Wondering which areas in the Leigh Valley people are interested in and have had success with - I've been looking at Bethlehem, PA which seems like a pretty good option with the surrounding amenities and lower prices. Allentown, PA seems like it's already a pretty developed, hot market. Anyone have any experience/wisdom to share with rentals in Bethlehem?
Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes
7y
@Kristin Caras
Hey Kristin- I just started investing in the Lehigh Valley after a few years investing in suburban Philadelphia about an hour south, and there are definitely deals around. When I was in town, I wanted to focus my search on the developing area surrounding the PPL center in Allentown as a potential for future growth in rents and value.
I picked up a renovated but vacant triplex for $175K at 4th and and W Turner that needed $10K of work and is now listed for rent. I can recommend some people in the area as I’m pleased with the team I have in place now.
Real Estate Agent · Bethlehem, PA · Member since 2016 · 64 posts · 51 votes
7y
Hi Kristin,
I have a few rentals in Bethlehem which is my preferred location in the Lehigh Valley, but I am partial since I live here. The other two main cities that comprise the Lehigh Valley are Allentown and Easton, with a bunch of boroughs and townships as well. You can drive from one of the main cities to the next within a half hour, so they are not wildly different demographically, but each has it's own nuances. If you have any specific questions, please don't hesitate to let the forum know or feel free to send me a DM. Good luck with your investing!
Rental Property Investor · Lehigh Valley, PA · Member since 2019 · 21 posts · 8 votes
7y
Hey Kristin, Allentown, Bethlehem and Easton all have their pro’s and con’s from what I’ve been able to learn. I am new and have been studying and networking like crazy for the past 2 months. I am thinking that Allentown has the best growth over the next two years as they are capitalizing on their NIZ designation and Bethlehem and Easton have been a little slower in getting their CRIZ designation working for them. I am sure that they will catch up over a couple years, but for now, Allentown has beat them out of the gates... that being said, there is a lot more high end apartment and condo construction going on in Allentown, but that guides the strategy I am rolling with...
@Ronald Bowser@Lane Donatelli Thank you for your input! Of the three, Easton, Allentown and Bethlehem, I'm definitely more up to speed on Bethlehem. Good to know there are other investors interested in the area!
Rental Property Investor · Valley cottage NY · Member since 2017 · 35 posts · 37 votes
7y
Hey Kristin,
I just bought a three unit in Allentown and so far it’s been going pretty good! The key is to pick the right streets and do your due diligence. I am currently fixing up my property and I just finished the first unit and within two days I had a bunch of people interested. Investors have bought up many properties over the last few years and slowly but surely the slum lords are leaving. If you do your homework there are plenty of deals to be bought still with great cash flow.
Hey everyone. I have a lender who has a couple of nice fix and flip financing options. One would be a line of credit of up to 2M for those of you who are experienced. This would help preserve your credit score by not having to apply for financing for each project. We also have traditional financing where they will lend 90% of the sales price, 90% of the renovation costs and 75% of the after repair value.
One great thing to note, they will finance inexperienced investors performing their first flip. Let me know if anyone needs additional information.
Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes
7y
@Kristin Caras
Hey Kristin- I just started investing in the Lehigh Valley after a few years investing in suburban Philadelphia about an hour south, and there are definitely deals around. When I was in town, I wanted to focus my search on the developing area surrounding the PPL center in Allentown as a potential for future growth in rents and value.
I picked up a renovated but vacant triplex for $175K at 4th and and W Turner that needed $10K of work and is now listed for rent. I can recommend some people in the area as I’m pleased with the team I have in place now.
Rental Property Investor · Reading, PA · Member since 2019 · 76 posts · 43 votes
7y
@Kristin Caras actually looking at a few small multi family 3 to 4 units . if the numbers work I say do it . 10% cap fare .15%-20% hit me if you help with analyzing a deal
Hey Kristin- I just started investing in the Lehigh Valley after a few years investing in suburban Philadelphia about an hour south, and there are definitely deals around. When I was in town, I wanted to focus my search on the developing area surrounding the PPL center in Allentown as a potential for future growth in rents and value.
I picked up a renovated but vacant triplex for $175K at 4th and and W Turner that needed $10K of work and is now listed for rent. I can recommend some people in the area as I’m pleased with the team I have in place now.
Good luck!
Christian
Hi mr Christian , i live in Clifton Nj, and interested in investing in Pa, since prices here are non sense. Could you give some advice. Thanks in advance.
Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes
7y
@Jhon Restrepo
Hey John- Pennsylvania is a diverse state with major metros, secondary markets, suburban, and rural regions. They key for me is to find one area- a few square miles but no more- and get to know everything in that sector. When you look at an entire state it can be confusing and difficult, so narrow the search.
After spending weeks and months looking at the same few blocks the deals will jump off the page when you see them. Run one property through the BP rental property calculator every day, this will add to your education. Then start to build out the team. You’ll need an agent, preferably a broker, and it’s a bonus if they have in house title. Then you’ll need a lender, preferably one that is familiar with investors and their requirements. Lastly you’ll need property management, I was fortunate enough to find a firm that has agent/broker/title/PM under one roof and it made everything clear from the beginning.
Hey guys. I'm actually looking into the same area, specifically Phillipsburg NJ. It's a designated opportunity zone and UEZ zone. The area right across the free bridge from Easton is particularly attractive, anyone know the area?
Brooklyn, NY · Member since 2015 · 26 posts · 7 votes
6y
Hi all! i know that I'm jumping on this thread pretty late. My in laws currently live in Easton and it's a very interesting area. Does anyone have a a broker with experience in Lehigh VAlley?
Rental Property Investor · Jersey City, NJ · Member since 2017 · 104 posts · 53 votes
6y
@Emmanuel Jeanty Try @Ronald Bowser . Very good guy and very knowledgeable on the area. He works for a company that does ppty mgmt as well, so he knows the ins-and-outs of that aspect as well. Very good person to know in the area IMO.
Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes
6y
So an update for anyone who was following this thread:
The previous owner left a ton of his permits open and some of the work he did was not up to code and not disclosed. This certainly could have warranted a lawsuit and we still may send him a letter, but the big deal is that the place could not be rented until all of the open permits were closed and the work redone to code. Purchased in August, it is January and we still have not been able to place tenants due to a lack of Occupancy Certs (though we have had plenty of applications). The city of Allentown is no joke when it comes to this kind of thing- so buyer beware that permitting and construction work is definitely going to be a major part of any renovation in the Lehigh Valley.
The latest is that we have finally gotten approval to complete the work that needs to be done to get the occupancy certification and begin renting the units. A comp is under contract down the street for 300K+ so we are optimistic it will still be worthwhile!
Hey Kristin- I just started investing in the Lehigh Valley after a few years investing in suburban Philadelphia about an hour south, and there are definitely deals around. When I was in town, I wanted to focus my search on the developing area surrounding the PPL center in Allentown as a potential for future growth in rents and value.
I picked up a renovated but vacant triplex for $175K at 4th and and W Turner that needed $10K of work and is now listed for rent. I can recommend some people in the area as I’m pleased with the team I have in place now.
Rental Property Investor · Phoenixville, PA · Member since 2015 · 119 posts · 61 votes
6y
Hey guys- so I wanted to post a follow up to my post above since it received some attention. I think one of the best things about this site is that people can feel free to post about their success stories, but also about their losers.
So this purchase seemed like a real winner (and it may be one day) but things got much more complicated after we tried to get our certificate of occupancy from the city. Apparently the previous owner had pulled a bunch of permits for work to be done and ran into some major hurdles (including the need to install a new fire escape, install a new floor joist, and move an interior staircase). The work likely totaled so much that he just decided to sell instead, which is where I got involved.
None of the needed work was disclosed in the selling process, and we did not know about the 50K of needed repair until we got involved with the city and tried to get a certificate of occupancy. We are now in the process of 1) asking politely for the previous owner to pay for repairs ahead of a potential lawsuit and 2) getting quotes to do the work. We are hopeful that we can complete the project for 30K, which would still leave us with a decent amount of value in the property.
It is 5 months later and we still don't have any tenants- but this is where having a great property manager makes a huge difference. My PM used her own lawyer to contact the seller, and is covering the mortgage until we get some tenants placed! I'll try to remember to post a follow up once the work is complete and the place is fully rented.
Jersey City, NJ · Member since 2017 · 135 posts · 31 votes
6y
@Christian Beyer Wow! Sounds like quite an ordeal/learning experience. Best of Luck. Knowing this will definitely make think twice before buying a property that doesn't have a CO in that area.
Lenore Mohr is KW agent that specializes in investments within Easton, Allentown and Bethlehem. She's a great source for rentals and multi-use and has a with a fast growing portfolio of available properties. https://www.kw.com/kw/GetAgent.action?personId=674957