First post / so excited!! Question on Pennsylvania

[Tzvi Ausubel]

I love BP, josh and Brandon, you guys rock!!! Podcasts are incredible, webinars amazing, and publications super helpful and easy to read. Anyways, to the point, beginning investing in Pennsylvania. Wanted to get some opinions on the locations you think the market is doing well. Anywhere in particular to stay away from in your experience? I've been thinking the southeast portion of the state, Philly/Harrisburg areas. Anyone have a good PA certified inspector you use and recommend? Looking forward to beings part of the BP community!!

[Richard Bradshaw]

Hi @Tzvi Ausubel

I am an investor in Berks County, Pa. Our market is very strong at the moment. Like the rest of the country it is tightening up but there are still foreclosure sales available. I have bought 2 properties at around 50% AVR in in the past 2 months. I mostly concentrate on buy and hold but there are plenty of flipping opportunities. 

There are plenty of opportunities to buy properties at $10,000-20,000 with a $30,000 rehab and sell at 70,000-80,000, in Reading, Pa. There are also opportunities in the suburbs of Reading, (Berks County) to purchase at 50% and the average market sales are probably around 125,000.

As far as Reading goes, you can also buy inexpensive, high cash flow properties. SFR and multi-units. To do well in this space you need great property management and thorough screening of tenants.

The Lancaster, Harrisburg and Lehigh Valley (Allentown, Bethlehem, Easton) markets are very similar to the Berks Co market with Lehigh Valley being your best bet for appreciation. There is a lot of development in the Lehigh Valley, specifically in Allentown and Bethlehem.