Middletown, PA · Member since 2015 · 6 posts · 0 votes
Hello everyone,
I am very interested to invest in a property in Hampden township, PA but soon will be moving out of the area. Details of the property.
1. 2 units: Main and a lower level basement converted into a another unit.
2. Gas: heat and electric
3. CV school district
I have read a lot on bigger pockets and learnt from podcasts on remotely managing rental properties. Also this will be my 1st time being a home owner if this investment goes through. My main questions to the folks out here are as follows.
Question 1: Since I might move out within a year or 2, I am trying to understand what risks do I have managing it remotely as a rental property in this particular area.
Question 2: The rental demand in this area? I believe this area has good chances of renting out due to CV school district and everything nearby but I don't have a 1st hand experience of how actually the demand is? Ideally I would like to rent out to families for both units.
It will be very helpful if I can get any suggestions and tips on these two questions AND other concerns too since I am a newbie in real estate investments. Thanks!!!
Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
9y
Not my part of the state, I dont know the area but I can tell you about distance management.
The problem with distance management is that you need to lean on other people who you can't really oversee. Out of town owners have more problems with contractors ripping them off than anything. Property managers can also be an issue. You will want to fully vet your property managers to make sure that they properly screen your tenants, and actually attempt to get you long term tenants rather that quick turnover and more commission for themselves.
I dont know your school dist, but if it is a good one, you shouldnt have trouble getting renters. Sorry, if you were in Western PA I could offer more help.
HVAC mechanic · Philadelphia, PA · Member since 2015 · 241 posts · 57 votes
9y
If there are any property management companys in the area, they can and will be glad to answer your questions. Especially if there is a chance of them getting your business
Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
9y
Not my part of the state, I dont know the area but I can tell you about distance management.
The problem with distance management is that you need to lean on other people who you can't really oversee. Out of town owners have more problems with contractors ripping them off than anything. Property managers can also be an issue. You will want to fully vet your property managers to make sure that they properly screen your tenants, and actually attempt to get you long term tenants rather that quick turnover and more commission for themselves.
I dont know your school dist, but if it is a good one, you shouldnt have trouble getting renters. Sorry, if you were in Western PA I could offer more help.
Middletown, PA · Member since 2015 · 6 posts · 0 votes
9y
Thanks Josh for those suggestions. But yes the school dist is a good one and its in central Penn.
I am a little skeptic about managing it from a distance since I may have to have property managers handle it for me and that would be a dent on the cash flow that I would get. Apart from the quality of work they put in of course.
I have read about the PMs and see that the fee is between 6-11% of monthly rents. But I am not sure if they go by like a month-to-month basis or its like an annual contract with them and they handle all tenant related issues while I do secondary screening, etc.
Realtor · Camp Hill, PA · Member since 2016 · 69 posts · 17 votes
9y
I own a home in Monroe Township, Cumberland County, CV school district and can tell you it is one of the most desired school districts in the Central Pennsylvania region. I have been watching the rental market in this area for some time as I am converting a 2000 sq.ft. 4/1 into a single family rental in the upcoming months. If you could provide a few additional details on the two unit i.e. bed/baths, sq. ft., lot size, parking, type of neighborhood... I would be glad to give you a solid range on comparable rental prices.
Along with a top tier school system there are several other attractive amenities to consider such as; Naval Depot, Army War College, Dickinson Law, some of the nations top employers, job & population growth and the convenience factor of accessibility to major highways to the Harrisburg/Hershey, Philadelphia, Pittsburgh, Baltimore & Washington D.C. areas.
To address finding a quality property manager/company in this area might be a challenge. This is is an area I have considered venturing into as there is very few quality property management companies in this area.
Feel free to reach out to me personally and maybe I can be of help.
Rental Property Investor · Pittsburgh, PA · Member since 2015 · 7 posts · 6 votes
9y
I'm from Carlisle and attended CV schools from K-12. My parents still live in Middlesex Township. My uncle lives in Dillsburg and has owned & run a construction & remodeling company for 20+ years, along with owning 300+ rental units. His daughter used to work for him doing office management & bookkeeping, then started her own property management company in Mechanicsburg and has run that successfully for several years now. She started off managing about 1/3 of her dad's properties, but has now earned the business of quite a few other investors. Just through word-of-mouth advertising.
It was because of my uncle and all his good advice that I got into buying rental properties in the first place. Right now, my rentals are all in the Pittsburgh area and I self manage. However, if / when I decide to expand my reach a bit back to Central PA (since I know the area well), my cousin would be my first choice for managing my properties.
If you would like their contact info for Property Management and/or Renovations, just PM me.
Investor · Hummelstown, PA · Member since 2016 · 70 posts · 28 votes
9y
Great school district!! Congrats! I manage my own properties remotely. I recommend spending a lot of time getting to know the property before you leave the area so you can plan for what might go wrong first. I walk through with the property inspector and ask a lot of questions and when appropriate, I go through with the prior owner.
If you have someone you trust live nearby, walk through with them. When my tenants have an issue, I have a friend check out the issue before calling a plumber, electrician, etc. That way I'm not paying for a service call that's either unnecessary or solving the wrong issue (for example my tenants thought the issue was plumbing but really it was an issue with the construction of the shower).
Do this regardless of whether you hire a professional property manager. Property managers can be good but no one cares about your property like you do, so make sure you're as informed as possible.
Harrisburg, PA · Member since 2015 · 43 posts · 52 votes
9y
@Pratul Singh - not sure your questions are still relevant after 2 months. We are Flip-Lords based in South Central PA, including Hampton Twp. CV school district is one of the most desirable in the state, let alone SC PA. You don't give details on your property but demand in that area is huge and you should have no trouble renting if your rent is at market rate.
We do everything from purchase & construction to management & maintenance so I can't give you a referral for a local management company. I do know that long distance management is a hard thing to do. I'd advise getting local contacts for the skilled professional services you'll need. That will make the long distance management experience more efficient. I'm happy to give you specific advice if you have questions; PM me.