Hot Markets in North east PA for SFHs?

12 Replies

What are some hot markets in northeast PA? i was thinking of clarks summit, dunmore, and scranton, possibly stroudsburg. I have property in Sugar Run, PA but that is the extent of my knowledge about the state of Pennsylvania.

Hi @Patrick Martone :

What do you mean by "hot" market? Markets where the market cap rate is lowering? Markets where SFR values are appreciating faster than average? Or something else?

With the risk of generalizing, any market that's not Philadelphia, Pittsburgh, or Allentown is a tertiary market in Pennsylvania. The market fluctuates but fundamental changes are fairly rare when you look at the big picture. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

Hi @Patrick Martone

I feel like a lot of PA(northeast included) are great for cash-flow plays.
I haven't heard of many of the areas that you mentioned but they appear to be a good cash-flow play just by looking at the medium home sales price of $85,000 - $150,000. The areas also appeared to be low on crime risk. However, a downside that I did see was that population was low, below 100,000, and has flat increases year over year.

I hope others with actual experience in those areas can chime in.


I personally invest in Allentown, PA and I find it to be great for cash-flow purposes.

Basit

@Basit Siddiqi Where in BK are you from? I grew up in New York. Are you based in NYC receiving cashflow from Allentown? I considered Allentown but know little about the ins and outs.

I only know scranton and stroudsburg as I pass them going to my PA property on I80.

In East Stroudsburg, you can pick up a decent rental property and have a high return, due to this area having slightly higher rental amounts. 

Hi @Patrick Martone

I am located in Bensonhurst Brooklyn(South Brooklyn).

Yes - I live in NYC while maintaining a rental property in Allentown PA.

I would prolly suggest looking to invest in Scranton and Stroudsburg if you know those areas better.
However, feel free to ask me any questions you have on Allentown.
Allentown prolly has a higher rate of crime occurrence than the areas you posted(as a headsup)

@Basit Siddiqi how long have you invested in PA? I am season investor With most of my real estate portfolio in upstate NY. Do you have a solid team in PA? What sort of cash on cash and cap rates are you seeing. Thanks!

Hi @Aqil Dharamsey -
I just recently started investing in PA(June 2017) and as a result I would take any information I say with some sort of skepticism. 

I self-manage the property and as a result I really only have a team of 1 in PA(my real estate agent.) However, I compensated by taking the time to research a list of contractors to help me when the time comes(roof repairers, plumbers, contractors etc).

I financed a $52,000 home that rents for $950 a month. I calculate a 20+ cash on cash return with property management expense built into the calculation.

Let me know if you have any other questions.

Hey @Basit Siddiqi how's it going with your rental in Allentown and issues with crime or tenants? Any new updates or purchases? @Aqil Dharamsey did you ever make a purchase up there? Picking up this forum as I'm currently looking in the area. Any information is appreciated, thanks.

I actually further invested in my own back yard Rochester NY

It's always smart to stay in your own backyard. Unfortunately for me my backyard is in Manhattan so that's not happening. I've been looking in Ulster county but inventory is low and going fast. Which is why I'm trying to extend my search a little. How's Rochester working out for you any good neighborhoods up there for buy and holds or flips? How are the numbers? 
 

 

@Patrick Martone I also invest in Allentown and Lehigh valley area in general. The market is pretty hot there. If you are interest in Scranton and surrounding areas, read the posts by @Chris K. He is local and has great insights. I personally didn’t want to invest there as I am not sure if the positive economic indicators are there.

Great reading this thread. Considering I'm originally from Brooklyn and now live in PA. I'm in the Lehigh Valley area and looking to build a portfolio of a mix of Flips, Holds, BRRR ( Love That) I'm in need of someone who can give insight on how to properly price out material and understand cost with these new contractors. I know its about buying the property right and knowing your exit before hand but I need to build up my pricing awareness! Any ideas... I used the calculator as best I could but the material and cost is the blind spot of me... Thanks

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