Looking for suggestions on good investment towns in PA

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Looking for suggestions on good investment towns in PA

Scott Vincent
Mastic, NY · Member since 2017 · 16 posts · 3 votes

My wife and I are looking for our first buy and hold rental property. The market on Long Island is just too tough to get into so while we are exploring a few states our top choice would be PA because we can actually drive there rather than fly. We are looking for good cash-flow in preferably "B" areas with decent schools. Philidelphia concerns us a little since it seems to go block by block. If anyone could give some towns that may fit out criteria it would be GREATLY appreciated!! 

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Gregory H.
Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes
9y

Guys, I know you're trying to sell Pittsburgh, but he specifically mentioned it be driveable. If you search his town, he's pretty far into Long Island. Just getting to PA/NJ border is a few hours drive. If you're looking at low-price, high cap stuff, there's plenty of supply in the Lehigh Valley area. If you're looking for more stability, there are plenty of towns in the Philly burbs that'll do, there are also plenty of neighborhoods that surround Center City in Philadelphia that are not "block-by-block" depending on your price range.

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  • Josh Caldwell
    Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    Pittsburgh is one of the best cash flow cities in America and we have lots of B and C type neighborhoods that are safe to invest in.  

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  • Jeremy TaggartBusiness Member
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 647 votes
    9y

    @Scott Vincent 

    @Josh Caldwell is spot on.

    DHRE- The Jeremy Taggart Team590 Reviews
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  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 822 posts · 255 votes
    9y

    @Scott Vincent Hi Scott, Pittsburgh PA is a great city to invest in. Some of the factors that make it desirable for Investors is affordability to buy into, great return on investment, positive cash flow potential and an economical growth rate that rivals other larger metropolitan cities. Pittsburgh continues to see out-of-town investors showing a huge interest in Pittsburgh due do it's market growth, steadily increasing property values and rising rents. Pittsburgh is affordable to live in so it draws many professionals seeking a city that has a lot to offer...that youthful vibe that is so appealing! New investments by Google, Apple, Facebook and Autodesk is a true testament to the growing infrastructure here. Reach out to people in any city you are considering for advice on buying into, and managing remotely, including what areas of the city are more inclined to generate positive income. Whatever market you choose, look for those that know that market well and reach out to them. I wish you much success....Gary

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  • Gregory H.
    Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes
    9y

    Guys, I know you're trying to sell Pittsburgh, but he specifically mentioned it be driveable. If you search his town, he's pretty far into Long Island. Just getting to PA/NJ border is a few hours drive. If you're looking at low-price, high cap stuff, there's plenty of supply in the Lehigh Valley area. If you're looking for more stability, there are plenty of towns in the Philly burbs that'll do, there are also plenty of neighborhoods that surround Center City in Philadelphia that are not "block-by-block" depending on your price range.

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  • Gary Swank
    Real Estate Agent · Pittsburgh, PA · Member since 2014 · 822 posts · 255 votes
    9y

    @Gregory H. Yes Gregory, we saw the driveable criteria as we have researched the distance. And while Philly is certainly closer than Pittsburgh, many Investors are driving here from New York and beyond to at least search for properties that fit what they are looking for, consider all viable markets, and perhaps choosing to connect with others that can remotely and professionally manage while they visit periodically. We are just pointing out all options as it's always a great idea to get with the people that know the areas well, whether that be in Philadelphia, Pittsburgh or somewhere else. 

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  • Tu Le
    Real Estate Investor · Philadelphia, PA · Member since 2017 · 20 posts · 1 vote
    9y
    Hi I lived in south philly . But the market is high , can anyone recommended where to invest that is about an hour always from south philly . Thanks
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  • Lana Lee
    Philadelphia, PA · Member since 2017 · 364 posts · 109 votes
    9y
    Originally posted by @Gregory H.:

    Guys, I know you're trying to sell Pittsburgh, but he specifically mentioned it be driveable. If you search his town, he's pretty far into Long Island. Just getting to PA/NJ border is a few hours drive. If you're looking at low-price, high cap stuff, there's plenty of supply in the Lehigh Valley area. If you're looking for more stability, there are plenty of towns in the Philly burbs that'll do, there are also plenty of neighborhoods that surround Center City in Philadelphia that are not "block-by-block" depending on your price range.

     Could you please suggest some specific zipcodes in Philadelphia we could look at?

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  • Gregory H.
    Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes
    9y

    @Lana Lee I'd need more information. What kind of price points are you looking at, is your focus more appreciation or income ... meaning what is your risk tolerance level (do you prefer stronger markets with more predictable albeit lower cap rates, or are you comfortable entering the unknown abyss in search of grail-esque returns) ... and if you are going to self-manage, what parts of Philly do you know best?

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  • Scott Vincent
    OP
    Mastic, NY · Member since 2017 · 16 posts · 3 votes
    9y

    @Josh Caldwell @Gary Swank 

    Thanks so much. Pittsburgh is pushing an 8 hour drive for us so although it is not out of the question we are going to be checking out some place that are between a 4-5 hour drive. 

    @Gregory H.

    We are looking a a lower price point. Anywhere specific you in Leigh Valley you suggest I research? Thanks! 

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  • Matt Suchoski
    Real Estate Investor · Mountain Top, PA · Member since 2016 · 14 posts · 4 votes
    9y

    @Scott Vincent

    Have you considered Northeast PA (NEPA)? It's within a 2 hour drive of NYC. 

    There are plenty of small towns in the Wilkes-Barre and Scranton metro areas that would fit the bill. NEPA is a great market for cash flow and ROI. Don't count on much, if any, appreciation though. That's not necessarily a negative since it shows that the area is stabilized and is minimally impacted by market fluctuations.

    There are many areas here with lower crime rates, great school districts and very affordable home prices. They are your typical working class, C -level neighborhoods and they all have access to standard amenities such as restaurants, shopping and public parks.

    I'd be happy to go into more specifics if you wanted to send me a PM.

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  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    9y

    @Scott Vincent

    Pittsburgh is great, but if you are looking for somewhere within 4-5 hours you might want to try some of the non-Philly cities by you as well. Wilkes-Barre and Scranton are that way and I've heard people talking about rentals there before. I believe Clayton Morris buys there. You could listen to his podcast to learn more, but I think I remember him mentioning those areas. 

    Being local to Pittsburgh though I haven't had much reason to look elsewhere. As Josh said there are lots of C and B class areas here with strong rent to price ratios and returns. 

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  • Nicholas Weckstein
    Real Estate Agent · Warrior Run, PA · Member since 2016 · 341 posts · 146 votes
    9y
    The Wilkes barre Scranton area is great. Low price of entry. Great cash flow. Just gotta know what to look for ! Also much closer. I'm from Nassau county it's about 3 hours away.
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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 644 votes
    9y

    Hi Scott,

    Welcome to BP!

    You are correct, with immediate concerns on education and poverty lines in Philadelphia but if you look at the Developments being announced and consistent job growth from College Graduate Retainage as well as Caddy Corner to DC and NYC. Philly is the best bet. If you decided Cities that are relevant you would need to look at some of the Rust Belt Cities such as Pitt, St Louis & Cincinnati. You will get the same or better cash flow but not the appreciate based on the of the highlights that Philadelphia brings.

    Let me know if you have any questions.

    Regards,

    Joe Scorese

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