I am a first time buyer looking for a multi family in Schuylkill County. I live in the lehigh valley and know it is very hard to find a rental property right now.
Has anyone purchased properties out that way or have any info on that area. The places are pretty cheap and I know around the Shenandoah area the town is basically dying but I do not know too much about that area.
Flipper/Rehabber 路 Bethlehem, PA 路 Member since 2015 路 134 posts 路 39 votes
7y
I do most of my investing and Lehigh and Northhampton counties, but do some as well in Schuylkill county. You are correct, in the 1st two counties, we are flooded with investors and prices are rising; Competition is high and it's getting tougher and tougher to get a good deal. But those areas are more likely to appreciate over time especially with all the influx of money coming in.
In Schuylkill county, you can get more bang for your buck. Properties are cheaper and I have never had a problem renting to good tenants at a good price. The cash flow there is excellent, but I would go into it assuming things will not appreciate as much over time, especially in comparison to Northampton and Lehigh Counties. That being said, who knows, with what's happening in Leh/Nor, investors could push out to those areas and things might appreciate more/rents go higher. It's all a guessing game, but it is a fact that cash flow is good there.
Avoid the smaller/heavily depressed towns like Shenandoah. Stick to the mid-size towns like Pottsville and Tamaqua.
Flipper/Rehabber 路 Bethlehem, PA 路 Member since 2015 路 134 posts 路 39 votes
7y
I do most of my investing and Lehigh and Northhampton counties, but do some as well in Schuylkill county. You are correct, in the 1st two counties, we are flooded with investors and prices are rising; Competition is high and it's getting tougher and tougher to get a good deal. But those areas are more likely to appreciate over time especially with all the influx of money coming in.
In Schuylkill county, you can get more bang for your buck. Properties are cheaper and I have never had a problem renting to good tenants at a good price. The cash flow there is excellent, but I would go into it assuming things will not appreciate as much over time, especially in comparison to Northampton and Lehigh Counties. That being said, who knows, with what's happening in Leh/Nor, investors could push out to those areas and things might appreciate more/rents go higher. It's all a guessing game, but it is a fact that cash flow is good there.
Avoid the smaller/heavily depressed towns like Shenandoah. Stick to the mid-size towns like Pottsville and Tamaqua.
@chad jarrah thanks, this is the type of info I was looking for. Some of those prices were ridiculously cheap and that set off some alarm bells. As a first time investor I realize there's things I just don't know so thanks again
Do you think it would be worth it to buy a rental that was cheap enough that I would make a cash flow of around $300 per unit but the home may not appreciate?
Flipper/Rehabber 路 Bethlehem, PA 路 Member since 2015 路 134 posts 路 39 votes
7y
If you buy a property out that way you should make more in cash flow. It's not unheard of to buy a property there for 15K, put 10 into it and then rent for $900 per month.
I purchased two 3-unit multifamily properties in Schuylkill County, the first in Saint Clair as a house hack and the second in Pottsville as an occupied rental property, while I was living there. Like you I noticed that the properties were cheap compared to the rents and compared to other areas of PA. But I would really stress tenant screening. I've had one unit turnover each year I've owned the Pottsville apartment building, with two of them being evictions. Also, decide if you want section 8 to be part of your strategy because that will affect who you rent to.
I agree with @Chad Jarrah that you can get good cash flow but not to count on appreciation. And I also agree to stick to towns like Pottsville and Tamaqua and I would recommend looking at Schuylkill Haven and Orwigsburg. Feel free to reach out with more questions!
Rental Property Investor 路 PA 路 Member since 2015 路 23 posts 路 3 votes
7y
Joseph & Chad, I have 2 sf homes in Schuylkill and looking to expand my portfolio, but I am low on cash to buy another property. I have not been able to refinance either since banks tell me they do not provide loan programs under 90k.
Have either of you had any success with local banks or a local private lender?
Flipper/Rehabber 路 Bethlehem, PA 路 Member since 2015 路 134 posts 路 39 votes
7y
Local, smaller banks are much easier to deal with. If you have good equity and are employed, you should be able to find a lender willing to help out. You might have to try a few times to find the right bank/lender though. Good luck!
It's been a while since I posted on this thread, but I have another question about the area. I am looking at wholesaling a property in Pottsville that should go for under 10k and will probably need 15-20k (from looking at pictures) and should rent for about 700-800 a month. My issues is it is a sfh, as investors are you interested in sfh in that area or are you only looking for multi family?
Hi Brian did you find a property in the Skook County yet? Yes, lots of rentals in the area. Many homes are converted of can be converted to multi-unit places.
Investor 路 Los Angeles CA, United States 路 Member since 2017 路 12 posts 路 3 votes
6y
@Joseph Adelmann and others who have years investing in the area.
I am looking into purchasing a multi but am in need of a property manager, do any of you have suggestions? I have a lender contact and would love to get started in this area if rentals makes sense.
Rental Property Investor 路 Carlisle, PA 路 Member since 2019 路 9 posts 路 1 vote
6y
@Bryan Davis Please share your experience, I am also new to this field and looking for rental investments opportunity in Schuylkill County.
@Chad Jarrah@Joseph Adelmann , please let me know what are the good town/area in the Schuylkill county for rental investing. Also, what are the major companies here offering jobs?
I can't offer much input when it comes to local banks but there are some good credit unions in the area. I went with Wells Fargo for the mortgage on my multifamily and don't have a mortgage on the other.
I self manage my properties so I don't have a lot of useful information on local property managers. You could check out Slatehouse Group Property Management. They are a growing property management company in central PA and I think they will manage properties in Schuylkill County. Best of luck!
I did some research and came to conclusion that market is good but might not have the proper items in place for an out of state investor yet. I found something else in my market and recently closed.
From what I gathered, they have one good property manager thats swamped with inquires, no staff and is doing it herself (doesn't return calls) and contractors are a handful but booked. I would have to be on the ground to make to make something happen in my window.
I think Tamaqua, Schuylkill Haven, and some areas of Pottsville would be good places to look. There is some industry in the county. I used to work at Hexcel which is an aerospace manufacturer employing 300+ people. Also, Alcoa, Jeld-Wen, Fabcon, and Tredagar films all have plants in the county. The prisons also employ a lot of people and there are a fair amount of retail jobs. Warehousing and distribution is growing in that area with there being a Walmart and Lowe's distribution center there. Here is some interesting labor information: Schuylkill County Profile
Also, although Hamburg is in Berks County, there is a large shopping area which attracts people and jobs so that might be another option to consider. Best of luck!
Rental Property Investor 路 Carlisle, PA 路 Member since 2019 路 9 posts 路 1 vote
6y
Thank you @Joseph Adelmann you are awesome. I am looking for a good managemet company who can provide service to my tenants (quick SLA's) any recommendations would be very helpful.
Investor 路 Pottsville, PA 路 Member since 2014 路 46 posts 路 15 votes
6y
No problem @Avi S., any time. I don't know local property managers but I believe Slatehouse Group Property Management, which is a growing property management company in central PA, services the Pottsville area. I'm not sure what areas of the county though so you would have to contact them.
Rental Property Investor 路 Gilberton, PA 路 Member since 2017 路 36 posts 路 10 votes
6y
I am also an investor in Schuylkill County. Seeing this post is old now if you have not invested here yet or looking into Pottsville they are creating some new requirements for rentals. The code enforcement is a pain in the *** here and they are trying to get tough on the dilapidated properties. Unfortunately, my one property in Pottsville had squatters in there and took almost a year to get rid of them. At that time they destroyed the home. I have it just sitting now on the back burner till I decide what to do with it. Probably could put $10k into it and then would be a good rental. it is a difficult area if you need help since impossible to find reliable contractors and property managers. I know the area pretty well and can direct you to better areas if looking for lower price homes.
@Joseph Moore Jr have you started investing in the area yet?
I own 5 properties in PA. Just really hard finding a property manager and contractors. Not buying anything else right now around Central PA. Concentrating in a different area.