I have a deal im working on right now in Allentown Pa
I have a 3 unit property for 50K which im financing with 25% down payment
Renovations and repairs is estimated in about 15K
There is one studio that can rent for 600$
1bd for 750
3 bf for 950
Does it sounds like a good deal ? Is anyone investing in that area?
Which part of A-town?
@Simon W. Around linden street...
Do you invest in the area?
Assuming the area is good and expenses are normal (around 50% of gross income), your numbers look very good. Be sure to do heavy due diligence on not only the property but the market as well.
@Austin Lee can you give me some tips of where to get info on a specific market like mine
Or any others ?
Talking to local agents and property managers is a great place to start. You can also check the crime statistics on trulia.com by typing in the property's address, clicking to your property's page and then scrolling down to the Neighborhood Info section. There you will see the crime stats link. I also just google the street name and see if anything like news reports show up.
Just about everything is for sale in Allentown. I'd bb cautious buying there.
I know where Linden St. I pass by the area pretty often. It's rather a low-income section of Allentown. It's a decent investment there.
Not everything is for sale there. Allentown is pretty big. Most places BPers are talking about the not-so-great neighborhoods. I wouldn't rule it out of your investment strategy.
@Jonathan Emery are you investing in Allentown ? Do you recommend to buy and hold properties there as rental? Also can you recomend a management company?
What block of Linden? You're buying right for center city. What is the unit mix? We invest heavily in downtown Allentown. Can answer any of your questions.
Also, depending on your finishes, those rents may be a little higher than market and more difficult to maintain. Assuming regular middle of the road type finishes, you're closer to 525-550 for the studio, 650-675 for the 2 bed and 800-850 for the 3 bed. Will depend on block of Linden St, also, but taking into the fact that you're buying for 50k, I will assume it is east of 12th street.
@Joe C Yes you are right! what Finishes do you recomend for this area? Do you think 15 k for repairs is too high? Also are you using management company and if so can u say who?
it depends on your budget, the condition of the units now, and what you are looking to garnish in terms of rent. To be in the middle of the road for the area, you just need to be clean and liveable. Vinyl in kitchens and baths, carpet , vinyl, or vct in living rooms and bedrooms unless you're lucky enough to have hardwood in those areas. We use pedestal sinks in bathrooms because they are difficult to damage and easy to clean or replace. We manage our rentals ourselves, but give a shout to advanced realty services, they are pretty good managers.
yes I do invest in Allentown. I also do have a property manager. You can connect with me i'll be happy to share their information.
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