Harrisburg, PA potential?

Question

I've been scanning around the country for the best multi-family rental investment locations. The price of real estate in Harrisburg, PA versus the rental comps available seem like a dream come true! Can anyone volunteer data regarding vacancy rates? Really, I'm looking for any data that will burst my bubble before I put money into an unfamiliar market. Thanks!

Jean Moynahan · Answer

Once you cross 3rd/4th Street, neighborhood character changes from yuppie/young professional to working class/long term resident then to little seedy/keep your bike in the house. City officials wax grandiloquent about the federal courthouse and the revitalization it will bring, but most long term residents think otherwise.  One of the issues  affecting harrisburg is that because it is such a small city, crime can happen anywhere.  People warn you about allison hill, but  know of many startling cases involving robberies near the capitol, some literally in front  of building.

Harrisburg is similar to Trenton in that it relies upon the state bureacracy to provide stable long term jobs, government work is the city's economic lifeline.Transport hubs also provide a fair living for blue collar folk.  Without these twin pillars, the city would have faded into complete obscurity.  So harrisburg, an otherwise irrelevant city in the heartland of pa, exists in an economic purgatory.   It is sustained by virtue of geographical proximity and bureaucratic largesse, buthindered by an inept local government, struggling urban population, poor education system, and high crime, at lest for its size.

I would buy outside the city if I were you.

Dylan Thomas · Answer

@Samoy Min Hoayin just make sure you know what you are getting into…

Harrisburg looks great on paper. But paper and real life are 2 different things…

Lot of out of state people buying hood beaters for 110k that are really only worth 50-70k… just be careful. Anyone can make a property look amazing on a pro-forma.

I own 25 units in and around the city, but only buy in a very few select pockets. The war zones are not for me

Eric Drum · Answer

No revelations in my post but I will ramble just the same.

There are Central Pa and 717 FB groups with good folks where you can bounce ideas. My advice is to fly out here and tour with someone local for a few days. Coordinate the visit with local meetups. Get on buying lists etc.

Hburg area is cheaper than most but yield is the same process as elsewhere with many, many equity growth exceptions. I track over 200 SFR listings daily on MLS and stalk neighborhoods. However, since I have only been in the Hburg area, I rely on networking to evaluate properties in my buy box and cash flow expectations.

Boruch Vann · Answer

Great advice! Am i correct in assuming that most of the listings on Zillow are "war-zones"?

Ari S. · Answer

Rock has a good multifamily market report. I think average vacancy is around 3.7% Market report

Taylor L. · Answer

I know Denis Shapiro from SIH Capital Group is investing in that area. If you look up his site and reach out to him he may be able to help with resources on the area. @Ari S. invests in the greater HBG area/neighboring towns, he may have some thoughts as well!

Harrisburg, PA potential?

Most Popular Reply