Investor · Bayonne, NJ · Member since 2014 · 14 posts · 2 votes
Is Bethlehem PA worth investing in? I don't see a big job market or employment versus NJ. Is the population expected to grow or are people migrating from PA to a stronger financial district or another area to retire??
Flipper/Rehabber · Bethlehem, PA · Member since 2015 · 134 posts · 39 votes
7y
This is a super late response considering when the first post was written, but I just got the alert. I can't believe no one responded to this for my area in that amount of time. Bethlehem is a great area to invest in. I am biased because I live here, but I own two rentals in Bethlehem and both have been working out. Generally speaking, West Bethlehem is the most sought-after. But properties will cost a bit more. Maybe less cash flow up front, but potentially better appreciation later. North Bethlehem is good as well. Then South Bethlehem. South Bethlehem has had a lot of money thrown at it and has changed a ton over the past 5 years. Those areas are more expensive, but there are areas of South Bethlehem that are not good, cheaper properties, tougher tenants. I hope that helps a bit.
Rental Property Investor · Charlotte, NC · Member since 2016 · 293 posts · 88 votes
10y
Well, it looks like the 3 of us are interested LOL. It looks like there is some population growth but nothing to get too excited about. I think a lot of us NYers are looking at PA in general. This seems to be a place that can provide good returns but personally, I'm not expecting much appreciation.
Have you guys visited yet? We were just down there this weekend. Are you looking at student rentals or the more mature market? My realtor had me meet with an investor there and he was great. I did learn last night that out of state owners, actually anyone over 20 miles away) must have a property manager (which we were planning on anyway) . Just thought I'd share!
Flipper/Rehabber · Bethlehem, PA · Member since 2015 · 134 posts · 39 votes
7y
This is a super late response considering when the first post was written, but I just got the alert. I can't believe no one responded to this for my area in that amount of time. Bethlehem is a great area to invest in. I am biased because I live here, but I own two rentals in Bethlehem and both have been working out. Generally speaking, West Bethlehem is the most sought-after. But properties will cost a bit more. Maybe less cash flow up front, but potentially better appreciation later. North Bethlehem is good as well. Then South Bethlehem. South Bethlehem has had a lot of money thrown at it and has changed a ton over the past 5 years. Those areas are more expensive, but there are areas of South Bethlehem that are not good, cheaper properties, tougher tenants. I hope that helps a bit.
Real Estate Agent · Bethlehem, PA · Member since 2016 · 64 posts · 51 votes
7y
Great post @Chad Jarrah! I definitely agree with your assessment. I have a 2 unit on South side that give good returns, but can be challenging to get and retain good paying tenants. I also have two other properties on the West Side, they have a much more stable tenancy, not as great of cash flow, but the appreciation and stability will have me holding on to them. Again, you nailed it!
The Lehigh Valley in general seems to be on a good path with revitalization taking place. Allentown, Bethlehem, and Easton all have a growing population, job market, schools, hospitals, etc. I always enjoy talking RE in the area and just got these alerts as well, hope to see this discussion continue.
@Chad Jarrah Would someone with limited starting capital looking to house hack a Multi-family property be able to find something like that in the area? If so would it be in South Bethlehem?
@Andres Felipe Aristizabal...I would say it is possible, but with no tangible information -- like what "limited funds" means numberswise, which property, which part of South Bethlehem -- it's difficult to answer.
@Chad Jarrah hey chad I would love to pick your Brain on flipping and Analyzing deals I’m just getting started and having a bit of trouble with doing all the math and Expenses I’m from New York not to far from you. Would Appreciate any help thanks
Rental Property Investor · New York City, NY · Member since 2015 · 244 posts · 66 votes
7y
@Laura DelGuidice Bethleme, PA is a GREAT place to invest! Strong fundamentals as well as favorable landlord-tenant laws! Good starting prices on investments as well!
Let me know if you need a real estate agent in the area!
@Chad Jarrah thanks for starting this thread up again! I have recently been looking at properties around the Bethlehem area as it seems like a great place to invest with the hospitals and schools nearby. I live in Delaware, so not too far away, but I am not too familiar with the area so all this information is a big help. Thanks for all the great information @Ronald Bowser, @Tzvi Ausubel, @Chad Jarrah!
I usually invest in reading p.a, as a rule of thumb when looking at properties in reading I try to pay 20k to 25k per unit meaning a 2 family 50k etc., what would you say in a good number per unit and return of investment in South Bethlehem?
Real Estate Agent · Bethlehem, PA · Member since 2016 · 64 posts · 51 votes
7y
Good morning everyone,
@Account Closed It is tough to place a per unit value since there can be large swings between the rent for a 1BR vs. a 2-3 BR. That said, we like to see $50-60k per unit on average... closer to 50k of course. Again, that is just a rough look at the property, the rent the units can command and the overall purchase price are more important to drive the cap rate, cashflow, etc. The 2 unit I mentioned earlier in this thread is a good example. Unit 1 is a 2-3 BR (one is a walkthrough), while Unit 2 is 1BR on the third floor. Obviously, Unit 1 provides a higher rent income, but averaging them across the property doesn't account for the variation between the two.
When it comes to pricing of an investment property, the income it generates drives the asking price. We try and find properties that are being under utilized; vacancies, low rent, poor condition, etc. then figure out how we will make the numbers better if/when we take over. Finding properties that meet the above is our goal..
Thank you @Tzvi Ausubel never heard of the 2% rule I'm gonna look that up!!! At @Ronald Bowser what's your % cap rate you look for just curious, I look for At least 15 percent, I just recently moves to Bethlehem from my to be closer to my properties in reading p.a, I'm looking at these properties in South Bethlehem https://www.redfin.com/PA/Bethlehem/1137-E-3rd-St-... and https://www.realtor.com/realestateandhomes-detail/... since your from the area what do you think?
@Daniel Mateo The 2nd one in Bethlehem is on a very steep hill on a busy road, may make it less appealing to potential renters. The neighborhood isn't the greatest in that area. I did a live in flip just north of there on Kieffer Street. Car broken into, packages stolen, and the last straw was when they came in the front door. Luckily the dog and alarm scared them off. Still made a decent profit on it, enough to put into a larger home in a better area.
I like the first one better. Close to the casino and all the improvements in South Bethlehem. I would be sure to drive the area day and night to get a good feel. Some areas are ok, other a little rougher. I was looking in that neighborhood, working on saving up enough cash for a down payment. Progress is slowed a bit since my wife was laid off.
Metuchen, NJ · Member since 2018 · 9 posts · 1 vote
7y
Hello everyone, @Melissa N. would you further elaborate on the statement you made about a property manager being required for investors living over 20miles away from their properties? Any way around it? Is this required only in Bethlehem or throughout PA?
Realtor · Lehigh Valley, PA · Member since 2016 · 26 posts · 7 votes
7y
@Jason Mancini I am from Bethlehem as well .. And yes they want you to have a PM if you don’t live local but I would think you would want that anyway ..
I also have units in south bethlehem but like @Ronald Bowser said there are good returns but finding solid tenants that pay on time is the though part .. I have never had a problem getting a tenant tho when units become vacant .
Just have to vet them as best you can .
Metuchen, NJ · Member since 2018 · 9 posts · 1 vote
7y
Thanks @Kyle Keck, would you happen to know where I can find the local law regarding this regulation? Also do you have a PM company you would recommend or currently use?