Anybody making money in Pennsylvania?

Question

I’m curious about moving my focus to the PA market. I’m looking to get into buying larger multi families and with the combination of lower prices and taxes as well as its proximity to NY I think PA has a lot of potential. I’d love to hear of any success stories, as well as recommendations in hot locations, property managers, realtors and even contractors.

Brendan Markle · Answer

I invest in duplexes in Philadelphia, and have had great success in the C/D neighborhoods (Frankford, Kensington, Germantown etc).  All of my places have achieved me about a 15% rate of return, and have the potential to eventually appreciate.  If you have any questions I would be more than happy to help.  I am also a licensed Realtor.

Patrick Liska · Answer

Have to Agree with @Chris K. on his analysis of PA. I invest in Central PA - Lock Haven, College town. I own both Student and regular rentals, you can cash flow as long as you make sure your numbers are right, the Cap rate in this area is 10 and do not count on Appreciation to make money, it's cash flow and equity that gets paid by your tenants that makes you money. i have made some money on a couple flips i did, but it has to be in the right area, houses can even sit on the market for a year if you try to sell. Investing in most areas in PA is like buying a savings bond, good for the long hall but not for quick money, unless you invest in certain areas.

Chris K. · Answer

@Brian Kehoe

The primary markets in Pennsylvania are Philadelphia and Pittsburgh. My understanding is that you can find cash flowing properties but they do behave like primary markets. So cap rates are generally lower there.

Allenton/Lehigh Valley area is doing its own thing. Consider that to be the secondary market.

Then you have other tertiary areas like Wilkes-Barre/Scranton area, Harrisburg, Lancaster, Reading, etc. I haven't invested in every single one but you are generally dealing with a market that historically been around a 10 cap market. They will cash flow but hard to count on appreciation. It's not uncommon to see properties being sold for around the same price 10 years later. So you have to adjust the exit accordingly.

Aside from those, you have "pure" college towns like State College. Can't say I know much about that market but I know there are many investors.

I would take a look at the above areas and see what strikes you. I think you can make money in all these areas. It's just a question of whether you can execute and find the right team as an out-of-town investor.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Ruby Schwartzberg · Answer

@Brian Kehoe I think money can be made in Philadelphia, that is why I want to start my REI here, the place I know. Don't think you can go wrong, just do some research on area, etc.

@Brendan Markle..

I have always been interested in investing in duplexes. Philadelphia is good for those, maybe one day we'll cross paths.

Elise Bickel Tauber · Answer

Pittsburgh has a ton of good investments. Right now stock is limited for purchase, but you should be able to find some really good deals here.

Brian Kehoe · Answer

@Brendan Markle Thanks are you self managing or using property management?

Robin Rinaldi · Answer

Following ... Same questions here.

Anybody making money in Pennsylvania?

Most Popular Reply