how is the Erie PA market?

Question

Hi everyone,

Erie came up on my research as a great cashflow location. just curious why its not as heavily saturated as other locations? also what your take on it is in general?

thanks!

John Sangl · Answer

Hi Rubin,

I live in Erie, PA and have a mix of investment properties in the area (Couple Single Family properties in City of Erie, some multifamily in West Millcreek(Just outside the city).  It is a pretty good cashflow area.  The area has suffered from stagnant population & job growth and gets a lot of negative press due to the amount of snow(it is a lot).  I think this is why Erie isn't as saturated as other markets.

That being said - there is a good group of investors in Erie and the cashflow is good.  There is a significant amount of Healthcare, Insurance(Erie Insurance) and Manufacturing(Locomotive production at WABTEC).  There is some mild appreciation in property values as well.  If you're willing to work with low-income properties and some of the headaches that come with it, you can get great cashflow.

I think Erie will continue to cashflow well, but don't expect significant appreciation.  If you have any additional questions, feel free to message me.

John

Dawn Howard · Answer

Hi I live in Erie Pa too.  The market here is far from saturated.  While you won’t necessarily get the higher rents of Pittsburgh, Philadelphia and other large cities, Erie does not have the higher cost of barrier to entering the real estate market that those other cities present. I have bought a house from the city, a house from Fannie Mae and am currently in the process of negotiating a duplex from the owner.  There are lots of different types of opportunities available here.