All Forum Posts by: Tom McGrew

Hi @Joseph Godio - I'm a property manager, investor, and also partnered with a few contractors in the Valley. Let me know if I can help or if you're interested in connecting further.

Cheers,

Tom

Are you seeking properties that are currently rented out (or could be soon) or something that requires rehab?

Hi @Chritopher Schray - I know of a few REI meet-ups that would be good to go to in the Valley where you could start making some of those connections, meet other investors in the area, and potentially find your first deal. Let me know if I can be of any help to you now or in the future.

-Tom

@Tara M.

A potential client I’m working with has student housing near Lehigh University’s campus and it cash-flows VERY well; another potential client is looking at a property near Kutztown University and analyzed a very healthy cash flow there. I would highly recommend the Lehigh valley, Slate Belt or Pottsville areas for good cash flow.

I turned over my properties in NJ due to taxes and in search of better cash flow. Happy to connect more if you’d like!

-Tom

@Lea Fein I’m an investor and property manager in Bethlehem and serve the Lehigh valley. I could definitely help you. I also am partnered in a contracting company that helps investors flip.

Lehigh valley is a great spot and, even with prices going up, there are still deals. The slate belt is great too but appreciation isn’t as much as the Valley.

@Syed H. Great point - most PMs can be pretty bad at the asset management side of an investor’s portfolio and just focus on pure play property management responsibilities. I don’t know how one can be a PM and not focused on asset management AND property management

@Nicholas R Paust - with inventory tight it can be hard to gauge rent well at the moment especially when you consider factors like area, amenities, unit condition against comps, etc. If it were me, I’d be looking at Zillow and other sources to see those who are listing properties that are as similar as possible and try to see how long it’s been listed and how many applications have been submitted (at least on the Zillow Rentals side you can see this). I saw one in Bethlehem the other week that had almost 20 before noon and hadn’t been listed an entire day yet. In my experience, BP hasn’t been the best at accurately determining rent in all areas.

Also - worst case of rent is a little high? People will negotiate with you or you can reduce it if you don’t get traction on applications. Right now, I’ve been seeing 15-20 apps on vacant units that are priced with the market within a few days. Best of luck to you and feel free to DM if I can help further or if you have any questions on anything I’ve said.

@Nate Boykin I've seen some great properties (even on the MLS) that cash flow well in the slate belt, too.

25%+ CoC these days, NICE! We're closer to the 15% range on our most recent deal which we felt good about considering the appreciation in the past ~18mos.

Hey Charlie - Spot on with Scranton vs. the Valley and appreciation. When I've looked at places in Carbon County, I don't factor in any/much appreciation when calculating returns. 

My PM company is in the Valley and surrounding areas. Our areas depend on a few things but would cover about 1-1.5hr drive time from Bethlehem (where our office is) generally speaking.

@Frank Mancuso - I'm currently under contract on a MF unit in Easton that hits the numbers well (from my partners and my perspective). They're still out there but you have to be ready to jump on them quickly as many are under agreement within 1-2 weeks (or days sometimes) from the list date. However, I have seen where the CAP and CoC rates have declined over the past 12-18mos due to increased values. Some investors I know are heading up towards the Scranton area where the returns are higher.

On my property management company side, I'm working with a few owners who closed on their units just recently and found good cashflows in the ABE area. There are a few events in the area where you might find some off-market opportunities.