The Lehigh Valley has a balanced and diversified economy across unique settings, from rural to urban environments and everything in between. The Valley is a two-county, three city region (Allentown, Bethlehem, Easton) and is only ninety minutes out of major cities like New York and Philadelphia, making it a great diverse location for investors.
BUYING FOR CASH FLOW & APPRECIATION
Before you dive nose first into the market, ask yourself if you have realistic expectations regarding what's involved in buying a property. The most important thing for real estate investors is finding properties where their investment dollars will go the furthest. If you watch enough reality TV, you've probably seen plenty of shows that make buying cheap houses, fixing them up and selling them or renting them out for huge profits look like child's play.
Decide on a type of property you are most fit to invest in: commercial real estate, strip centers, retail office buildings, medical complexes, apartments, mixed use, single family homes, etc. Note: It's a good idea to have the help of a property management team or Realtor by your side when making a purchase, especially if you are still learning the ropes.
Another thing to consider before you invest in property is the actual cost versus the potential rental property ROI (return on investment). What is a good return on real estate investment? The average rental property return on investment is around six-to-ten percent after expenses, but it depends on the neighborhood and rental market in which you purchase your investment property. How much profit you should make on a rental property, though, depends largely on your goals.
A great property management team will ensure all day-to-day operations are handled as well as helping you get the best deals possible in order to grow your portfolio.