Real Estate investors looking for returns from both cash flow and appreciation continue to love Pennsylvania for investment properties. The Keystone State is loved by real estate investors due to many factors including a strong diversified economy, booming population and natural beauty that drives year-round visitors! Easy Street Capital is proud to be a leading provider of rental properties for real estate investors looking for loans to build rental portfolios in Maryland!
Investment Property Loan Types
Pennsylvania offers various real estate markets and a range of investment property loan options. The state offers a mix of older properties with renovation potential, attracting skilled investors for restoration opportunities. Hard money renovation loans provide quick financing for property acquisition and renovation, allowing investors to”flip” the property for a fast return or pursue the BRRRR Method, by renting it out and refinancing into a long-term, low-rate DSCR loan. Pennsylvania’s real estate market presents enticing prospects for investors seeking various investment strategies.
Investment property loans can be a useful tool for real estate investors, particularly when purchasing turnkey rental properties. The term “turnkey” refers to properties that are already rental-ready and require no further renovations. Move-in ready single-family and multi-unit homes, as well as fully furnished short-term rentals, can generate both cash flow and price appreciation. Long-term DSCR loans are generally fixed rate for thirty years, allowing investors to lock in a fixed interest rate while rents and appreciation continue to increase over time. This can be a powerful way to steadily build wealth through real estate investing.
Where To Invest In Real Estate In Pennsylvania
Pennsylvania offers markets for every flavor of real estate investing strategy. Philadelphia, referred to as Philly, is the most populous city in the state and the nation’s sixth most populous state. Pittsburgh “The Steel City” is the second largest city in the state and home to Carnegie Mellon. Harrisburg is the capital of the state with a sizable population and located near Penn State University. Allentown has emerged as the fastest-growing city in Pennsylvania, already ranking as the third largest city in the state. Finally, Lake Harmony is renowned for its enchanting lakeside cabins, offering a picturesque setting for weekend getaways.
Philadelphia
Philadelphia, the largest city in Pennsylvania, is a vibrant urban center with a diverse economy encompassing sectors such as healthcare, finance, education, and technology. The city offers a wide range of employment opportunities, attracting professionals who seek rental properties. With a growing population and a thriving real estate market, Philadelphia presents an ideal environment for long-term rental investments. According to recent data from the US Census Bureau, Philadelphia has a population of 1.5 million!
This city is known as the “City of Brotherly Love,” and is a major tourist destination with a rich history. Tourists visit iconic landmarks such as Independence Hall, the Liberty Bell, and the Philadelphia Museum of Art. The city’s vibrant neighborhoods, such as Old City and Rittenhouse Square, offer a blend of historic charm and modern amenities. Philadelphia is also renowned for its culinary scene, featuring renowned restaurants and food markets like Reading Terminal Market. With numerous festivals and professional sports teams, Philadelphia provides an exciting and dynamic environment for short-term rentals and vacation homes.
With popular events like the Philadelphia International Festival of the Arts and the Made in America Festival, there is a consistent demand for short-term rental properties to accommodate visitors. Moreover, Philadelphia’s vibrant downtown area and renowned historical sites make it an enticing location for investors seeking lucrative returns in the short-term rental market.
The University of Pennsylvania, an Ivy League university, is in Philadelphia and offers a promising opportunity for real estate investors specializing in student housing. With its prestigious reputation and sizable student population, the university generates consistent demand for rental properties located near the campus. Investors who focus on strategically located properties and cater to the needs of reliable students can expect to achieve attractive returns on their investments compared to traditional long-term rentals.
Pittsburgh
Pittsburgh, a thriving city situated in the western region of Pennsylvania, possesses a population of over 302,000 residents and a diverse and healthy economy. The city’s economic sectors encompass medicine, higher education, banking, and technology. Pittsburgh is a artistic hub with notorious attractions like the Carnegie Museum of Art and the Pittsburgh Symphony Orchestra, offering a vibrant arts and entertainment scene. Its dynamic downtown area features an array of shops, restaurants, and cultural events, attracting both residents and visitors alike.
Carnegie Mellon University, located in Pittsburgh, offers a compelling opportunity for real estate investors specializing in student housing. With its esteemed reputation and population size of 15,000 students, the university generates a strong and continuous demand for rental properties. Savvy investors who strategically acquire well-located properties and cater to the needs of reliable students can expect to achieve exceptional returns on their investment.
Real estate investors can capitalize on the thriving rental market in the city, catering to both short-term and long-term rental demand. Pittsburgh’s vibrant event scene, including annual highlights like the Three Rivers Arts Festival and the Pittsburgh Vintage Grand Prix, draws visitors from near and far, creating a steady stream of rental opportunities.
Real Estate investors that have deployed capital in Pittsburgh recently have seen tremendous returns. According to Redfin, the median sales price (property value) in Pittsburgh in January 2022 was $215,000. Just two years later, as of February 2024, that number was $250,000. That’s a huge 16.2% increase in home price appreciation in a very short period. With its convenient proximity to major urban centers such as Cleveland and Philadelphia and its prime location near the scenic Allegheny Mountains, Pittsburgh stands out as an exceptional choice for real estate investors seeking a thriving market with ample opportunities for future growth and development.
Harrisburg
Harrisburg is the capital city of the state, offers a growing and diverse suburban environment with a population of over 49,000 residents. The city’s economy is multifaceted, with sectors such as healthcare, education, and government playing key roles. Additionally, being in close to the state’s government, Harrisburg attracts a substantial population of young professionals and government workers who prefer renting over homeownership. This creates a strong and educated tenant pool for real estate investors seeking to capitalize on the rental market in the area.
Real estate investors can take advantage of the thriving rental market in Harrisburg, catering to both short-term and long-term rental demand. The city’s vibrant event scene, including annual highlights like the Kipona Festival and the Pennsylvania Farm Show, attracts visitors from near and far, providing a consistent stream of rental opportunities.
Investors in Harrisburg can take advantage of the city’s steady rental market. According to the Zillow Observed Rent Index April 2024, the average market rent in Harrisburg is $1,319 per month. The market rent in Harrisburg is up this year, despite general market slowdown. Harrisburg hosts various annual events that attract visitors and offer potential for short-term rental income, such as the Harrisburg Arts Fest and Restaurant Week. With its stable rental market, increasing population, and diverse economy, Harrisburg presents an appealing opportunity for real estate investors seeking consistent cash flow and favorable returns on their investments.
Allentown
Allentown is a vibrant town situated in the Lehigh Valley region with a population of over 125,000 residents. This city benefits from the presence of major corporations such as Air Products and Olympus, which not only contribute to the city’s robust economy but also provide a solid foundation for employment opportunities. These esteemed companies enhance the local job market, attracting skilled professionals and creating a favorable environment for residents seeking stable careers.
Allentown’s downtown area offers a bustling atmosphere with a wide array of shops, restaurants, and cultural attractions, including the PPL Center, a multi-purpose arena hosting various events. The city is also home to beautiful parks and recreational areas, providing opportunities for outdoor activities and leisure, such as Cedar Beach Park and the Allentown Rose Garden.
Allentown offers real estate investors attractive investment opportunities with affordable housing prices, as the median sales price for a single-family home, per Redfin, stands at $250,500, ensuring potential for substantial returns. With a population boasting strong incomes, Allentown is a thriving market for long-term rental properties, providing a stable and profitable investment avenue. Additionally, monthly revenue of up to $1,550, as reported by Zillow, confirms the city’s lucrative potential.
Overall, Allentown is a highly desirable location for real estate investors due to its strategic positioning. Situated between major cities like Philadelphia to the east and Harrisburg to the west, Allentown offers access to diverse tenant pools, including commuters to these metropolitan areas and local workers in the thriving economy.
Lake Harmony
Lake Harmony, nestled in the picturesque Pocono Mountains of Pennsylvania, is a serene destination known for its pristine lake, natural beauty, and outdoor activities. The area offers a variety of recreational opportunities, including boating, fishing, hiking, and skiing in the nearby resorts. With its tranquil ambiance and proximity to nature, Lake Harmony provides a peaceful retreat for visitors seeking relaxation and adventure. Additionally, the town features cozy cabins, charming restaurants, and local attractions that add to its allure as a perfect getaway in the heart of Pennsylvania.
With its serene lake, scenic trails, and abundant wildlife, Lake Harmony offers an idyllic setting for a relaxing getaway. Investors seeking lucrative opportunities in the short-term rental market will find Lake Harmony appealing, as it attracts visitors from nearby cities such as Philadelphia, New York, and Allentown, who seek weekend escapes or extended vacations in this tranquil oasis. Whether guests are seeking outdoor adventures, lakeside relaxation, or simply a break from the bustling city life, Lake Harmony provides the perfect backdrop for a memorable vacation experience.
Lake Harmony, a hidden gem nestled in the scenic Pocono Mountains of Pennsylvania, offers an extraordinary investment opportunity for real estate investors. With a perfect “investability” score of 100/100, as reported by AirDNA, this market is primed for success. Investors can capitalize on the high earning potential, with the potential to generate an impressive annual income. Whether you’re looking to invest in a charming lakeside cabin or a cozy retreat, Lake Harmony promises not only a picturesque setting but also substantial financial returns for savvy investors.
Ready to Get Started?
Ready to invest in real estate in Pennsylvania? Easy Street Capital is a top lender for loans for rental properties in Pennsylvania, both hard money rehabs and long-term investment properties.
About the Author
- Fix and Flip - May 23, 2024
- Single-Family Residence - May 23, 2024
- Single-Family Residence - May 21, 2024
Stay in the Loop
Subscribe to our newsletter