What it’s really like to invest in Harrisburg, PA

This week, we’re heading to the capital of Pennsylvania to hear from Austin Glanzer at 717 Home Buyers, who has bought, sold, or wholesaled around 300 homes here over the past seven years and owns 25 rentals in the area.

Average home price: $255,315 (up 4.7% YoY)
Homes that sell over list price: 35%
Homes that sell under list price: 40.4%
Average rent: $1,350/month

Lay of the land: “Pennsylvania has received several government grants aimed at expanding manufacturing, and I expect that trend to continue,” says Glanzer. However, he adds, “There are some potential downsides to investing directly in the city of Harrisburg. Many people don’t realize that a large portion of the city near the river is in a flood zone, which can create additional risk and costs. I believe many of the areas surrounding Harrisburg, such as Mechanicsburg, have shown more consistent appreciation due to their proximity to major highways and strong commuter access.” This is why he recently bought a two-bedroom, three-bathroom townhouse here for $172,000, rehabbed it, then listed it for $259,999.

His advice: Weigh the pros and cons of flipping versus renting based on your market’s needs. “I decided a flip made more sense than holding it as a rental because demand from first-time homebuyers here remains very strong,” he says. He also thinks investors should keep their renovation spending in check rather than go all-out to create the perfect house. “I chose a lighter rehab instead of an overhaul to not push the price beyond what today’s buyers can afford,” Glanzer explains. “And rather than listing at the highest possible price, I priced lower than I could have to increase buyer interest and lead to a faster sale. To anyone flipping houses, focus on affordability.”

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