Are you considering buying a rental property in the Poconos?
It wouldn’t be surprising if you said yes! The Poconos has become a hot spot for investors in recent years, and we constantly receive inquiries about investment opportunities here. To streamline things and provide a useful tool for investors, we’ve created this Market Opportunity Sheet.
This sheet allows us to evaluate homes for sale, share our opinions, and assess whether a property has the potential to generate enough revenue to cover its monthly expenses.
Important Disclaimer
This is not financial advice. We are not telling you to buy any property, and we make no guarantees about anything listed in this sheet. In fact, if you’re considering buying a rental property, we strongly recommend reading our article on why you probably shouldn’t.
How This Works
- The sheet includes randomly selected properties or those submitted by individuals. You can submit a request to add a property here.
- We have no involvement with any of these properties.
- We have not viewed these properties in person.
- Each property is evaluated in five minutes or less using only the sale listing and our data comparisons.
- Our opinions are based solely on the likelihood that the property can generate enough income to cover its mortgage and expenses.
Market Reality
The market is the market, and prices are dictated by market forces. If we say a property should be listed for less, it’s only to fit into our profitability metrics—not because the price is necessarily wrong. The current price may accurately reflect market demand.
Profitability Benchmark
Based on our experience, a property should generate 20-25% (and a strong emphasis on 25%) of its purchase price in annual gross revenue to have a strong chance of being profitable. With current market conditions, mortgage rates, and expenses, we recommend focusing on properties that can meet or exceed this threshold to improve the likelihood of financial success. (Spoiler Alert: They are rare)
Lastly, if you’re purchasing a rental for personal use or tax benefits, our analysis may not fully apply to your situation.