Lehigh Valley Investment & Foreclosure Properties
Lehigh Valley PA Investment & Foreclosure Properties including Allentown, Bethlehem and Easton
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More Real Estate Info

Long term (Buy & Hold) Lehigh Valley Real Estate Investors

There are many financing strategies used by Lehigh Valley long term real estate investors. In addition to those discussed here, please see the Financing section or contact us to discuss the strategy that may be best for you.

The long term (buy and hold) real estate investor is generally looking to start or diversify their investment portfolio by committing their money to a real estate investment. The Lehigh Valley long term investor sees the potential immediate, mid-term and long term returns provided by owing real estate.

The immediate (year of purchase) benefits of buying real estate are…

  • Revenue (rent received) to help pay for mortgage cost, insurance, taxes, etc.
  • Tax benefits (depreciation, mortgage interest & expenses deductions)
  • Property value appreciation in a normal or up (sellers's market)

The mid-term ownership spans the period from year #2 through to when the investor's equity in the property is greater than the owner's 20% investment in the property generally required by the bank.

The initial mid-term benefits are the same as those of the immediate or year of purchase benefits.

During the mid-term period the Lehigh Valley investor uses both the money from rent to pay mortgage principle and property value appreciation to increase the investor's equity percentage. Over time the owner equity increases from 20% toward 100% ownership.

The owner may choose to make an additional "principle only payment" with the regular mortgage payment to save on interest paid to the bank over the life of the mortgage and increase equity. This may be done when interest paid on money in a savings account, CD or other savings instrument is less than the interest paid on the mortgage.

In the mid-term ownership period access to the amount of owner equity greater than 35% may be gained by refinancing the property to obtain cash for additional investment.

Another benefit to the mid-term investor is the "good faith" they earn from banks and lending institutions by demonstrating successful management of the investment property. As in most other professions, a good resume is a great recommendation to take-on more challenging real estate investments.

Long term ownership encompasses all the benefits previously mentioned together with a positive cash flow that can contribute to the Lehigh Valley investor's monthly income. When managed properly, a real estate property held for the long term is much like the "Ever-Ready bunny" that just keeps giving and giving and giving...

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Available Foreclosure Properties in Lehigh Valley

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Questions about Long Term Investing in Lehigh Valley Real Estate? Give us a call or contact us today.

Joe Finnerty, REALTOR®, ePRO
Joe Kaminski, REALTOR®, SRES
484-241-1641
610-392-1587
www.lehighvalleyhomesonline.com

BHHS Fox & Roach REALTORS, Lehigh Valley PA
3101 Emrick Boulevard, Suite 101
Bethlehem, PA 18020
Main Office: 610-865-0033
FAX: 610-974-9430

Information is deemed reliable but not guaranteed. We are REALTORS® in the Commonwealth of Pennsylvania and affiliated with BHHS Fox & Roach REALTORS. We are not financial planners, tax advisors, or attorneys.

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Lehigh Valley Investment Properties serves the following areas Bethlehem, Allentown, Easton, Forks Township, College Hill, Plainfield Township, Washington Township, Bethlehm Township, Bangor, Bushkill Township, Nazareth, Tatamy, Stockertown, Hellertown, Lower Saucon, Freemansburg, Pen Argyl, Williams Township, Palmer Township, Hanover Township, Walnutport, Lehigh Township, Wilson, Wind Gap, Mt. Bethel, Portland, Roseto, Allen Township, Northampton, Bath, Moore Township, Catasauqua, Whitehall, Macungie, Lynn Township, Slatington, Milford, Emmaus, Coopersburg, Center Valley, Springfield Township, Weisenberg, Orefield, Trexlertown, Breiningsville, Upper Saucon, and Saucon Valley. Lehigh Valley Foreclosures, Sheriff Sales, HUD Homes, Short Sales, and Auctions.