Multifamilies in Pennsylvania - Should I?

Philadelphia, Pennsylvania
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Multifamilies in Pennsylvania - Should I?

Krystal Lozano
Member since 2025 路 1 post 路 1 vote

Hi all! I'm new in the Biggerpockets forum and learning about REI. I want to ask about PA's multifamily (mainly duplex) scene in the Philadelphia and Pittsburgh areas.

Currently, I'm in my mid 20s and am starting a new job in PA. I'll be moving from California and only making a 50k  salary, but this job will cover housing and utilities. While I wait for my work history, I want to build credit and save for a down payment. By the end of 2 years, I could save 50-60k for a down payment, closing costs, and reserves. 

Does anyone in this forum have multi-family experience or a rental portfolio in PA? I'd like to accumulate enough properties to cash flow 6 figures, which would likely be a 20 year plan. 

If you have experience here, I'd love to hear it! Thank you. 馃槉

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  • Vince Scipione
    Realtor 路 Scranton / Pocono Mountains, PA 路 Member since 2020 路 99 posts 路 33 votes
    1y

    Welcome Krystal! This is a great starting point for you and welcome to PA my home state! However, I do not invest in Philly or Pittsburgh I have 12 years of experience helping investors with multifamily homes in PA. Feel free to connect with any questions! I am always looking to help 

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  • Alan AsriantsBusiness Member
    Real Estate Agent 路 Philadelphia, PA 路 Member since 2019 路 1k+ posts 路 1k+ votes
    1y

    Buy where you intend to live, where you know the areas best. Use these two years as a way to learn the lay of the land. Study what kind of properties sell, for how much, and what kind of tenants live there.

    Think with a 10year+ vision, but a decently sound property (not a 1900 single family conversion that is begging for a full gut rehab), and but in the RIGHT location. 

    I would rather lose 100 bucks a month in a solid area, than risk making 200 bucks a month out of state, class C-D, or in an area I don't fully understand. 

    best of luck

    [email protected]267-767-0111
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  • Jeremy TaggartBusiness Member
    Real Estate Agent 路 Pittsburgh, PA 路 Member since 2014 路 850 posts 路 645 votes
    1y

    @Krystal Lozano A good majority of areas still produce day 1 cash flow for multi family in Pittsburgh with a 20-25% down payment. Really only areas that don't are the higher end areas. If you have a 20 year timeline, I'd probably recommend B areas closer to the city or in the better school districts in the suburbs for the highest combined ROI over that time period.

    Right now you can expect to find decently turnkey multis for about $60-$125k/unit usually all at least hitting the 1% rule in that range. Where you fall in that range will be dictated by bedroom count per unit and the quality of the area/building itself. Somewhere in the middle is likely your best bet for a 20 year timeline.

    I have almost 50 units here myself and that's about what my portfolio is cash flowing at this point combined LTV is around 65% as loans have gotten paid down and values have went up. I started investing here in 2016 so it's been 8-9 years for me. I've done a lot of value add as well so that helped speed up the process. Along with getting started pre covid as well. Certainly doable within 20 years though for sure.

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  • Todd AndersonPro Member
    Real Estate Agent 路 Cape Coral, FL 路 Member since 2023 路 392 posts 路 175 votes
    1y

    @Krystal Lozano,

    Building a portfolio to a 6 figure is definitely a long game.  You have the time.  Use the two years to learn the area and I would suggest as soon as you can, find a duplex and start a house hack.  Try to move every year to a new small multiFamily.  Before you know it you will have a nice portfolio to continue to grow.  


    Best of Luck

    [email protected]651-492-5652
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