Big City Market

Philadelphia, Pennsylvania
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Big City Market

Chris PagliaroPro Member
New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote

Hey guys!

I’m a 28-year-old guy working as a travel nurse in my hometown of Philadelphia, PA. About two months ago, I stumbled down the BiggerPockets rabbit hole, and now I’m completely hooked.

I have a lease on a townhome in the surrounding suburbs where my wife and I will be living for the next six months. Once that lease is up, I’d like to buy a property in downtown Philadelphia.

As I begin learning how to underwrite deals I find on Zillow, I feel like I'm banging my head against a wall trying to figure out whether we can fit all our furniture into a 400-square-foot, one-bedroom, one-bathroom condo with a $900 HOA fee haha.

Here’s my goal: I’d like to buy a condo in Philadelphia, live in it for a year, make some minor updates, and then rent it out when I move to another city or state for my travel nursing job. I’d use that first property as sort of a “home base.”

From there, I’d like to repeat the process by buying single-family homes or duplexes, living in each property while working my job, and then renting it out when I leave for my next assignment in another city or state.

So, after that long-winded introduction, here’s my question: Is it worth buying your first property in an investor-unfriendly market like Philadelphia? Or am I shooting myself in the foot before I even take the first step on this journey?

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Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 661 votes
1d

I wouldn't automatically rule out Philadelphia, especially if you're planning to live there first. Your first property doesn't have to be the perfect investment, but you do want to make sure it can work as a rental when you're ready to move.The $900 HOA would definitely get my attention. That's a pretty big expense, and some condo associations also have restrictions on rentals. I'd find out exactly what the HOA covers and whether there are any limits on renting the unit.

I'd also run the numbers as if you were renting it from day one. Add in the HOA, taxes, insurance, maintenance and vacancy. If the numbers still work after all of that, then you may have a good place to start.

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  • Jimmy Samaha
    Staten Island, NY · Member since 2013 · 127 posts · 61 votes
    1d

    Hey Chris, congrats on getting started. I wouldn't worry too much about whether Philadelphia gets called investor friendly. What matters is whether the specific place works on paper once you run all the numbers.

    On that condo, the $900 HOA fee is the first number I'd look at. It comes out of the rent before anything else, so I'd run rent minus HOA, taxes, insurance, and a cushion for vacancy and repairs, then see what's left. I'd also read the building's rules on renting before making an offer, since some buildings limit it and you plan to rent it out after a year.

    Since you'll be away on assignments, get a quote from a property manager on what they'd charge for a unit like that and put it in the math too. If it still works with all of that included, it's a solid first one.

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    • Chris PagliaroPro Member
      OP
      New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
      1d

      Thank you for the response Jimmy ! Yeah $900 is certainly on the steep end of a city HOA fee, I'm going to start looking at ones around 200-300 and narrow my buy box to something that makes sense from an all in monthly payment standpoint and something that if I could rent out even if it cash flows at $100 a month

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  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 661 votes
    1d

    I wouldn't automatically rule out Philadelphia, especially if you're planning to live there first. Your first property doesn't have to be the perfect investment, but you do want to make sure it can work as a rental when you're ready to move.The $900 HOA would definitely get my attention. That's a pretty big expense, and some condo associations also have restrictions on rentals. I'd find out exactly what the HOA covers and whether there are any limits on renting the unit.

    I'd also run the numbers as if you were renting it from day one. Add in the HOA, taxes, insurance, maintenance and vacancy. If the numbers still work after all of that, then you may have a good place to start.

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    • Chris PagliaroPro Member
      OP
      New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
      1d

      Great idea Denise I’ll add this into my analysis as I continue to do my search

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  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 886 votes
    1d

    Congratulations. I wouldn't worry too much about whether Philly is considered investor-friendly. I'd worry about whether the particular property is a good investment once you move out. If you're going to live there first, that can be a great way to get started. But I'd underwrite it as a rental from day one. What will it realistically rent for? What are the taxes, HOA, insurance, maintenance and vacancy? And are there any restrictions on renting it later?

    That $900 HOA would get my attention. If the numbers don't work as a rental after you leave, I wouldn't buy it just because it's your first property.

    And if you can find a duplex or small multifamily that works for your lifestyle, I’d look hard at that option. Having another unit help cover your housing costs can make a big difference. Your first property doesn’t need to be perfect; it just needs to put you in a better position for the next one.

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    • Chris PagliaroPro Member
      OP
      New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
      1d

      Thank you for the response ! I’ve definitely looked into the duplexes, alittle tougher to find in the downtown but I’ll keep looking because house hacking is such a good way to get started

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  • Michele Balady
    Dallas · Member since 2026 · 6 posts · 2 votes
    1d

    I actually think your strategy has potential, especially given the flexibility that comes with travel nursing. Building a portfolio by living in properties first and converting them into rentals later can be a sensible way to gradually build long-term real estate holdings.

    That said, I'd be particularly careful with the condo you're considering. A $900 monthly HOA fee is significant, and I'd want to understand exactly what it covers, whether there are any special assessments, and whether the association has restrictions on renting out units. Those details could make a huge difference to your future cash flow.

    I'd also look beyond the purchase price and evaluate the property's potential rental income against the mortgage, taxes, insurance, HOA fees, and maintenance.

    One thing I'd emphasize is that your first property doesn't necessarily have to be your most profitable investment. It should be a property you can comfortably afford to live in today while still making financial sense as a rental tomorrow.

    Have you considered comparing that condo with a small single-family home or duplex? It might be worth exploring both before committing.

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  • Dan NelsonBusiness Member
    Real Estate Broker · Chicago and Kansas City · Member since 2016 · 113 posts · 104 votes
    1d

    Chris, love the plan. Buying a place to live, moving on for the next assignment, and keeping the last place as a rental is one of the simplest ways to build a portfolio.

    The market label matters less than the building. A city can be called investor unfriendly and still have plenty of buildings that work. What decides it is the math on the one you buy.

    Here is the part nobody explains. For this plan, a small 2 to 4 unit building you live in often beats a condo. The other units pay rent from day one, so the building helps carry the payment while you live there. A conventional loan allows 5% down on an owner occupied 2 to 4 unit, and FHA allows 3.5% down on a two unit. With a condo, the HOA comes off the top every month, so that $900 fee is $900 of rent you never keep.

    Owner occupied loans expect you to live there about a year, which lines up with what you described. Run each deal with real rents from nearby listings and money set aside each month for repairs. You are closer than you think.

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    • Chris PagliaroPro Member
      OP
      New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
      1d

      Dan ! Thank you so much for the response. I too am looking at HOA like it's a rental payment on top of mortgage taxes and insurance so I'm trying to steer clear of anything too steep. The duplex market in Philly is pretty underwhelming but I'll continue to scope out the best I can as I do I have some time before I'll be ready to seriously buy

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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 643 votes
    1d

    Chris, welcome to real estate investing! I've been in mortgage lending and real estate for over 20 years, and I work with investors throughout Philadelphia.

    I wouldn't necessarily call Philadelphia an investor-unfriendly market. There are opportunities, but you really need to know your numbers going in.

    Personally, I'd look at a duplex or small multifamily before jumping into a condo with a $900 HOA fee. Those monthly expenses can eat up your cash flow quickly, especially once you factor in taxes, insurance, maintenance, and vacancies.

    I actually like your strategy of buying, living in the property, making improvements, and eventually converting it into a rental. Just make sure the property makes sense financially after you move out.

    Also, don't overlook your long-term financing options. DSCR loans can be a great tool as you build your rental portfolio.

    My advice is simple: Don't force your first deal. Philadelphia has plenty of opportunities, but buying the right property at the right numbers is what matters.

    Joseph V. Scorese

    Nationwide Direct Private Lender | Built Lending

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  • Chris PagliaroPro Member
    OP
    New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
    1d

    Michele thank you for commenting on my strategy! I’m sure it will change over time but I think travel nursing can be a unique way to get into real estate and I want to avoid having a monthly rent payment while I do it so this feels like a good way !

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  • Chris PagliaroPro Member
    OP
    New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
    1d

    Joseph thank you for your response happy to be here ! Definitely want to look more into DSCR as I'm learning all about real estate l! Thank you for the advice about forcing my first deal I certainly will keep it in mind thank you !!!

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  • Randy Schell
    Member since 2026 · 99 posts · 10 votes
    22h

    Chris, I like that you're thinking this through before jumping in. A 400 square foot condo with a $900 HOA is worth running the numbers on twice, since that fee comes out of your rent every month. Before you fall for one, ask the building whether there's a cap on how many units can be rented out, because that rule can quietly ruin a plan like yours.

    Randy, Bunklow

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    22h

    before buying anything, make sure you research what it could rent for and that the rent will cover the mortgage, taxes, insurance, HOA, etc.

    Also, why are you set on DOWNTOWN - which may NOT be a good place to buy a rental?

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  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 910 posts · 319 votes
    21h

    @Chris Pagliaro my team has offices in the SE PA area and we know the area well, and the condo math you're running into is real. On a lot of downtown condos the HOA eats most of what the place would rent for once you move out, so I'd run it as a rental from day one, not just as a place to live. A few things I'd check on any building: what the HOA actually covers, whether rentals are allowed at all or capped, and how healthy the association's reserves look. Some buildings have rules that would kill the plan before it starts. Small two to four unit properties in the neighborhoods just outside Center City might be worth a look too. I started by living in my first place and fixing it up, and that equity is what got me to the next one. Curious to hear which way you end up going.

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  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    11h

    I see multiple posts that state they like the scaling strategy. I am often the contrarian and I am here.

    Building and maintains a good team in any market should not be under estimated. It requires effort, Your scaling strategy basically results in a single rental in each market. I suspect it makes sense to be a STR or MTR seeing it had to be furnished for you to live in the unit. This likely implies a realtor, PM, etc in each market. Note a good PM is required regardless of the rental strategy, but believe the PM has a much bigger role on the finances of an MTR or STR (you want the best PM/co-host in your market). Or you try to self manage and you need to know the various laws and regulations in each market. I see this scaling strategy as quickly cumbersome and will soon present challenges.

    Compare your scaling plan to pick a good market (I put no weight on initial cash flow in my definition of a good market and may hold good initial cash flow against a market) and building one rockstar team. Acquire multiple units in this good market with a rockstar team. Which plan looks more likely to produce the better return? Which plan looks likely to require the less effort? I think it has to be scaling in the single market with the rockstar team.

    I know virtually nothing about the Philadelphia RE market. Is the population growing? Is it economically diversely. Are wages growing? Is new development constrained (this is what currently is negatively impacting Austin)? What is the crime rate? How are the schools? These are just some of the questions to answer in determining if it is a good RE market.

    Good luck

    1Reply
  • Chris PagliaroPro Member
    OP
    New to Real Estate · Philadelphia · Member since 2026 · 8 posts · 1 vote
    10h

    Dan I actually really appreciate the response because I was hoping for a differing opinion. It’s definitely cumbersome to go from where I’m at now (nothing) to such crazy aspirations across multiple markets.
    Maybe the better idea is to crush it in a single market before moving onto the next.
    Thank you man I really loved this response and take it to heart

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