I wanted to get everyone's thoughts about the Philadelphia real estate market? Would love to learn what people think about accumulating cash flow positive properties and building a real estate portfolio either in the city or suburbs of Philadelphia. Anything in particular that we should be aware about in this area? How is it overall for starting a real estate portfolio - it seems at least the price of entry is reasonable.
Thanks for your input!
I think if you know where to look, Philadelphia is one of the best markets in the country to start investing in real estate. If your looking for cash flowing duplexes with the possibility of appreciation I would look into these neighborhoods:
-Norristown (a little outside Philly)
I would even look into Frankford, I can always find duplexes that cashflow there.
If you have any questions about the area feel free to message me.
It's one of the two primary markets in Pennsylvania along with Pittsburgh. That typically means the market cap rate will be low since it is considered a "less risky" investment compared to the secondary and tertiary markets. But being a desirable area generally means the returns would be lower (at least on paper).
Now within Philadelphia, there are extreme ranges of desirability. There are areas in Philadelphia I wouldn't invest in even if I got the property for free. So you want to do some research there.
If you have a lot of cash (millions and millions), you can sometimes gamble by just buying and holding forever. It's been a while since I've been there, but many very wealthy individuals were buying land in Detroit with the expectation that one day it will return to its former glory. If you have millions to play with, maybe that could make them a lot of money down the line. If you don't, it seems like it's a risky strategy.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
If if you'd like to know a bit more about the Philadelphia Market, in the search bar type in Philly. There is tons about the different neighborhoods and people's predictions on up and coming neighborhoods