Where in Philadelphia for a newbie

9 Replies

Hello Philly investors, I am ready to purchase my first property for a flip but I’m still deciding on a farm area. I’m looking to stay close to home so I was considering Mt Airy, West Oak Lane, or some where around there. Any advise would be greatly appreciated. Thanks

Mt. Airy and Germantown are both very hot right now and I'm sure the recent Inquirer article about the neighborhood will fan the flames.  Looking for numbers that make sense will always be most beneficial to your bottom line in any neighborhood so buying at the right price is key.

Hey Bob,

Congrats on making the first step.

Couple of questions if you don't mind.

That area is pretty good, especially for beginning investors. Right now that area is pretty affordable. Germantown, East Germantown are also good options. Each one of those areas have different attributes to maximize potential. Are you looking to just flip a property, house hack a live in flip? In my mind that would determine where I would invest.

Second, how do you plan on financing. Let's assume you'd like to buy cash. East Germantown is a very affordable area. If your looking to house hack Mt. Airy would be a good option with long term potential.

Also sourcing is important. If you have an off market source that's probably best right now. If not, You should get an agent that invests themselves. It'll save you the most amount of time and frustration. Hope that helps. If you have any more questions PM me. Also if you'd like to meet I'm local in the area too and invest exclusively in the NW.

Cheers,

Bishop

Hey Bishop, 

I appreciate the response. To answer your questions I am looking just to flip right now. As far as financing I have access to private money so that part is worked out. I have made contact with a wholesaler and I'm looking to speak with a few more. Your suggestion to find a real estate agent is a great one and I'm looking one at the moment. 

I have thought about Germantown as well but I'm finding that determining the ARV in Philadelphia can be tricky, I guess that's another good reason to find an agent to work with.

ditto what was said. These neighborhoods are investor friendly. if you have not practed running number I would recommend using the bigger pockets calculator and stress testing to see what effects them the most. The biggest mistake you will make on the first deal is paying too much. If the numbers don't work don't pull the trigger. I might know an agent or two who work that area. *cough cough* For your first deal I would recommend not going over 2500 sqft to reduce your risk.

Hi @Bob Williams , when you state you are looking at Mt. Airy are you talking West, East, or Cedarbrook (which historically is part of East Mt. Airy).  You also said you were considering West Oak Lane.  I would suggest you include East Oak Lane (which is next door to Cedarbrook) as well.  I think what you are looking for are neighborhoods right on the border between Montgomery County (Glenside) and Philly County.  I live on the Philly side 3 blocks from the Cedarbrook Plaza.

This entire area is a little tricky.  It is a challenge to determine market values in this area.  Take a look, you will see asking prices and sale prices all over the map.  I am not sure why.  Maybe it is the mix of the type of housing...rows right behind twins, twins right behind singles, multifamily at the ends of the rowhome blocks, etc.  

I will say, I believe that many of the asking prices in the area are exaggerated.  But I don't see this changing with the onslaught of investors in the area.  I know you have access to private money, be prepared to spend well over 100k for anything you find in these areas.

There are still some good deals around The Fairmount, Brewerytown  and Francisville. Prices have come up quite a bit for vacant land, but there is still a lot of supply. The city has recently rezoned areas to RSA5 (single family) from RM1 (multifamily). That will create new opportunity in the area just North of Center City. 

Originally posted by @Jared Forman :
ditto what was said. These neighborhoods are investor friendly. if you have not practed running number I would recommend using the bigger pockets calculator and stress testing to see what effects them the most. The biggest mistake you will make on the first deal is paying too much. If the numbers don't work don't pull the trigger. I might know an agent or two who work that area. *cough cough*

For your first deal I would recommend not going over 2500 sqft to reduce your risk.

 *Cough cough* Do you know of agent that can present such opportunities in that area for a swift deal and turnaround exit?