Where to invest in north or south philly PA?!?

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Where to invest in north or south philly PA?!?

Jason Kim
Fresh meadows, Queens NY · Member since 2018 · 9 posts · 2 votes
Hey Y’all, I have been looking in the philly PA areas to invest for s rental property. I have been doing. Ton of research and I am not sure where to invest. I looked at point breeze (south philly) and Montgomery county (north philly). I cannot decide, please help! Thanks, Jason
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James MasottiPro Member
Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
7y
Originally posted by @Jason Kim:
@Will Long

I was looking at grays ferry, point breeze in south philly and Delaware county and Montgomery county in north philly.

 Jason - I'd encourage you to research the market a bit more before diving in. Delaware and Montgomery county are south and south west of Philadelphia city and county. These areas absolutely should not be confused with an area like Point Breeze which is a neighborhood in South Philly. There are very different laws and market dynamics depending on if you are inside the city/county limits of Philadelphia or go to an area outside of Philadelphia. Delaware and Montgomery counties also have very wide swings in economic areas. You could invest in very low income housing for $30k and be dealing with challenging tenants or you could be buying in the $200-300k range and be dealing with a more middle class tenant base. 

So I think some of the first things you need to do is get a better understanding on what specific type of investing you want to do. As @Will Long mentioned there are plenty of areas to invest in Delaware and Motgomery counties, and Point Breeze is a quickly transforming area in Philly, but that doesn't necessarily mean any of these areas are going to be the right area to invest given your goals and to steal a @Brandon Turner phrase, where you want to be on the Scale of Passivity. 

Podcast Guest on Show #312
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  • Will Long
    Flipper/Rehabber · Roanoke, VA · Member since 2018 · 67 posts · 64 votes
    7y

    That’s a hard call.  Both are actually good places to begin investing.  Where exactly in North Philly and is it in close proximity to Temple University?

    1Reply
  • Jason Kim
    OP
    Fresh meadows, Queens NY · Member since 2018 · 9 posts · 2 votes
    7y
    @Will Long I was looking at grays ferry, point breeze in south philly and Delaware county and Montgomery county in north philly.
    0Reply
  • James MasottiPro Member
    Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
    7y
    Originally posted by @Jason Kim:
    @Will Long

    I was looking at grays ferry, point breeze in south philly and Delaware county and Montgomery county in north philly.

     Jason - I'd encourage you to research the market a bit more before diving in. Delaware and Montgomery county are south and south west of Philadelphia city and county. These areas absolutely should not be confused with an area like Point Breeze which is a neighborhood in South Philly. There are very different laws and market dynamics depending on if you are inside the city/county limits of Philadelphia or go to an area outside of Philadelphia. Delaware and Montgomery counties also have very wide swings in economic areas. You could invest in very low income housing for $30k and be dealing with challenging tenants or you could be buying in the $200-300k range and be dealing with a more middle class tenant base. 

    So I think some of the first things you need to do is get a better understanding on what specific type of investing you want to do. As @Will Long mentioned there are plenty of areas to invest in Delaware and Motgomery counties, and Point Breeze is a quickly transforming area in Philly, but that doesn't necessarily mean any of these areas are going to be the right area to invest given your goals and to steal a @Brandon Turner phrase, where you want to be on the Scale of Passivity. 

    Podcast Guest on Show #312
    8Reply
  • Jerome Lewis Jr
    Real Estate Agent · Philadelphia, PA · Member since 2015 · 54 posts · 34 votes
    7y

    @Jason Kim, Philadelphia has more than 60 neighborhoods. It might make sense for you to get in touch with and investor or agent that understands Philly's diversification of neighborhoods. Some areas are ideal for "fix and flip" while others are prime for "buy and holds." Much  also depends on what your personal investment strategy is, as well. Your buying strategy, ability, etc. Let me know what your plan is and I might be able to help some. Some key questions would be things like: Are you investing long distance? Property management? Financing? All-cash? Multifamily? Single-family? Active? Passive? Working by yourself? With a team? Also, Montgomery County is not North Philly. North Philadelphia is Philadelphia County. Since we're on the subject, in North Philadelphia, here are some of the neighborhoods within: Swampoodle, Strawberry Mansion, Stanton, North Philadelphia, Brewerytown, Allegheny East, Allegheny West, Hunting Park, Tioga, Nicetown, Temple, North Philadelphia West, North Philadelphia East, Glenwood, Lehigh. All could be considered North Philadelphia or parts of North Philadelphia. 

    Update: Google "North Philadelphia," Google "Montgomery County." Google will give you a pretty good indication of both of these counties / area. I just did this myself and the results were solid. 

    Here's a pretty good picture of "North Philadelphia," the circled area:



    Montgomery County:

    Which is not in Philadelphia. 

    4Reply
  • Rich O'Neill
    Contractor · Chadds Ford, PA · Member since 2015 · 567 posts · 460 votes
    7y

    @Jason Kim some very good advice above. I do all of my investing in Delaware County in parts that are just above the $30k house mark. I don't do Darby Borough, parts of Upper Darby, and Chester because they are a little too rough for me. I am in Collingdale, Lansdowne, Glenolden, Ridley, Folcroft, etc. It takes a LOT of research and boots on the ground to understand the differences between these neighborhoods. I have been in the market at least once a week for the last 4 years and I am still learning things about my market. Leverage other people, join an investor group, put boots on the ground and learn before you go too far into it. 

    5Reply
  • Andrew T.
    New York City, NY · Member since 2017 · 24 posts · 6 votes
    7y

    @Rich O'Neill what’s your experience like in Delaware County? Rental or flip in that area?

    0Reply
  • Rich O'Neill
    Contractor · Chadds Ford, PA · Member since 2015 · 567 posts · 460 votes
    7y

    Hey @Andrew T. Strictly rental for me. There are some half decent flip opportunities but thats not my business. 

    0Reply
  • Robert Stillwagon
    New to Real Estate · San Francisco · Member since 2020 · 8 posts · 2 votes
    6y

    @Jerome Lewis Jr the question you listed were really useful!

    0Reply
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