Philly- University City area: Cash flow positive possible?

Member since 2024 · 2 posts · 2 votes

Hi,
Wanted to check what cash on cash return/cashflow I should expect for units in University City area (West Powelton, Powelton Village). Inventory seems low, and I am trying to househack my first unit. However, the units I see myself living in all barely break even on cashflow. Is this to be expected at this point? Should I wait for Spring for greater inventory, or for lower rates to see if cashflow improves?

New to real estate

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Alan AsriantsBusiness Member
Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
1y
hey kenneth,
It is really difficult and any market right now to find cash flowing deals. This is especially true if you're trying to buy in the best location possible. If you want to buy in University city, I recommend staying as close to the universities possible in order to attract the best tenants and have the best room for appreciation. This does pose a challenge since that real estate is a lot more expensive than if you go more west and south. Going more west and south especially after 42nd st really changes the neighborhood.
This also depends on how are you calculate cash flow and what you're using to discount for expenses. There's no guarantee that there will be more inventory in the spring, and you should just continue to look, and when the right opportunity comes up, just grab it regardless of the timeline.
I'm an investor and an agent in this area and if you ever want to chat about the market or investing, I'm happy to do so. Reach out anytime.
[email protected]267-767-0111
Alan Asriants - New Century Real Estate 590 Reviews
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