3rd property in Philly

[Troy Whitney]

So I just joined BP a few weeks ago and am excited to grow and learn from the collective legion of talent and experience on here.   I'm also excited to say I just bought my third property in Philly.  Now I know I may catch some skepticism here as I live in Seattle WA and so am having them professionally managed.   These aren't high class rentals, but cheap little houses that I think should cash flow nicely.  I've found a great broker agent/broker there, a few good contractors, and a what appears to be a really good management company.   I've done a fair amount of research on Philadelphia zip codes and have developed a pretty good sense of where to buy and where not to buy.   Two of these properties are in rapidly changing zip codes - one is in 19145 - South  Philly, one is not too far North of downtown 19121 and  one is a little further up  - 19132 and is in a decent, busy neighborhood and should have the best cash flow (32% cap rate).    The South Philly property I had prospective tenants lined up as soon as I posted an and just recently got a tenant that we carefully screened.  I'm hopeful the other two should be as easy to fill, though I'm still finishing up repairs on #2 and will start next week on #3.  My property manager (a pleasure to work with) tells me that as long as it's in a decent neighborhood, there's substantial demand for rentals in Philly.  Anyways - just wanted to introduce myself and see what other Philly investors come out of the woodwork. Thanks.

[Troy Sheets]

Originally posted by @Gregory H.:

I've lived in Philly for the past 3 years, and those first two zip codes are at least adjacent to gentrifying neighborhoods. You would probably be safe to walk them in the daytime. 

I can't speak for the other two zips but 19121 is Brewerytown where I've lived for the last 3+ years. My wife and/or I walk our dogs multiple times a day (and night sometimes, unfortunately) in our neighborhood, walk to local eateries and coffee shops, have beers (at night!!!) at the local watering holes (RyBrew and Sarah's Place) and walk home etc. and haven't been shot or even mugged. Not even a threatening glare! We have 3 sets of young professional tenants in our quad and in the little over a year we've owned it, they haven't been shot, killed or even glared at either! 

If you think 19121 is adjacent to a gentrifying neighborhood, you're sadly mistaken. 19130/Fairmount gentrified years ago and Brewerytown/19121 has been on the upswing for several years (realistically more as I know people that have lived and invested there for 12 years at this point) now with no end in sight. 

Sorry for the cheerleader-y rant but, when someone that obviously knows nothing about an area that you happen to live in disparages it, it's tough to keep quiet! As a disclaimer, if you think you're "safe" anywhere in a big city, you're in for a shock. Zip codes don't stop criminals unfortunately, there were some attacks this summer of pedestrians and people sitting on their stoops in the "safe" neighborhood of Fairmount/19130. And lest you think I'm painting an idyllic picture of a neighborhood, far from it. 19121 still has a ways to go but I can only speak to my experiences and those of people I know that live there.