Any tips with Philly, PA rentals

[Ngoc Hoang]

Hi All,

I’m new to RE investing and this forum. Happy to network with everyone! 

I’m currently doing research for buying my first out-of-state rentals in Philly, PA 

Any tips/recommendations/pros and cons with this market that you don’t mind sharing? 

Very appreciate it!

[Dave Van Horn]

Hi @Ngoc Hoang! 

Welcome to the site! 

Philadelphia is a big area, are you looking specifically within the city limits or in the surrounding suburbs as well? 

I always bought on the outskirts of the city or beyond because it was usually more affordable for the type of SFR's I was looking for, it was a market I was more familiar with, and the eviction and municipal issues always seemed easier (less busy than in the city). And outside the city, the utilities weren't lien-able either. But sometimes the taxes in the city can be less. So it's really a give and take.

BUT even though the cash flow of what I was buying was probably similar to many of the same types of buildings in the comparable neighborhoods in the city, my places in the surrounding areas of course haven't had the same type of appreciation. So it depends what you're looking for.

And it looks to me like appreciation is on the way with increasing demands (mentioned in the article below) and the redevelopment of Penn's Landing water front.

https://philly.curbed.com/2017/7/18/15982162/phila...

This city in particular can change neighborhoods almost by the block, so you really have to know where exactly you're investing.

You may want to come down to a local REIA meeting like the Philadelphia REIA Meetup or a DIG subgroup in the city and connect with other investors.

Hope this helps start to point you in the right direction!