2% Rule in Greater Philadelphia Area

3 Replies

Hello!

I'm in the process of looking for my first multi-family rental property (2-4 units) in the greater Philadelphia area. As I'm running the numbers I'm not getting anywhere near the 2%. Instead, the math is typically coming in closer to 1%. I know it's just a rule of thumb, but Is it possible to obtain the 2% in the Philadelphia market? Or have I just not found the right deal yet?

Dave

You wont find any high demand metro area with ratios that high. Yield is a function of risk, so to find that sort of yield you need to look to much lower demand markets.

Sounds crazy but MFHs seem to sell at a premium in Philly. There are pockets of SFH opportunities if you look around. On the outskirts of some rough areas you can find higher returns like the 2% mentioned.

Speaking from experience, I wouldn't buy there again.