Investing in Philadelphia vs. Delaware
Hello everyone! I am a new investor living and working a full-time job in Wilmington, DE, which is about 30 minutes outside of Philadelphia. I am contemplating if it would be better to invest in Philly, or in Delaware where taxes are lower. Starting off, I really want to focus on investing in one area (hopefully nearby) until I gain more experience. I plan to use the BRRRR strategy to invest in small multifamily rentals and hold them long-term.
Some of you might be asking why I don't just invest in Wilmington. My reasoning is that the economy isn't great from what I've heard. Unemployment is fairly high and most of the good deals are in low-income areas with high crime. Properties also don't appreciate very well here and appraisals come in low according to local investors that I have spoken with.
Other Delaware markets I have been looking into are Newark and Bear. Both of these areas seem to have decent economies but obviously are much smaller than a major city like Philadelphia. While Philadelphia doesn't have a booming economy like markets in Texas, Washington, and California, it is stable which I assume has its benefits. I also think that investing in a large city has numerous benefits that might outweigh the lower taxes in Delaware.
I would love to hear everyone's different perspectives. All feedback is appreciated whether you're a nearby investor with experience in these markets, or live across the country and are just speculating. Thanks in advance!