I'm new to real estate investing and live in the NY area. Some friends and I are looking to invest in the Philadelphia area. Specifically West Passyunk. We are looking to flip and think this area still has potential. I've been looking around for 3 beds and 1 bath over 1K sq ft houses for around 115K. Been having a hard time finding anything on Redfin, Zillow, etc.
I have a couple of question and would love to get everyones thoughts
1. Do you think West Passyunk is still a profitable area? (Note that I visited the neighborhood and it still looks a little rough but is close to restaurants and downtown which is a selling point)
2. Other than looking for property on our own, should we connect with a real estate agent? I believe the would have access to MLS, which could have listing that are not on these public sites.
@Ivan He West Passyunk is a decent area with easy access to major highways. It is definitely an area you could cash flow with the potential to appreciate as well. Unfortunately, $115K will not get you in. Shells (3 bd, 1 bth) are going for $125K minimum. Your rehab budget for a shell should be minimum $75K depending on the scope of work and the type of finishes. And yes to a realtor, if not, who will write your offers?
@Ivan He West Passyunk is a decent area with easy access to major highways. It is definitely an area you could cash flow with the potential to appreciate as well. Unfortunately, $115K will not get you in. Shells (3 bd, 1 bth) are going for $125K minimum. Your rehab budget for a shell should be minimum $75K depending on the scope of work and the type of finishes. And yes to a realtor, if not, who will write your offers?
Hello @Ivan He, West Passyunk (and much of the surrounding South Philly area ie. Grays Ferry, Point Breeze, Girard Estates etc.) has become a coveted area for flippers and landlords alike. $125k is the bottom line for shells in this area but my firm has sold properties in varying conditions anywhere between that price up to $185k depending on the work needed and proximity to parks/public transit. While the entry price may seem high, the area is rapidly appreciating and investors who put in more work to add third stories and setbacks are well rewarded for their efforts. If you're having trouble finding cheaper south Philly flips feel free to reach out.
@Alex Uman / @Joseph ODonovan - Thank you both for your feedback. You input is greatly appreciated and gives me insight into how much rehab and purchase will cost. Based on both of you comments, would you say this area of Philly would be better to rent than flip? What is the avg rent that's going for a 3bed 1 bath in the area?
Thank you again for any information that you can provide.
@Ivan He the south philly area for the most part is definitely best for flips over rentals. The return on investment is much better and the day on market are quite fast. People more-so look to buy homes in the area than rent them and it would take much longer to recoup your investment renting there than selling.