Hottest Philadelphia Section

[John Baker]

Hello Everyone ,

In your opinion what is the best pocket of the city for a 40-50k profit on a flip?

I’ve heard everyone talk about strawberry mansion however that pocket Of the city isn’t selling as quickly as other sections of the city.

[Ryan Tagliamonte]

Great question and if anyone has an answer I'd love to hear it. I think it comes down to less about the area in which you're flipping specifically and more so what your cost of rehab is going to be. I think if you have the right crew who can do good work at a favorable price, and you understand what your crew is going to charge you for the rehab, then you'll probably see a better profit because you'll buy right, regardless of the neighborhood. It can allow you to filter out some of the ridiculously overpriced investment properties you're seeing listed, and can allow you to concentrate more on the ones that deserve your time. I don't think that comes down to being neighborhood dependent necessarily. 

That being said Strawberry mansion is one of those areas where you may still see some fair priced properties that you may be able to purchase for under 50,000, rehab for 50-70 (which is probably an underestimate honestly) and sell for up to 150-75. Either way that's a bit ambitious, but is possible. The lower purchase price can reduce your fixed + carrying and get you closer in line with that 40-50K profit margin you're looking for, but ultimately it's pretty difficult to come by in this market. 

Curious others thoughts on this though.