Multifamily in Pennsylvania

Multi-Family and Apartment Investing
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Multifamily in Pennsylvania

Arun Dharan
Investor · NC · Member since 2020 · 30 posts · 30 votes

I have 40k saved up and want to purchase a multifamily home in Pennsylvania to house hack. I am currently working on getting pre approved but was wondering what people’s thoughts are in investing in Philadelphia or should I go to Allentown?

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Andrew Schutsky
Investor · Glen Mills, PA · Member since 2019 · 185 posts · 208 votes
5y

If you’re set on investing in PA, have a look at the Harrisburg/Carlisle area as well. That area is growing dramatically (my office is in the area) and consistently shows up in the top 5-10 areas for rent growth. 

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  • Eric Johnson
    Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    5y

    This is a question for your local professionals. Call up 5 agents and 5 lenders and ask 

    4Reply
  • Jason Polykoff
    Real Estate Agent · Drexel Hill, PA · Member since 2020 · 60 posts · 10 votes
    5y

    @Arun Dharan I’m a real estate agent from the Philadelphia area and would be happy to speak with you. I’m currently helping a buyer purchase a triplex in Philly that he plans to house hack. Let me know if you want to connect. 

    3Reply
  • Andrew Schutsky
    Investor · Glen Mills, PA · Member since 2019 · 185 posts · 208 votes
    5y

    If you’re set on investing in PA, have a look at the Harrisburg/Carlisle area as well. That area is growing dramatically (my office is in the area) and consistently shows up in the top 5-10 areas for rent growth. 

    9Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    I love Philly, but if you can do the commute further out, you can probably do even better. We have a Philly REI call every THU at 8 PM on Zoom. It will be in the Events tomorrow, look for Zen and the Art of Real Estate Investing and the link will be there tomorrow for THU. We've gone all over the Philly market for investment properties, block by block.

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  • Kunal Mishra
    Flipper/Rehabber · Jersey City, NJ · Member since 2016 · 158 posts · 86 votes
    5y

    @Arun Dharan

    Philly is great for cash flow over all, not so much for appreciation, unless you are in south philly, fishtown, some areas of Port Richmond that have already gentrified quite a bit.

    Frankford, Harrowgate are two neighborhoods that are seeing a lot of rehab and constructions , again it is very block by block. I think they are good for cash flow

    On the west side I want to say Strawberry Mansion could see some gentrification in the coming years, but you really need to get in touch with a few local agents and PMs who can give you a more realistic feel for the neighborhoods.

    Good Luck

    Kunal M.

    2Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    @Arun Dharan

    If you plan to house-hack, it really matters more on personal preference especially if you plan to live there(house-hack).

    Philadelphia and Allentown are both drastically different cities.
    Both can be very large cities as well so you really should be talking about neighborhoods instead of the city in general.

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  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Arun Dharan I can’t really comment on that market. Call some reputable real estate agents or meet some other local investors in your area. 
    @Jason Polykoff Nice! What do you like about that market? Do you mainly focus on investment properties?

    @Andrew Schutsky Great feedback. Great reason to be on Biggerpockets 👍

    @Jonathan Greene Interesting! Thanks for sharing. 
    @Kunal Mishra Hey Kunal, what size assets have you invested in? Are you active in the PA area?

    @Basit Siddiqi Great points. Thanks for sharing these. You definitely want to make sure you like the neighborhood if you will be house hacking.

    0Reply
  • Matt M.
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    @Arun Dharan

    Which ever area you choose, make sure to find a totally trusted person to find you decent areas. There are super rough areas in both. I’m 25 mins from Allentown and don’t care to invest there.

    1Reply
  • Steve K.
    Specialist · PA · Member since 2016 · 143 posts · 71 votes
    5y

    @Arun Dharan You mentioned house hack, sounds like you are moving from CA to PA?

    Like most mentioned here, they are totally different cities. Allentown has neighboring cities like Hellertown, Whitefield, Bethlehem which are good.

    Allentown and Philly are about an hour away driving. LVI Airport is the most convenient place to fly out, in my opinion.

    Also note the Philadelphia has higher local earned income taxes, something you might want to look at.

    1Reply
  • Jason Polykoff
    Real Estate Agent · Drexel Hill, PA · Member since 2020 · 60 posts · 10 votes
    5y

    @Justin G. Thanks for the message. My focus is Philly and the greater Philly area (surrounding counties). Philly has a lot of changing and developing pockets. There are areas that you can get in that are affordable now and growing exponentially. There are also areas in the surrounding counties that are going through the same development. As an agent, I work with anyone who is looking to buy or sell a home,whether they’re an investor or not. However, I chose to work for a private real estate group because the broker is an investor and I knew he would understand my passions.

    I noticed you invest in Indy. I lived in Indiana for 5 years. What areas do you invest?

    2Reply
  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Jason Polykoff Hey Jason, thanks for the reply. Working as an agent can be fantastic experience. You really get to see what’s going on in the market and get to meet property owners. 

    That’s awesome you used to live in Indy. When did you move? I have been here my whole life. I invest in different areas but try to stay away from the East side of Indy. Overall, Indy is a great city and we are focused on buying large multifamily assets in IN, KY, TN, and AL. 

    0Reply
  • Jason Polykoff
    Real Estate Agent · Drexel Hill, PA · Member since 2020 · 60 posts · 10 votes
    5y

    @Justin G. From 2014-2019 I lived in Richmond, IN, where I worked at a college. However, my wife and I would venture into Indy virtually every weekend despite it being over an hour away. In fact, we chose a hospital in Carmel for the birth of our boys. You can imagine what that drive was like down 70 when she went into labor, haha. In 2019 we decided to move back to Philly, which is where I grew up.

    I’ve been thinking a lot about investing out of state and I have been thinking heavily about Indy, Cincy, Dayton and Columbus. What are your thoughts on those markets?

    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Arun Dharan

    You’ll have to owner occupy the unit to house hack, are you planning on moving from San Fran?

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  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Jason Polykoff Awesome! I’m very familiar with the Carmel area. 

    I haven’t really looked too hard in OH. I would say if the numbers make sense then sure. I just have not seen any opportunities there but I would stick to B areas for OH.

    I’m not far so if you ever need somebody to tour a property or do a drive by on something, don’t hesitate to reach out. I would be happy to help with anything I can. 👍

    1Reply
  • Arun Dharan
    OP
    Investor · NC · Member since 2020 · 30 posts · 30 votes
    5y

    @Marc Rice yeah I am moving to Philadelphia for work

    2Reply
  • Kunal Mishra
    Flipper/Rehabber · Jersey City, NJ · Member since 2016 · 158 posts · 86 votes
    5y

    @Jason Polykoff

    I would recommend Columbus over other cities in Ohio, it has the highest population growth in the state and highest expectations on appreciation in the next 5 yrs.

    Yes, cash flow will not be as good as Cleveland , Dayton or Toledo .. also price point point is lower.

    So all depend on what strategy you have.

    3Reply
  • Kunal Mishra
    Flipper/Rehabber · Jersey City, NJ · Member since 2016 · 158 posts · 86 votes
    5y

    @Justin G.

    I just started this year and currently have one triplex in Harrowgate and a duplex in Frankford

    2Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Arun Dharan Arun, I think that is a brilliant idea! In fact, this is exactly how I started my journey years ago. 

    However, there are THREE MAIN things you need to do to ensure that you buy the right deal.

    1. Make sure Crime is low

    2. Push for a 1% Rent To Value [RTV] ratio if you can

    3. Strive for > 50% Renters To Owners [RTO] ratio

    You can learn more about this here: https://www.biggerpockets.com/...

    Good luck on the #HouseHack! Come back to tell you your story in a 1 year or 2 after you've purchased it to inspire others!

        4Reply
      1. Arun Dharan
        OP
        Investor · NC · Member since 2020 · 30 posts · 30 votes
        5y

        @Ola Dantis thank you! This is good for me to start and will definitely share my story on how this goes during a pandemic

        1Reply
      2. Ola Dantis
        Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
        5y
        Originally posted by @Arun Dharan:

        @Ola Dantis thank you! This is good for me to start and will definitely share my story on how this goes during a pandemic

         My pleasure!!! 

        1Reply
      3. Ari Hadar
        Investor · Member since 2020 · 401 posts · 86 votes
        5y
        Originally posted by @Ola Dantis:

        @Arun Dharan Arun, I think that is a brilliant idea! In fact, this is exactly how I started my journey years ago. 

        However, there are THREE MAIN things you need to do to ensure that you buy the right deal.

        1. Make sure Crime is low

        2. Push for a 1% Rent To Value [RTV] ratio if you can

        3. Strive for > 50% Renters To Owners [RTO] ratio

        You can learn more about this here: https://www.biggerpockets.com/...

        Good luck on the #HouseHack! Come back to tell you your story in a 1 year or 2 after you've purchased it to inspire others!

            Why most of the house need to be rentals? Do you mean the metro, city or neighborhood? 

            1Reply
          1. Ola Dantis
            Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
            5y
            Originally posted by @Ari Hadar:
            Originally posted by @Ola Dantis:

            @Arun Dharan Arun, I think that is a brilliant idea! In fact, this is exactly how I started my journey years ago. 

            However, there are THREE MAIN things you need to do to ensure that you buy the right deal.

            1. Make sure Crime is low

            2. Push for a 1% Rent To Value [RTV] ratio if you can

            3. Strive for > 50% Renters To Owners [RTO] ratio

            You can learn more about this here: https://www.biggerpockets.com/...

            Good luck on the #HouseHack! Come back to tell you your story in a 1 year or 2 after you've purchased it to inspire others!

                Why most of the house need to be rentals? Do you mean the metro, city or neighborhood? 

                 Do you mean renters? I am referring to Renters. Sorry I don't understand your question?

                Also, maybe you can read the BiggerPocketss blog above to better understand what I am referring to? Thanks, Ola 

                1Reply
              1. Dante Balassone
                Rental Property Investor · Philadelphia, PA · Member since 2020 · 4 posts · 1 vote
                5y

                @Jason Polykoff Hi Jason. My wife and I are searching in the greater Philly area for our first (house hack) investment purchase. We are renting in Wissahickon and want to take the leap into REI but we are pretty new to it and the area. We have been struggling to find a property with a good balance between price and crime rate. Any insight would be greatly appreciated!

                1Reply
              2. Jason Polykoff
                Real Estate Agent · Drexel Hill, PA · Member since 2020 · 60 posts · 10 votes
                5y

                @Dante Balassone I'd be glad to help you and your wife! Are you looking for a SFH or a M-F? Do you want to stay near Wissahickon, or are you open to more areas? Have you been pre-approved for a loan?

                1Reply
              3. Remington LymanBusiness Member
                Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
                5y
                Originally posted by @Kunal Mishra:

                @Jason Polykoff

                I would recommend Columbus over other cities in Ohio, it has the highest population growth in the state and highest expectations on appreciation in the next 5 yrs.

                Yes, cash flow will not be as good as Cleveland , Dayton or Toledo .. also price point point is lower.

                So all depend on what strategy you have.

                Yeah, Columbus, Ohio appreciation is through the roof!

                [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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