Philadelphia investing long-term

[David K.]

Hello BP community. You are the best!

I am looking to buy+hold in Philly. 

Do you recommend to buy in vicinity of 100K in a so-so area where the profit margins are greater but the risks are bigger too or maybe move into the higher segment (say close to 150-200k) where it is probably more stable?

Also, as a starter, would you buy a multi-family or concentrate on the singles?

Thank you in advance for all your input!

David

[Brendan Markle]

If you can find a good deal, I would def focus in on MFH's, they cash flow better than SFH, and if one side is vacant your still bringing in some income.

As far as where to focus, it depends on your personality and risk tolerance. If you don't mind having to deal with tenants who will likely test you, than focus in on the 100k area. I'm a little biased towards this option, as I have a duplex that I got for 70k that cashflows 800 a month after PITI. If you go this route you need to be firm with the tenants, and make sure you don't buy a place in a warzone.

The other option is good if you want less money up front, but more stability.  I'm a license RE agent in PA, feel free to message me if you have any questions!