New Yorker looking to invest in PA

General Real Estate Investing
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New Yorker looking to invest in PA

Gennaro Adamo
Member since 2019 · 7 posts · 3 votes

Hi All,

New investor here- I'm from NY and looking to BRRRR somewhere in PA and have a few questions. I'm a total newbie at this so please bear with me.

I'm looking at SFR and looking to spend no more than 80k after repairs. After some research I've narrowed down the areas to Philadelphia and Allentown. If there are better rental investment neighborhoods within a 2-3 hour drive from NYC, please let me know!

Now come my questions...

I would like to put 20% down on a property, so that leaves me with an 80k budget. Is that enough for a rental property? Should I save a little more?

Can you include the repair costs into the mortgage?

Philadelphia is big and some parts are affordable for me and some are not. Do I want to risk investing in the affordable neighborhoods like Kensington, Hartranft, etc.? Is it worth it to invest in these neighborhoods?

If anyone can provide any help with my newbie questions, I would appreciate it. Thanks!

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Sheryl Sitman
Rental Property Investor · Philadelphia, PA · Member since 2015 · 480 posts · 362 votes
6y

@Gennaro Adamo

That budget all-in in Philly will put you in some more challenging areas. You just need to have your eyes open, realistic expectations, people you can trust helping you. You are also in competition with no lack of cash buyers. The good thing about Philly is how much many neighborhoods are changing. So you can buy a place today that is likely to appreciate very nicely in the coming years.  Start walking properties that fit your budget and that will be a big step towards understanding the pieces of the puzzle.  

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  • Kevin MoyerBusiness Member
    Property Manager · Philadelphia, PA · Member since 2019 · 270 posts · 303 votes
    6y

    So essentially $40k down on a $200k home to put $40k in renovation? Those numbers can work in Philly but you’d have to be very selective on your neighborhood. Look into Francisville, Olde Kensington, and Temple university. You can find older homes in these developing areas to rehab around that range. Good luck!

    Otter Property Management4.8628 Reviews
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  • Gennaro Adamo
    OP
    Member since 2019 · 7 posts · 3 votes
    6y
    Originally posted by @Kevin Moyer:

    So essentially $40k down on a $200k home to put $40k in renovation? Those numbers can work in Philly but you’d have to be very selective on your neighborhood. Look into Francisville, Olde Kensington, and Temple university. You can find older homes in these developing areas to rehab around that range. Good luck!

     Sorry for the confusion, I'm looking to put 16k down on 80k home.

    0Reply
  • Kevin MoyerBusiness Member
    Property Manager · Philadelphia, PA · Member since 2019 · 270 posts · 303 votes
    6y

    @Gennaro Adamo got it. You might be better off in Allentown with those numbers, but there are rehab projects in philly to be had under $80k. Do you have a contractor crew in town you can trust? I would be hesitant as a first time investor to use an unknown contractor on a deal like that...

    Otter Property Management4.8628 Reviews
    WebsiteView Page
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  • Gennaro Adamo
    OP
    Member since 2019 · 7 posts · 3 votes
    6y
    Originally posted by @Kevin Moyer:

    @Gennaro Adamo got it. You might be better off in Allentown with those numbers, but there are rehab projects in philly to be had under $80k. Do you have a contractor crew in town you can trust? I would be hesitant as a first time investor to use an unknown contractor on a deal like that...

    I have a cousin in Philly who has a couple rentals and knows some contractors, so I'm not too worried about that part.

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  • Sheryl Sitman
    Rental Property Investor · Philadelphia, PA · Member since 2015 · 480 posts · 362 votes
    6y

    @Gennaro Adamo

    That budget all-in in Philly will put you in some more challenging areas. You just need to have your eyes open, realistic expectations, people you can trust helping you. You are also in competition with no lack of cash buyers. The good thing about Philly is how much many neighborhoods are changing. So you can buy a place today that is likely to appreciate very nicely in the coming years.  Start walking properties that fit your budget and that will be a big step towards understanding the pieces of the puzzle.  

    1Reply
  • Nicky Lisewski
    Rental Property Investor · Philadelphia, PA · Member since 2019 · 55 posts · 28 votes
    6y

    Where does your cousin invest?  Have you seen his properties?  

    I'm an investor and I'm also a real estate agent.  I work with investors, some from out-of-state.  The first thing I do for new clients is take them on a tour of of some properties in neighborhoods they are interested in.  There is really no substitute for boots on the ground.  Only you can decide what you are comfortable with.  

    PS:  Take a look at Jumpstart Kensington



    https://www.jumpstartkensington.org/



    https://www.jumpstartkensington.org/

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