@Joel Betances there is definitely money to be made on these properties in Philly. The competition is incredible though. I have found that the larger rehabs are the ones where you see the best returns. Obviously there is a little more risk in those, up to a certain point. If you are redoing EVERYTHING, then there is not really anything left to surprise you.
I am not sure I would agree with the idea of a "flood" of new boarded up properties. Most board ups I have seen have been that way for quite some time, and for one reason or another, have not been sold or rehabbed yet. Like @Sheryl Sitman said, I think that this is common in almost every major city to varying degrees.
Here in Philly it all depends on the neighborhood. Distressed properties in key neighborhoods have become a hot commodity as values continue to increase in different pockets. Neighborhoods like Brewerytown and Point Breeze have experienced a significant transformation as investors have rehabbed and rebuilt distressed properties. Plenty of money to be made here if properly allocated to the right property with the right rehab.
I suspect any US city with a a lot of older housing stock has its share of distressed properties - some more than others at any given time. That spells opportunity for investors given certain conditions. If you would be able to go back 20 years in time and drive the Philly neighborhoods and observe the gradual change in certain neighborhoods and the factors that contributed to change in each area, you would have a good understanding of how the change has happened and why. Those of us doing this for a while or with good understanding of the city, real estate and economics can be quite good at picking the right locations and properties. One thing I do not understand about your question though -if the ARV makes sense what concerns do you have about it being "worth" rehabbing? The ARV kind of tells you the worth ... Anyway, the number of investors in Philly grows, the money being made here is impressive and the market has appreciated beyond what most could have imagined in such a short time. And still, the market is undervalued and there are plenty of projects to choose from. Is it easy and headache free? Absolutely not.
@Joel Betances there is definitely money to be made on these properties in Philly. The competition is incredible though. I have found that the larger rehabs are the ones where you see the best returns. Obviously there is a little more risk in those, up to a certain point. If you are redoing EVERYTHING, then there is not really anything left to surprise you.
I am not sure I would agree with the idea of a "flood" of new boarded up properties. Most board ups I have seen have been that way for quite some time, and for one reason or another, have not been sold or rehabbed yet. Like @Sheryl Sitman said, I think that this is common in almost every major city to varying degrees.