Hello, I am new to real estate investing and looking to purchase my first rental property. I have been looking throughout Delaware County and the Philadelphia area and have been wondering what other surrounding counties/towns I should be looking in. Any insight would be greatly appreciated!
@Rick Sterling Just like Eric said I would need to know more about your criteria in order to point you in the right direction. Philadelphia is very diverse in the returns it can bring in. On top of that the returns you want typically determine the areas you'll want to target.
@Rick Sterling Just like Eric said I would need to know more about your criteria in order to point you in the right direction. Philadelphia is very diverse in the returns it can bring in. On top of that the returns you want typically determine the areas you'll want to target.
Welcome! It would be helpful to give some more details on your goals / criteria for folks to be able to give productive input.
Hey Eric,
Absolutely, to give you an idea this will be my first purchase, we are looking for a cash flowing property to start our portfolio. The goal is to purchase a property that already has tenants and a rental history. Preferably this would be a multi unit property, we do not intend to live at this property however. We would like to rent out all units to maximize cash flow. As for price range we currently have the maximum set at around $300,000; We are also looking for a property that has minor rehab. Any suggestions on what areas to look?
@Rick Sterling Just like Eric said I would need to know more about your criteria in order to point you in the right direction. Philadelphia is very diverse in the returns it can bring in. On top of that the returns you want typically determine the areas you'll want to target.
Hey Dan,
I replied to your message thank you for reaching out!
@Rick Sterling Delco is a great place, though you will definitely find a wide range of purchase prices and "quality" of tenant. I don't have data to back this, but I would focus my search around the small walkable towns (e.g. Havertown, Media, Ardmore, Phoenixville [chesco], etc.) surrounding the Philadelphia area. People seem to want to be in these areas and you'll likely find more multi-family options. Not sure how far $300k will get you if that is your total budget. Cash flow in these areas may be lower to start (especially because prices are bonkers right now) but appreciation is historically quite strong.
Welcome! It would be helpful to give some more details on your goals / criteria for folks to be able to give productive input.
Hey Eric,
Absolutely, to give you an idea this will be my first purchase, we are looking for a cash flowing property to start our portfolio. The goal is to purchase a property that already has tenants and a rental history. Preferably this would be a multi unit property, we do not intend to live at this property however. We would like to rent out all units to maximize cash flow. As for price range we currently have the maximum set at around $300,000; We are also looking for a property that has minor rehab. Any suggestions on what areas to look?
Thanks,
Rick
Hi Rick,
I would start by looking at what areas have multis (in the size you are looking for) have been sold recently for $300k and under. This will give you a sense of what areas you can even get into. Then see what areas within that search you already have some knowledge about. Look at Zillow/etc for what similar apartments are renting for and see if the numbers make sense in those areas. If they do then search/ask questions about them on specifically on BP and drive them to see if you like the area.
@Rick Sterling the market is softening a bit right now and could be a good moment to jump in. It really depends on what you are looking for, your risk tolerance, your strategy, your longer term vision . . . If you are very new to this and not yet familiar with specific markets and with analyzing deals, you want to be very cautious - either learn this stuff in depth or find someone to work with that you can trust. Unfortunately, real estate is filled with less than transparent folks who pounce in certain situations. Just as important as where you end up investing is with whom you work. In the "right" market you can choose the "wrong" property or contractor . . . A budget of $300k (cash?) will give you options but you need to define it better to narrow down where.
And a note -- be careful about buying property with tenants unless you can absolutely confirm they are good paying tenants. Relying on the previous owner's ability to vet or promises about how great the tenants are can end in unpleasant surprises.