Hey all, approaching the end of my first deal. I'm honing in on several houses between two markets in Northeast Philadelphia.
Fishtown is a cool little town with rents in the high $1k to low $2k. Just about everything I'm seeing needs cosmetic work on the interior: finishes, kitchen, bathroom, etc.
Port Richmond is the next town over, away from center city. Rents go for the low to mid $1k and under. Houses are priced similarly, typically a bit cheaper, however the interior is practically new.
Thoughts? Advice?? I wouldn't mind spending the time on rehab, and seeing as how I will be using a low down payment to owner occupy for a year I should have some reserve funds to do upgrades. But the thought of a move in ready place that promises appreciation would save me a lot of time and effort.
Definitely feeling the analysis paralysis of my first to-be deal!
I think buying in Fishtown with the higher rents is the better option. Cosmetic work is easy to do and not too expensive. You can completely change a space by doing purely cosmetic work. For the bathroom, for instance, repainting, re-grouting the shower walls, installing new shower head, swapping out vanity, swapping out toilet, and installing new faucets would completely transform the space and isn't too difficult to do on your own.
Once you do this light remodeling work then your unit will stand out from the others when you rent (because most of the other rentals will still be outdated).