Philadelphia Multi-Family climate

[Ben Allumbaugh]

Hello all, 

Looking for investors with experience in multi-family properties in philly, whether that be in-town investors or distance. I have a small portfolio of SFHs in different states and will be a distance investor with a family member in philly to help. 

Looking to capture the current climate, up and coming areas, danger zones, good/bad experiences, price points, rehab/contractor takes.

I am intending to use the BRRR strategy. Thanks for any info.

[Kevin M.]

I have a few multi-family units in Philly. Some commentary- 

Multi-family market is very competitive right now. I see prices creeping up faster than SFH. Off-Market deals will be your best bet

Danger zone is anything with potential zoning issues. There are a ton of illegal multi-family homes operating in the city without proper zoning and certificates of occupancy. Make sure this paperwork is all lined up or you are fully prepared to legalize it. 

Overall I’ve had good experiences. You can really see great cash flow from multis. Be aware that triplexes in Philadelphia require 24/7 monitored fire alarms with wires smoke detectors and larger sprinkler system annually certified. Build these costs into your analysis.

Contractors are one of the most disappointing parts of real estate here. The city makes it very hard to run a business and it seems impossible to find high quality reliable contractors and subs that last.

Hope this helps