Hi. I'm interested in a 6-bedroom historic home in a small borough in the Philly suburbs. I'm researching the potential that it will be rented out at almost $4,000/month. Is there even a market for rents this high? Is it true that some large companies like big pharma will rent homes for their traveling corporate execs and their families for specific terms? Has anyone had luck in this part of the country with such high-end rentals? It can also potentially become a B&B if that makes the most sense. Thanks everyone.
Real Estate Agent · Philadelphia, PA · Member since 2020 · 294 posts · 245 votes
4y
@Anthony Giannetti Being from the Philly area I'd be curious to know which suburb this is located in. Depending on the area I would argue yes, in the more historic areas there is certainly a market for higher-end rentals, but I would need more details to make a better decision.
Hey @Dan Powers, thanks for asking. I'm in Ambler Borough, Montgomery County. It's more an industrially historic area (the old asbestos plant is here) than a farmhouse/colonial type town full of old gorgeous homes. How does that change things? I checked Apartments.com and couldn't find a 4+ bedroom apartment that's been rented within 10 miles for the last 2 years, which doesn't feel like a good sign.
@Scott Mac, thanks for the idea. If there was enough demand for the space, I like it and I've heard people can do well with daily rentals to film/photo/media, but I think it's too far from Philly and wouldn't be in demand enough to cover the high mortgage.
Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
4y
@Anthony Giannetti call the local zoning office and ask what the regs are regarding STR. While I know the area, I have not looked at it from an investing standpoint but I suspect it could do great as a room by room STR if that is allowed. It sounds like you are a a remote investor so do your research! Rental market in suburban Philly is hot but you need to study the very specific market you are targeting.
@Sheryl Sitman Thanks for the advice. I did consider STRs and checked into the zoning. Apparently I'd need to live on premesis which wasn't part of the plan. Additionally, it seems like a full-time job to manage an old place like this one, more like a cute B&B than a profitable rental property, which might be a good fit when I'm older, but doesn't feel right now.