Is Philly a good place to invest?

[Nirit Jasse]

HI I'm a new member of BP and have some cash to invest RE.  I live in LI NY and cannot afford the prices here.

Met a great realtor agent who works in Philly.  The houses in West Philly seem to be in my price range.  I like that Philly is near universities.  I understand its a more tenant friendly city..  Wondering if anyone can tell me about the market in W Pilly, near areas.  Trying to make a decision whether I should pursue this market or look elsewhere.  Thank you all for your time.  

[Ned Carey]

@Nirit Jasse welcome to BP. Many pepole will disagree with me, However generally where to invest isn't as important as specifically what to invest in. There are great deals in terrible cities and lousy deals in the best cities. 

I don't know philly well but I suspect it is like Balimore, lots of oportunity for both great deals and lousy deals.  If you are investing out of your own market it is critical to learn and understand the market. 

By investing outside of your home market you increase your risk and decrease your returns. The risk of being taken advantage of goes through the roof. One of the worst turn key rental opperators is in philly. 

[Nirit Jasse]

Ok thank you so much for your input.  I guess I have to be very careful and due a lot of due diligence.

[Julio Gonzalez]

You came to the right place for information, Nirit! 

Welcome aboard and best of luck investing!

[Alan Asriants]

Hey Nirit, I am an agent and investor in the Philadelphia area. I have also had property management experience working all over the city. West Philly can be a very diverse market and its important you understand it well.

If you ever want to talk RE, feel free to reach out anytime!

[Eric Greenberg]

I agree w Alan, ‘West Philly’ is a really broad term that could be A or D type areas. Areas close to the universities ie University City, can be a great play if thats the type of tenant you are looking for, but there are areas close to the University that are still on the come up.

More or less a long way to say that you have to really understand what your goals are and how much time/money you are looking to deploy. Having folks local who really know this area will be key as its really easy to get sold a property that may not fit your goals. 

Id also recommend once you really know your target area/property type to drive down from LI and see it for yourself and meet the folks on your team in person to make sure its exactly what you are looking for. 

[Nirit Jasse]

Thank you Eric.  I really appreciate the insight.  I will keep it heavily in mind!

[Sheryl Sitman]

@Ned Carey and @Eric Greenberg  make excellent points.  I don't agree that you decrease your returns when you invest outside of your home market. I am living proof of that  :-)  We started our investing before moving to the US and then moved and became full time 7 years ago. I live close to Philly and I run the largest group of Philadelphia Landlords on FB  - Philadelphia Landlords Connect.  But my portfolio is very diverse across multiple states. I can not understand any small investor who focuses on one market - it would be like only buying one type of stock - and we actually started to guide people to use our approach which  led to our financial freedom and the ability to have a lot of flexibility (and fun) while building wealth - in a safe, gradual approach. You will hear over and over that Philly is block by block and it is very true so you need to fully understand what you are buying - or you can mistakenly buy a bottomless hole as opposed to an investment. Your decision should be based on a mix of budget, risk tolerance, goals and resources. For example - are you capable of buying a full gut rehab and hiring contractors while living a few hours away?  Feel free to reach out. 

[Alan Asriants]

Quote from @Eric Greenberg:

I agree w Alan, ‘West Philly’ is a really broad term that could be A or D type areas. Areas close to the universities ie University City, can be a great play if thats the type of tenant you are looking for, but there are areas close to the University that are still on the come up.

More or less a long way to say that you have to really understand what your goals are and how much time/money you are looking to deploy. Having folks local who really know this area will be key as its really easy to get sold a property that may not fit your goals. 

Id also recommend once you really know your target area/property type to drive down from LI and see it for yourself and meet the folks on your team in person to make sure its exactly what you are looking for. 

 Exactly, and there can be a steep cut off from A and D. Usually property values will reflect that. It's best to "drive" the neighborhood as Eric said and talk to a local agent/investor so they can inform you on the market conditions

[Zach Edelman]

Lots of good 2-4 unit opportunities and mixed-use opportunities in Philly is what I have found from my experience as a lender/on the front lines.