Best Philly neighborhoods for rentals at 100-150K
Hey all- Once I wrap up a couple major projects in my current live-in flip I'll be in the market to buy a second rental property in Philly. I plan on tapping into my 50k HELOC for the down payment, although I would prefer to not use more than 30k for the down payment. This puts me at a cap of 150k purchase price for my next property.
I currently own my primary residence (live-in rehab) in Fishtown + 1 rental in Olde Richmond. I'm pretty familiar with these neighborhoods, but finding any value add properties in 19125 at my desired price point is difficult.
Ultimately I'm looking to hone in on Philly neighborhoods that are in my price point and that will cashflow at 1% rule. I'm noticing a lot of my developer clients building single families in Norris Square and further north by Temple Hospital. I've also been analyzing deals in Tacony/Mayfair that look pretty good on paper, although I'm not too familiar with the area. Kensington and Harrowgate- I'm hesitant because of the crime factor, but man, if people are actually paying $400K+ to live on Frankford & Lehigh, these neighborhoods could be great long term plays with a low barrier to entry in today's market.
I'm also planning on receiving criticism for essentially using leverage to buy leverage. I welcome all constructive criticism about using a HELOC as a down payment. However my plan is to use the cashflow from this property and my existing rental to pay down the HELOC in, hopefully, a matter of a few years.
Thanks
Matt
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