WHY should I invest in Philadelphia (PA), Baltimore (MD)?

[Vee Vu]

Hi everyone, I'm moving to the east coast soon. I'm looking at 2 markets right now for BUY - FIX - HOLD. The pros at these markets are the housing price is very affordable and job growth is +. However, there are many cons which make me concerned:

Philadelphia, PA: population growth rate is slowing down, high crime rates, low median household income, etc.

Baltimore, MD: the population is decreasing fast, high crime rates, negative home appreciation the last 10 years, etc.

I have a saving about 100K - 150K to invest. My strategies will be buying 2 properties under 50K each, rehab, rent out, and refinance. My questions are:

1) Is it possible to get B-class properties in these areas with the money I have right now? How? Can anyone recommend any zip codes?

2) Should I still step into these markets? Any other pros and cons I did not see yet?

3) I would love to connect with investors, realtors, wholesalers, contractors, lenders in these markets. Let's hang out and learn from each other.

4) Which other markets on the east coast I should take a look beside these 2? Why?

Thank you so much!

[Joseph Scorese]

Hi @

Welcome to BP..

Investing in Baltimore previously and Philadelphia Presently;

I agree with all of your verification where the City of Baltimore current market analysis.

You might need to consider not just Philadelphia County at the Pricing Point but also with Delaware County with a solid rental market bordering Philadelphia County and strong transportation options along with Section 8 and Tenant Evictions much more favorable than Philadelphia.

Let me know if you have any questions.

Regards,

Joe Scorese

[Vee Vu]

Thanks @Mary B. , I will take a look Pittsburgh, Pa.

[Vee Vu]

Thanks @Jake Haley  for the info. I will do more research about southern Baltimore city.

[Mary B.]

Originally posted by @Susan C.:

this area is worth a look...

https://spiritnews.org/articles/bullock-fairmount-...

 Brewery Town's "West Girard Ave" is sketchy BUT the millennials are checking out the area bars...and some are living there.....I think it's a C moving to a B...

why?  Fairmount is below it and has been super strong for years...Fairmount CDC is very active which is a + for Brewerytown....Francisville is to the east maybe a touch southeast of West Girard and some millennials have taken a bet on living in Francisville.....both areas I would say are C maybe moving to B...for this with patience....if you are thinking about Section 8 this is probably a great area for you

for the OP's price range of buying 2 properties for $50K each, all in ...not gonna happen in those areas. 

Kudos,

Mary

[Account Closed]

Susan C.
It is my only city, i do it because i know the city better than most that live in it, and i manage myself with a small staff. Taxes are high, but thats relative. 2.5 percent of 15k assessment vs 1 percent of 15k assessment = 375 vs 150 per year = small difference. Lead certs are annoying, but manageable if you know how to deal with it.

[Stephen Lee]

It's hard to find any city in the US where you can buy in a B class area, all in for $50k. If you're buying using financing and saying that you only want 50k of cash in each deal than that's a different story. But if you're buying cash, it's going to be hard to find a B class home for $50k total. The "nicer" areas of Baltimore, you're looking around 150k-200k all in depending on the exact location, size, and quality of the finishes. The city is very block by block though so proceed with caution. Houses can sell for 5k and 250k less than a quarter of a mile from each other. 

[Stephen Kunen]

Yes I agree with Brian and Justin, Lehigh Valley in PA is a good area. Personally I would live in Cali instead of PA though, lol

[Chris K.]

@Vee Vu

Haven't lived in Baltimore for a while so can't comment there. But I agree with @Steve Babiak that you are unlikely to find what you are looking for in Philadelphia. For many reasons, Philadelphia is always going to be the Tier-1 Market in Pennsylvania. This is proven by the fact that there was a stupid amount of syndication/EB-5 money coming into Philadelphia for several years that allowed these new mixed-use apartments to pop up everywhere. I'm not sure where the market is now, but a developer friend of mine just took a look at a vacant lot near Fishtown that was selling for millions. It's not NYC or SF, but it's about as close as you are going to get in PA. 

Now there are properties in Philly that you can buy for $50k. But most of them I wouldn't own even if someone gave them to me for free. 

Based on what you describing, you are really looking for tertiary markets. No idea where those are in MD, but in PA that would include areas like Harrisburg, Wilkes-Barre/Scranton, Lancaster, etc. In those areas, you might be able to find what you are looking for. But note that --- even in those markets --- $50k all in for Class B is pretty tough. I would say duplexes would be your main option. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

[Joseph Wright]

@Chris K. I've sold a few properties here in Philly for $50k, That I think you would be glad to pay for.

[Austin Carroll]

Just looking at this thread, did you end up moving to either of these cities? What has been your experience so far? 

@Vee Vu