What is the Best Market in the Philladelphia Area for Multi Fam?

8 Replies | Philadelphia, Pennsylvania

Hey Everyone,

I have recently been promoted in my job, and I will be moving to Philly in a month or so. I am going to rent for a year, and save money for my first investment property. I want to get into small multifamily properties and I was wondering what you think is the best market in the Philadelphia area for that investment. Any advice or insight would be greatly appreciated! Thanks for your time!

I'm feeling good about Germantown these days. Decent from a cash flow perspective and has all the ingredients for appreciation. Prices are still reasonable. The other hot neighborhoods like Fishtown are too expensive to make any sort of cash flow work.

If you do your own marketing and can create off-market opportunities then you may still be able to get good deals in the hotter neighborhoods, but I like Germantown.

I think proximity is the name of the game, and there are still some low-priced areas of Philadelphia like Kensington (which is block-to-block) and West Washington Avenue.

I am also interested in some proximity areas like Gloucester City, which are so close to Philly, nice neighborhood, and have room to grow in terms of value. Wonder what others think?

Hi @Joe Koziol,

How are you and Welcome to Philadelphia.

I would sign up for membership for the following Organizations;

Diversified Investors Group (REIA)

HAPCO - Landlord Association of Philadelphia

South Jersey Investors Group

Between the two you will become much more educated on building your power team, identifying areas to buy and understanding rentals/House Hacking.

Let me know if you have any questions.

Regards,

Joe Scorese

Originally posted by @Joe Koziol :

Hey Everyone,

I have recently been promoted in my job, and I will be moving to Philly in a month or so. I am going to rent for a year, and save money for my first investment property. I want to get into small multifamily properties and I was wondering what you think is the best market in the Philadelphia area for that investment. Any advice or insight would be greatly appreciated! Thanks for your time!

Why rent. Use FHA or put down like 5% and get duplex right away to live in one unit. You can live for free and move in a year if you wish to rent both. Just identify which area will make sense as far as your commute.

Hi @Joe Koziol welcome to Philly! There are several different neighborhoods worth investing in, but it all depends on what your goals are for the investment. For example, are you more interested in cash flow or appreciation? Will  this solely be an investment property or a house hack? 

Hey, @Max T. thanks for the response. Germantown seems to be a very interesting area. I am curious what kind of cash flow you are seeing over there? Do you have any thoughts on Germantown vs East falls?

@Joe P. I really like where your mind is at with Kensington and West Washington Ave. Those areas seem great, but do you find its too hard to find deals there now? Also, what are your thoughts on Graduate hospital? I really like the landscape there but I am wondering if it's too late to invest.

@Joseph Scorese Thanks for the heads up! As I move into the city I will definitely look to expand my network and join those groups. Hopefully, I see you sometime at one of the meetings!

@Lana Lee I really love that idea, but unfortunately, I am pressed for time and money currently. I would ideally like to live in the city my first year to really get a feel for where I want to buy. But ideally, that would be the best case scenario. 

@Elyse Choi Thanks for reaching out! Ideally, I am looking to invest in cash flow properties that I can manage on the side of my job. I may be looking to house hack after my first year of living in Philly once I settle for the area I want to be in. Do you have any recommendations on markets in the city?

@Joe Koziol ,

I agree that Germantown is a great area for rentals along with some other neighborhoods but finding good multis can be hard to find. There isn't a huge inventory of them in Philadelphia and the good ones go quick, id look into the West Philly market, that's where I see the most of the duplexes being moved. 

Originally posted by @Sam Flannery :

@Joe Koziol,

I agree that Germantown is a great area for rentals along with some other neighborhoods but finding good multis can be hard to find. There isn't a huge inventory of them in Philadelphia and the good ones go quick, id look into the West Philly market, that's where I see the most of the duplexes being moved. 

 I agree with Sam- finding good multi's in Germantown would be tough, but West Philly is great. A simple drive down Market will show you how many opportunities there are for great multi's in WPhilly. You can easily pick up a triplex or duplex for under 100k and these units are sure to generate passive income that leads to financial independence!