I have been doing research and trying to find a property in north western Philadelphia-Overbrook and Wynnfield nieghborhoods that is either a single family or 2-4 unit residential rental for under 250k.
I want a property to get me at least the 1% rule for rent. I am okay with doing minor renovations and cosmetic updates. I have been really struggling finding properties that meet that 1% rule other than total gut and remodel jobs. This summers increase in home prices has only made it more difficult.
I am now considering expanding my search area and was wondering if anyone could provide insight on the best suburbs and towns around the Philadelphia area or inside the city to find the best rent to price ratios? I am trying to focus on cash flow and get atleast 10% cash on cash returns. Thank you.
@Rob Roth I think you should be able to get a 1% property in almost any part of the city. For under 250k all in I think you could get something in or around Point Breeze or Brewerytown and possibly be able to see some potential appreciation with how those neighborhoods and the surrounding areas are currently trending. Never count on appreciation but invest in a cash flowing property in an area in the path of progress so that if appreciation happens it's a nice bonus!
@Garrett Sowle Thank you. That is some good advice. I will have to take a look at Point breeze and bewerytown. Any idea if I would be able to get closer to 1.25% rent to price? 1% really is my minimum im trying to find as close to 1.25% as possible. That is were I am able to make some signifacnt cashflow.
@Rob Roth I don't often see much better than 1% just sitting on the market, they usually go quick if there in or above that range. You can definitely do better than 1% if you add value to a distressed property and force some appreciation and drive up the rental income with the BRRRR method. Feel free to shoot me a call, text or email anytime if you would like to discuss in more detail.
Hey @Rob Roth , I would recommend taking a look into the Cobb's Creek Neighborhood. If you like Overbrook, you should like the numbers in this other part of W. Philly. I see duplex's and triplex's in Cobbs Creek that would keep you all in under 200k every day. If you need help locating these deals, let me know and I can show you past stuff I've done in these areas.
@Garrett Sowle are you really still seeing 1% properties in Point Breeze? I was under the impression it had already appreciated beyond that.
@Michael W. In Point Breeze, not really. Not just sitting on the MLS at least but it is possible to create a 1% property there by rehabbing a distressed property and increasing rents or getting higher rents by offering short term leases or furnished units.
In other areas of the city, yes. Fully renovated and rented properties at 1% or better.