Best Cash Flow Rental Area In Philadelphia

7 Replies | Philadelphia, Pennsylvania

Hey BP Community,

I was curious to see what the opinion is on where you can find the best cash flow opportunities in Philadelphia using the BRRR method. From my experience and research I would have to say that I have seen some great numbers in the Grays Ferry, Germantown and Cobbs Creek neighborhoods. What's your opinion? I'm looking forward to hearing some feedback on this topic. Thanks guys!

@Joseph Ems I could have sworn you asked this exact same question a few days ago, in a thread all its own? Can't seem to find it but I feel like I read this question...word for word...a week ago.

Regardless, I don't see much cash flowing in Philly these days. For mom and pop investors, the deals are probably gone. Look outside of Philly in C and B neighborhoods for opportunities.

I sold my Philly townhome to a NY investor at the end of 2017. Price was 207,000, he paid all cash, and the max rent is $1400 a month. Even if the area appreciates (7th and Washington), it won't magically become a $2000 a month property. Doesn't hit the 1% rule, but he bought it. That's the kind of influx we're dealing with.

I just bought in Gloucester City, NJ...lots of additional costs (flood ins, two water companies, township requirements, etc.) and high taxes, but I'm renting a duplex for $1900 a month and I paid just over 100k. OK neighborhood, close proximity to Philly...thinking short term cash flows with long term appreciation (hopefully) and using cash flows to hold and BRRR as needed.

Thanks for the feedback Joe! I think you might be thinking of my post asking about neighborhood classes. 

I still see a lot of promise for cash flow in Philadelphia. There are definitely neighborhoods where you can find cash flowing rentals. I'm just searching for the neighborhoods with the BEST cash flow opportunities.  

I would agree that the surrounding suburbs do have some really great cash flow numbers if you can buy in at the right number though. I've recently seen some very tempting deals in Delaware County. 

@Joseph Ems I think there are cash flowing neighborhoods, they are just most likely class C-D properties. Cobbs Creek is definitely a neighborhood I'd have on that list. To add to it, I would include the area in the Temple U vicinity. Obviously gets tougher as you get closer to campus. 

There is still a lot of cash flowing areas if you are patient . Deals are hard to come by.

Example: Currently in germantown if you are in zip code 19144 -- get a house for 60k and fix it up add 40K. You can rent it out for 1250 all day long.  

19141 -- If you get a house for 85K and there are plenty you can pull 1100. There are a few deals even on craiglist where someone is selling a package at 100K for a house in this neighbourhood and is pulling 1300. 

So define what you mean by cash flow and see the returns. Some people look for 20 percent. Some people look for 9 percent. It all depends on what your expected return is and what you are happy with.

Granted the deals of getting a house for 45K and getting 900 are gone.

I just finished a duplex in 19140 . I am all in for 90K and i am asking 1000 a floor and i already have applicants.  So it depends. 

So just look at houses patiently the market is already correcting with people dropping prices. Like they say a C and D neighborhood looks good in a rising market and when the tides turn its interesting to see who will be left with no clothes on.

Cheers

Amit

Originally posted by @Amit Shenoy :

There is still a lot of cash flowing areas if you are patient . Deals are hard to come by.

Example: Currently in germantown if you are in zip code 19144 -- get a house for 60k and fix it up add 40K. You can rent it out for 1250 all day long.  

19141 -- If you get a house for 85K and there are plenty you can pull 1100. There are a few deals even on craiglist where someone is selling a package at 100K for a house in this neighbourhood and is pulling 1300. 

So define what you mean by cash flow and see the returns. Some people look for 20 percent. Some people look for 9 percent. It all depends on what your expected return is and what you are happy with.

Granted the deals of getting a house for 45K and getting 900 are gone.

I just finished a duplex in 19140 . I am all in for 90K and i am asking 1000 a floor and i already have applicants.  So it depends. 

So just look at houses patiently the market is already correcting with people dropping prices. Like they say a C and D neighborhood looks good in a rising market and when the tides turn its interesting to see who will be left with no clothes on.

Cheers

Amit

 How did you find that deal in 19140?