Curious about the rental market in Norristown, PA

[Mark Albini]

Been watching a property in Norristown for a while that has solid numbers. Trying to schedule a tour but curious if anyone has experience renting in this area and what it's like? The house has been on the market for a bit and it makes me wonder what might be wrong with it. 

How are the tenants you've worked with? Does the area seem like it may get some development in the next 5-10 years? 

[Keith W.]

I have a bunch of rental properties in Norristown.  What I have found interesting is that there are micro markets within Norristown.  There are some “hot” areas (as my contractor calls if for trouble areas- drugs mostly).  Pretend you are a typical local renter and look at it from their perspective.  Is there a fenced in yard where kids could play safely?   How is the off street parking?  Any local hangout spots within a block or two- bars, convenience store selling beer, soup kitchen or homeless shelter?  Drive by the area at 9:00 at night.  What’s going on?   Most areas are not trouble hot spots but they are out there. 

If you have not invested in Norristown then be advised that the local code officials are pretty aggressive. You will need to have an inspection as part of the transfer process. I plan for a minimum of $2k for code inspection work- sidewalks, window locks, trip hazards, maintenance issues (basement wall sealing, exterior brick work, painting exterior trim on windows, screens, and then all of the expected- plumbing, HVAC cert, chimney cert, electrical, and on and on.) In my opinion, these are usually things I would want to do to make the property safe and in good repair as we have a BRRR model.

Bottom line is there are good opportunities out there.  Just be educated and don’t cut your numbers too close.   While the acquisition cost is lower than surrounding areas I find them a little more difficult to manage without strict policies and systems in place- something typically learned from experience.  Good luck. 

Keith