For all the Philadelphia (and surrounding) local investors, what are your thoughts on the surrounding suburbs and counties? Conshohocken is pricy, but over 60% of the population are renters - anyone see success there? Media is seeing more small businesses pop up, with also over 50% of the pop being renters.
Would love all thoughts and opinions on what boroughs have been drawing your interest.
I would consider those to be very desirable areas. Those areas will not have as high of cash flow as some of the less expensive suburbs but the potential for appreciation is greater.
If you buy right and is creative, you can get some cash flow + appreciation in Manayunk. You heard it hear first.
I'll speak for Media. Great renter population, fierce homeowner competition since the area is so desirable. I househack in Media, definitely an appreciation play for me. If you want to cashflow strong in Media you need to steal the property. Rents are coming up thanks to newer luxury apartments in the borough but generally you'd see a .6-.8% rule happening.
In Conshohocken the ratio is skewed by the large apartment complexes that are rental-only. If you exclude them, it's probably 30% rent vs. 70% own. Also, statistics for Conshy usually include all of 19428 zip code which includes parts of Plymouth Township. Lastly, the % of the population that rents is high, but the % of houses that are rented out is much lower than owner occupied. Meaning 4 tenants will pile into a house, but next door is a home owned and occupied by just one person. In that scenario 80% of the population would be renters (4/5 people), but 50% of the housing stock are rentals (1/2). Make sense?
As for cash flow, the newer/high-end construction homes won't cash flow, the older housing stock is much more feasible, but expect a meaningful amount of renovation. I think house-hacking would work great here, as there is a steady in-flux of jobs and increasing incomes. For cash-flow I would wait until a down-turn in the market. Neighboring towns such as Bridgeport, Manayunk, or maybe Ambler would cash-flow better. Norristown always looks great on paper, but can be a bigger headache as a landlord.
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