Investing in Philly / surrounding suburbs

[Matthew F.]

Hi all - I am looking for guidance from investors/residents in the Philly market and surrounding suburbs. I am looking to get started with a house hack and have cash for additional investments. I'm from NJ/NY but the NJ/NY market is too expensive and seems to be inflated. 

I'm starting to expand my search to Philly and surrounding suburbs. What are investors going for in these areas? Is it mostly cash flow or appreciation? Prices seem to be fair and taxes low, if rents are increasing steadily it could be an opportunity for both. 

Would love any and all advice/recommendations on good areas to look!.

Thanks!

[Brendan McAllister]

What's up @Matthew F., a lot of NY investors have been doing the same thing. In a general sense, Philadelphia has a much lower barrier to entry than a lot of big cities on the east coast. If you're looking to house hack, then it obviously has to be an area that you would like to live in as well. If you want a place that has both appreciation and cash flows, I would recommend both Brewerytown and Port Richmond. There are new builds popping up all over those two areas, and you can still get in at a reasonable price. The one thing you need to note is that you may need to buy a fixer-upper to really get the value you would want. Especially for a house hack, you should be looking to add in forced equity in an appreciating pocket. In my opinion, cash flows are not the #1 priority in a house hack.

 For the suburbs, alot of people look to Conshohocken. Conshy is pretty inflated at this point, but for a house hack it might not be a terrible option. Alot of young professionals live there, and Fayette street is a nice little downtown area. If Conshy is too expensive, maybe look to Bridgeport or possibly West Conshohocken. In Delco, I would say Havertown is one of the better spots to do that as well. Both Conshy and Havertown may not be the best pockets for appreciation, but the areas are nice and they are pretty safe options for the long term.