Looking at a buying a multifam rental property on the border of Dickinson Narrows and Pennsport, just north of Dickinson Square park. Any thoughts on that area (positive or negative)?

thank you

@Frank Robinson I personally think that is a terrific area! I own a duplex 3 blocks from Dickinson Square Park that gets $3k in monthly rent between both units. Not to mention, I bought my duplex 6 years ago, and in that time it has nearly doubled in value and I truly feel that the area stands to appreciate even more. Let us know what you decide! Good luck! 

Great, thank you. There seems to be a lot of young professionals with families around, right?

@Frank Robinson exactly! Both units at this property are leased to young professionals with kids. Good luck! 

@Frank Robinson definitely a great area to own rentals. The cost of entry may be a bit higher than when @David Vitarelli bought there but I would still recommend that area for investors.

@Frank Robinson Welcome to the market, the area is fantastic, especially if your able to find multis in that pocket. Now I will say inventory is limited, as finding multis throughout the city I compare to finding unicorns, but they do exist. You're getting wealth pushing down from Queen Village, with a combination of the popularity of Point Breeze. It's an extremely well established neighborhood, that will continue to appreciate.

Now the downsides of it are, the much higher price of entry compared to other parts of south philly (point breeze, grays ferry, girard estates), with that your rehab costs are also much higher due to the standards of the area. Also, the amount of inventory available. Being such a well established pocket, finding multis is going to be difficult because once people have them they never want to let them go. I give props to @David Vitarelli because he got a great assets that will certainly keep appreciating. 

I will say as long as your alright with paying up for the better area, and your comfortable with waiting for the right opportunity to come around then it will definitely be worth your while. I have move properties all over south philly and a few in the Dickinson Narrows. If you have any more questions certainly reach out so we can connect.

Dan Powers - Real Estate Agent

Thank you, Dan. Yeah, paying 5.5-6% cap, which seems to be the going rate now in most part of the city unfortunately :-(

@Franky Aikens I would disagree that most of the city having a cap of 5.5-6%. While you can very well see that in the areas you are pursuing, that is simply due to the grade of neighborhood you are entering. As compared to Point Breeze or Grays Ferry where you will see significantly higher caps, but again its all area based.

Dan Powers - Real Estate Agent

@Frank Robinson

I know this reply is a few weeks late but thought I’d share. I don’t own any rentals, but keep a pulse in the market. I have lived in Pennsport for 7 years and since day one had eyed up Dickinson Narrows for rental property. Prices WERE great there. In the past two years, prices have soared and rents haven’t really come along for the ride quite as much. You’ve still got a lot of long standing owners that paid $70k in 1973 so they don’t need to rent for more than $900/mo. So that keeps the price down on new rentals. As a result, I don’t like that neighborhood from a rental perspective anymore. There might still be a deal hidden in there somewhere, particularly in the south end of Dickinson Narrows, but I think that ship has sailed. My sights have been set further south towards Whitman.

Thanknyou