Hey BP community!
I am looking to purchase my first SF investment property in West/South-West Philly from a local TK provider. My concern is their prices might be too high and since i will never get appreciation in those areas I will be stuck and unable even to get my money back even in 10 years ... Can anyone tell me whether these prices make sense?
2537 S.Shields 3BD/1BT- $84,000
1719 S.Ringgold, Point Breeze 3BD/1BT- $70,500
2520 S.Felton 3BD/1BT- $82,000
1635 South 55 Street 3BD/1BT- $82,000
5827 Belmar, Cobbs Creek Cove- $83,000
Note: houses are fully renovated.
Thanks a lot!
just from a cursory glance at your addresses, the property in point breeze has the most potential for appreciation. That is still a pretty rough block, as you are on the outer edges of point breeze (farthest away from the gentrifying areas). But in time I'm pretty sure it will appreciate. Heck, your PM can probably find some yuppie tenants who don't know any better to rent from you!
Thank you, @Max Tanenbaum. Does price of Breeze Point look realistic to you though?
IDK if they make sense price wise but that point breeze home was purchased for 8k in 2012. It sold for 4k in 2011 and 30k in 2005. That kind of price history might mean there are some extra challenges in the immediate area. Perhaps some more Philly folks can chime in with details about what is up with that street. Looks hairball at first 3000 mile glance. I am sure there must be something you can find with a better history at least. Good luck!
Appreciate your feedback, @Matt R.!
I lived just outside of NE philly for almost 11 years. Just on first glance the prices seem a bit high to me. I am a novice on here myself and I'm sure there are others more qualified but from being in the city and the general I would say the prices listed leave a lot to be desired.
Do you have anyone in the area who can be your boots on the ground? Good luck!
If by "fully renovated" you mean that you can move a tenant right in without having to do any more work, the Ringgold Street house seems like a good price. It is deeper into Point Breeze than abundance of high priced new construction homes but close enough that I'd say that's good value in my opinion. I'm not familiar enough with West Philly neighborhoods to comment on the other houses.
@Elliot Matyas thanks for you feedback! I do not have anyone in Philly that is why decided to get involved with the Turnkey provider. They deliver property fully renovated: new roof, new pluming, floors, kitchen, bathrooms, paint job- all is done, but basic, of course. My only concern is that it still might be way too high ... if I wont be able to hold it for over a decade ... which is possible .. I might be simply screwed!
@Antoine Joseph thank you for your input as well! would you say if properties renovated and rented pricing makes sense?
@Ekaterina Stepanova Yes if it's renovated and rented I'd say that makes sense. Definitely one you should investigate further.
@Antoine Joseph do you mean the Point Breeze one or any of them? I will definitely investigate, just wanted to get a general idea of this Provider's pricing to even consider continuing negotiations ... thanks!
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