First Multifamily in Philly — Looking for Advice & Local Insight

Divyanshu Khare · 2025-08-06T16:29:02-07:00

Hey everyone, I’m in the process of buying my first multifamily property in Philadelphia and would really appreciate some insight from folks who’ve done something similar — especially in this market. A bit about me: I’m based in New York City, working full time, and this will be my first real estate investment. I’m approaching this cautiously — I want to be smart about my first deal, avoid rookie mistakes, and learn from those who’ve already walked this path. While I’m not planning to live in the property right now, I’m close enough to visit Philly regularly and stay involved. Here’s what I’m aiming for: - A turnkey (or near-turnkey) multifamily in a solid, rentable area (Brewerytown, Olde Kensington, West Poplar, etc.) - I'll be using a conventional loan (20% down) since moving frequently isn't feasible right now — though I do plan to explore FHA + house hacking down the line when I'm more flexible - My goal is for the rents to fully cover the mortgage — I’m not looking for massive cash flow right away, but I’d like the asset to carry itself and grow equity over time - I’ve looked into other markets (like Pittsburgh) for better cash flow, but Philly feels like a stronger long-term play, especially with the right location Would love to hear from anyone who has: - Bought a small multi in Philly and house hacked (or held as a rental) - Had wins or regrets in specific ZIP codes or neighborhoods (19123, 19121, 19122, 19125, 19133, etc.) - Dealt with tough tenants, repairs, turnover, or management headaches - Worked with a solid agent, lender, or PM who understands rental investing Also curious how the rental demand holds up for clean but older units in central areas — the kind of property that may not be shiny-new but still rents easily (like what we often see in NYC). If you’re local, investing in Philly, or just like helping newer investors build confidence, I’d love to connect and learn from your experience. Thanks so much in advance!

Tim W.

Member since 2024 · 65 posts · 62 votes

1y

I live north of Philadelphia so am somewhat familiar with the market. It's not a landlord friendly market, so I shied away investing there. If you're NYC based, I'd think you'll need a good PM, which will eat into your margins. I personally would not self manage Philly from out of state. Just my two cents- I do like Pitt- it's more affordable and better CF, but granted historical appreciation is certainly lower. Good luck!

1 Reply

Divyanshu Khare
OP
New York NY, USA · Member since 2023 · 9 posts · 5 votes
1y
Quote from @Tim W.:

I live north of Philadelphia so am somewhat familiar with the market. It's not a landlord friendly market, so I shied away investing there. If you're NYC based, I'd think you'll need a good PM, which will eat into your margins. I personally would not self manage Philly from out of state. Just my two cents- I do like Pitt- it's more affordable and better CF, but granted historical appreciation is certainly lower. Good luck!

Thanks so much — this is super helpful perspective. I’ve heard that Philly can be tenant-friendly, but I’m curious: was there a specific experience or law that pushed you away from investing there?

Also curious if you explored any property managers in Philly before deciding not to move forward — or if the margin just didn’t make sense from the start?

Pittsburgh is definitely still on my radar (especially for stronger cash flow), but I’m weighing that against Philly’s appreciation potential and proximity from NYC.

Would love to hear more about what you saw when you looked into both.

0 Reply
Tim W.
Member since 2024 · 65 posts · 62 votes
1y
@Divyanshu Khare the numbers rarely made sense for me when looking at deals in Philly (I get listings and off market deals). People buy for appreciation only, which is not a strategy I'm employing at this time. I don't have recs on PM- just know that adding 8-10% expense on an already low CF deal means I need to bring even more cash to the table for the deal to break even. Just not for me.
0 Reply

Alex HilemanPro Member

Real Estate Agent · Pittsburgh, PA · Member since 2023 · 225 posts · 147 votes

1y

Hey @Divyanshu Khare,

I'm curious about how you determined that Philly feels like a stronger long-term investment over Pittsburgh. Everything I've read shows Pittsburgh has stronger appreciation, but that could be my local bias.

Happy to do some comparisons of the numbers and see what would make the most sense long term!

[email protected]412-804-1171

0 Reply

Divyanshu Khare
OP
New York NY, USA · Member since 2023 · 9 posts · 5 votes
1y
Quote from @Alex Hileman:

Hey @Divyanshu Khare,
I'm curious about how you determined that Philly feels like a stronger long-term investment over Pittsburgh. Everything I've read shows Pittsburgh has stronger appreciation, but that could be my local bias.
Happy to do some comparisons of the numbers and see what would make the most sense long term!

Hey Alex!
I’m actually still exploring both markets and haven’t fully committed to Philly yet. Definitely not sold. What initially drew me in was the idea that certain Philly neighborhoods (like Brewerytown, West Poplar, or parts of 19122/19123) had already seen early signs of gentrification, and might still have room to run in terms of appreciation, especially with their proximity to Center City.

That said, I’ve seen a lot of people point out that Pittsburgh’s cash flow is stronger and appreciation has held up better than most expect, especially in the past few years. I’m definitely open to diving into a side-by-side — could be helpful for both of us. Long-term, I’m trying to find that sweet spot between reasonable cash flow and solid appreciation, especially for a first deal where I just want the mortgage covered and the asset to hold steady while I learn.

Would love to hear how you’re thinking about the Pittsburgh side!

0 Reply

Husnain Mushtaq

Member since 2023 · 5 posts · 1 vote

1y

Hi,

I did a househack in Philly in 19133,

GOt a new construction tax abatement property there in 2022, right before rates went up.

Its been alot of ups and alot of downs and I'm looking for my second house hack in philly in the next 6 months,

I am from NY and lived in my property for one year and can tell you there are alot of things that can go right and wrong,

You can ask me more questions as you see, and we can connect directly through PM.

The biggest thing I'll say is that you need to have your goals in check.

When I bought, I will always buy with the intention, if things go south, will i actually live in the property?

And that can save you a lot of time and protect you in many ways.

I needed my property to be close enough that I can check up on it and also, something that I can afford.

NY and NJ suburbs are just way too out of range.

I bought a property in philly and the thing that really made it work is the tax abatement for 10 years.

If it wasn't for that then the numbers were just not working.

I'd say, nationally and in philly, the market and gentrification have slowed and from what I see, the city overall, people are mostly moving out, but Fishtown and its adjacent areas are still growing.

19133 when i bought was full of junkies along the L, and now its one day junkies, one day clean, and one day ghost town.

The rates going up and the economy freezing have really hurt progress, but i anticpate rate cuts next year which will bring people back into the market and wanting to live in philly.

The biggest hope imo, is people getting priced out of NYC and moving here, in order to really take advantage you ahve to be close to public transit and the Amtrak or cool neighborhoods.

Now the thing is that fishtown and its adjacent neighborhoods have had alot of oversupply and not enough rentrers coming in because of more macro factors.

The people that are coming in and mostly yuppies who work remote.

I think the city has a lot of issues but so does literally every city and everywhere in the northeast.

I still think househacking is the way to go but you need to be around the cooler parts, and then the numbers need to talk.

I was looking at properties in the zips you mentioned but tbh, they feel like a nomans land between center city adn fishtown.

alot of that area has projects and alot of cool stuff but it's not the most walkable, you need to go 10mins in either direction.

Alot comes down to three things,

1) Cool factor - Will people want to live here?

2) Absorption - is the supply getting absorbed by the demand

3) Cash flow - what does my end of month look like, am i making money or losing money and my buffer?

Salaries aren't jumping in Philly, theyre already relatively high so my strategy is how do I get a property that undercuts the surrounding rents,

in the mentioned neighborhoods and your neighborhoods, its very hard to do.

Househacking is great bc you live in one uni and offset your costs and hopefully in one or two years youre able to raise rents and make a profit.

My first househack was MY HOME.

and it positioned me well after three years.

I think pre 2022, you could have been able to scale one new property per year, but i think now, youre timeline has to extend to 2 years minimum.

Other cities provide more financial opportunity, but not in the northeast.

You can check out albany ny, harrisburg, scranton, and allentown,

But despite all of it's flaws, Philly is indeed a world class city, and one of the nations largest, I think theres more opportunity in the long term than many other markets.

I think texas and georgia are other good long term markets, but i think theres too much supply, natural disaster risk and i anticipate in the next year there will be better opportunities.

My goal rn is to cop in philly in the next 6months.

Save up and cop in Atlanta or houston subrubs in 18 months after that, so a two year timeline.

This is using 5-10% conventional loans, i used fha for my first property.

1 Reply

Divyanshu Khare
OP
New York NY, USA · Member since 2023 · 9 posts · 5 votes
1y
Quote from @Husnain Mushtaq:

Hi,
I did a househack in Philly in 19133,

GOt a new construction tax abatement property there in 2022, right before rates went up.
Its been alot of ups and alot of downs and I'm looking for my second house hack in philly in the next 6 months,
I am from NY and lived in my property for one year and can tell you there are alot of things that can go right and wrong,
You can ask me more questions as you see, and we can connect directly through PM.
The biggest thing I'll say is that you need to have your goals in check.
When I bought, I will always buy with the intention, if things go south, will i actually live in the property?
And that can save you a lot of time and protect you in many ways.
I needed my property to be close enough that I can check up on it and also, something that I can afford.
NY and NJ suburbs are just way too out of range.
I bought a property in philly and the thing that really made it work is the tax abatement for 10 years.
If it wasn't for that then the numbers were just not working.
I'd say, nationally and in philly, the market and gentrification have slowed and from what I see, the city overall, people are mostly moving out, but Fishtown and its adjacent areas are still growing.
19133 when i bought was full of junkies along the L, and now its one day junkies, one day clean, and one day ghost town.
The rates going up and the economy freezing have really hurt progress, but i anticpate rate cuts next year which will bring people back into the market and wanting to live in philly.
The biggest hope imo, is people getting priced out of NYC and moving here, in order to really take advantage you ahve to be close to public transit and the Amtrak or cool neighborhoods.
Now the thing is that fishtown and its adjacent neighborhoods have had alot of oversupply and not enough rentrers coming in because of more macro factors.
The people that are coming in and mostly yuppies who work remote.
I think the city has a lot of issues but so does literally every city and everywhere in the northeast.
I still think househacking is the way to go but you need to be around the cooler parts, and then the numbers need to talk.
I was looking at properties in the zips you mentioned but tbh, they feel like a nomans land between center city adn fishtown.
alot of that area has projects and alot of cool stuff but it's not the most walkable, you need to go 10mins in either direction.
Alot comes down to three things,
1) Cool factor - Will people want to live here?
2) Absorption - is the supply getting absorbed by the demand
3) Cash flow - what does my end of month look like, am i making money or losing money and my buffer?
Salaries aren't jumping in Philly, theyre already relatively high so my strategy is how do I get a property that undercuts the surrounding rents,
in the mentioned neighborhoods and your neighborhoods, its very hard to do.
Househacking is great bc you live in one uni and offset your costs and hopefully in one or two years youre able to raise rents and make a profit.
My first househack was MY HOME.
and it positioned me well after three years.
I think pre 2022, you could have been able to scale one new property per year, but i think now, youre timeline has to extend to 2 years minimum.
Other cities provide more financial opportunity, but not in the northeast.
You can check out albany ny, harrisburg, scranton, and allentown,
But despite all of it's flaws, Philly is indeed a world class city, and one of the nations largest, I think theres more opportunity in the long term than many other markets.
I think texas and georgia are other good long term markets, but i think theres too much supply, natural disaster risk and i anticipate in the next year there will be better opportunities.
My goal rn is to cop in philly in the next 6months.

Save up and cop in Atlanta or houston subrubs in 18 months after that, so a two year timeline.
This is using 5-10% conventional loans, i used fha for my first property.

Hey — really appreciate you sharing this. Super helpful to hear from someone who actually lived the process in 19133. I’m still early in the game — this will be my first property, and I’ve been mostly looking at turnkey multis in the $350K–$400K range, aiming for rents to cover the mortgage while I learn the ropes.

The tax abatement callout is huge — I hadn't realized how much of a swing that makes until I started running numbers on new vs older buildings. I'm not planning to live in the first one, so I've been sticking to conventional loans for now, but I'd love to do the house hack + FHA move in a future deal once I have more flexibility.

Totally agree with you on the “cool factor” and walkability — a lot of areas look great on the map but don’t feel connected enough in real life. That’s something I’m watching closely.

Would love to connect more if you’re open to it — even just to stay in touch as I figure things out.

0 Reply

Luke Feliciano

Lender · Cincinnati, OH · Member since 2025 · 59 posts · 23 votes

1y

Hello Divyanshu, nice to meet you! I am a lender based in Ohio but I am originally from Northern New Jersey. I think you're on the right track with a Conventional loan and 20% down (that would allow you to not pay private mortgage insurance). You can also look into a DSCR loan which is specific to investment properties and you qualify based on the market rent covering the mortgage in a ratio (usually 1:1).

While I am not licensed in PA, my company has a whole consumer direct division that can assist. I'd be happy to share more information about DSCR loans with you. Feel free to PM me!

P.S. would love to know who the real cheesesteak king in Philly is!

1 Reply

John Lee

Member since 2026 · 4 posts · 0 votes

7mo

@Divyanshu Khare Quick question.

When you're setting up or turning over rental units in Philly, where do you usually source mattresses?

I supply like-new and new mattresses locally and some landlords use us when they need beds quickly without paying full retail.

Curious what most investors here are doing.

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First Multifamily in Philly — Looking for Advice & Local Insight

First Multifamily in Philly — Looking for Advice & Local Insight

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