Buying My First Multifamily in Philly — What Should I Know Before Jumping In?

Question

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 — trying to avoid rookie mistakes and learn from others who’ve done this before. While I’m not planning to live in the property right now, I’m close enough to visit Philly regularly and stay hands-on where needed.

Here’s what I’m aiming for:

- A turnkey or near-turnkey multifamily in a strong, rentable area (looking around Brewerytown, West Poplar, Olde Kensington, etc.)

- I’ll be using a conventional loan (20% down) — moving into the property isn’t an option right now, but I plan to look at FHA + house hacking in the future

- My goal is for the rents to fully cover the mortgage — not trying to hit massive cash flow yet, but I want the asset to carry itself while I build equity over time

- I’ve looked into other markets like Pittsburgh, which clearly has stronger cash flow, but I’m more drawn to Philly’s long-term growth and proximity

That said, I’ve had a few experienced investors bring up concerns around Philly’s tenant-friendly laws, slower eviction timelines, and stagnant rents due to high new construction volume in some zip codes. I’m mainly targeting $350K–$400K multis, not low-end rentals, so I’m wondering how much these concerns play out at the mid-tier level (clean, older units in high-demand neighborhoods).

Someone also suggested Lehigh Valley as an alternative with more landlord-friendly laws, faster evictions, and tighter housing supply — so I’m also open to exploring that if it offers a better balance of cash flow and stability for a first-timer.

Would love to hear from anyone who has:

- Bought a duplex or triplex in Philly and held it as a rental (or house hacked)

- Had wins or regrets in specific neighborhoods (especially in 19121, 19123, 19122, 19125, etc.)

- Dealt with tenant challenges, rent turnover, licensing, or repairs at the $350K–$450K range

- Worked with a solid PM, lender, or agent who understands long-distance or first-time investors

Also curious about rental demand for older, well-kept units (i.e., not luxury flips, but not falling apart either). Coming from NYC, I’ve seen that these units rent well if priced right, I’m curious if the same holds true in Philly or Lehigh Valley.

Thanks so much in advance, I would really appreciate any insight or connections. Open to learning and happy to connect.

Alan Asriants · Answer

Hey Divyanshu! Welcome to the BP community and congrats on taking the first step. I have bought quite a few duplexes in the Phila area and I am an agent as well. I like the approach right away that you are taking and that is to look for strong rentable areas!

What I will say about the neighborhoods that you mentioned is that they are not ones that I would recommend to an investor for Buy and Hold. The reason for this is that those markets are HEAVILY saturated with rentals. There was a big boom to build build build and after COVID many people have left the city leaving there an imbalance in the supply and demand pool. These larger scale projects are struggling with vacancies and there is a influx of supply in those markets, leaving the smaller landlord (you) competing against large scale buildings with all kinds of amenities.

Long story short, you don't want to be a rental listing in a market where there is a ton of competition.

Also IMO Brewerytown is not quite "there" yet and I don't know if it will be. I personally believe in buying in more established areas.

Some neighborhoods I recommend are ( in the 350-500k range for duplex): Northeast phila, roxborough (some supply constraints for 1-2 bed units but not as much as neighborhoods mentioned above), W mount airy, parts of east mount airy.

And underrated are the suburbs. I have a duplex in Bensalem, and to be honest I wish I only bought here. Its quieter, nicer streets, clean, people are well qualified, and my rental rates are much higher, transfer taxes cheaper, income tax cheaper. On top of all of that I am in a more landlord friendly area unlike philly. But its very competitive to find something and super rare, but there! Reach out anytime if you want to connect.