Pros and Cons of the Current Philly Market

[Faith Importico]

Hit me with the pros and cons you've experienced in the Philadelphia /Greater Philadelphia market. 

[Rich O'Neill]

Biggest con for me is the regulatory environment in the city. They make it very difficult for small landlords or anyone trying to do the right thing to make money. The eviction process is very long and tenant friendly, and several other regulations are prohibitive. Suburbs are a different story for the most part, with exceptions. 

Crime in the city is another big issue for me. 

Age of the housing stock can be a pro or a con. For the most part, Philadelphia and the immediate suburbs were build up in the Early 20's through the 40's, most of which were designed with hot water heat or steam systems, knob and tube wiring, and cast iron plumbing, all of which are maintenance nightmares. If you know what you are looking for and not afraid of a big rehab, these can create opportunity others don't want to touch. 

For Pros: @Rob Lawrence hit the nail on the head. Many different types of markets exist for whatever your looking to get into within a fairly tight geography. Of the major cities on the northeast coast, values are some of the lowest for what you get. Most of the markets also didn't see meteoric rises over the last few years that are at risk of coming down if the market goes south. In fact historically values have remained relatively steady and in line with national averages, avoiding huge peaks and valleys some other markets have experienced. You might not get the same appreciation you are getting in some of the hotspots around the country, but you likely won't get the downside of that equation either. 

In short, if you're investing in SE PA, be ready for a big rehab, I argue to avoid the city, buy for cashflow and steady growth.