NYC Investor Looking to Scale into Philly Small Multifamily – Targeting 8–9% Caps + V

[Charles Lundquist]

Hey BP community,

I’m a NYC-based investor (currently own in the Bronx) looking to expand into Philadelphia for stronger cash flow and long-term scaling.

My goal is to build to ~$10k/month in net cash flow over the next 5–7 years by acquiring 3–4 unit properties with value-add potential and refinancing within 2–3 years.

I’m not looking for turnkey retail deals — I’m specifically targeting repositioning opportunities.

What I’m Looking For:
• 3–4 unit properties (triplex or quad preferred)
• $400k–$575k purchase range
• Target 8–9% true cap rate
• 15%+ cash-on-cash return
• $1,400+ net monthly cash flow after stabilization

Value-Add Focus:
• Add a bedroom to increase rents
• Separate utilities (gas/electric)
• Reduce landlord-paid heat
• Finish or legalize usable basement space
• Raise under-market rents
• Minor cosmetic upgrades (not full gut rehab)

I’m willing to self-manage initially to improve yield and learn the submarkets properly.

I’m currently evaluating:
• West Philly (near universities/medical)
• Select Temple-adjacent blocks
• Kingsessing / Southwest
• Manayunk / Roxborough (if numbers justify)

Would love to connect with:
• Local Philly investors actively doing small multi value-add
• Contractors experienced in bedroom conversions / meter separation
• Property managers with strong eviction handling process
• Anyone who has successfully scaled 3–4 units in Philly

I’m serious, capital ready, and looking to build relationships long-term — not just close one deal.

Happy to DM and exchange numbers.

Appreciate any insights from operators on the ground.

Charlie

DM me for my number let's connect. 

[Stuart Udis]

 If you are undertaking value add, prioritize creating equity over chasing cash flow. Cash flow is important for sustainable operations, but equity is where meaningful wealth is created. When you become hyper focused on achieving a specific cap rate, especially while excluding management costs and other responsibilities you may be assuming personally, the cap rate becomes a misleading metric. It can create a false sense of performance that does not reflect the true economics of the deal.

While I fully endorse investing in Philadelphia, I would encourage gaining a deeper familiarity with the city and its neighborhoods. Your expectations in areas such as University City, Manayunk, and Roxborough do not align with market realities. 

Another point that stood out is the strategy of adding a bedroom. Using a 1 bedroom to 2 bedroom conversion for the sake of this point, the assumption that converting a unit into a two bedroom will automatically increase profitability is a common misconception that trips up many investors. While a two bedroom typically commands higher rent than a one bedroom, the more important question is what functional compromises are required to create that second bedroom.

In many cases you can achieve a higher rent with the 2 bedroom, but a well designed one bedroom with strong flow, natural light, and usable living space may outperform a poorly configured two bedroom over time. When you factor in vacancy loss, turnover, and tenant satisfaction, the highly desirable one bedroom may ultimately generate more total revenue than a higher priced but less functional two bedroom that experiences greater vacancy.

This is not to say units should never be reconfigured. Some layouts absolutely benefit from optimization into two bedrooms. But just because a unit can become a two bedroom does not mean it should.

Today everyone wants to scale, grow or whatever terminology they want to use. This pushes investors to make decisions that are influenced by the transactional nature of the business. Money has to be turned over because too much leverage is used or investor capital needs to be returned. Very few are making sound real estate decisions, particularly with a long horizon outlook. Since you have your own capital, this is where you can excel. You may not get the rate of return you are seeking in the early years. In fact, your properties may underperform but taken over an extended period of time you can design more durable properties and units that will be in high demand. That's the winning recipe.