The growing number of investors seeing impressive returns on investments in Philadelphia is turning the city into “The City That Real Estate Investors Love.” Not surprisingly, even within this large market, rehabbers and buy-and-hold investors want to know the best areas to invest in Philadelphia.
Denise Supplee from SparkRental recently said, “I believe that the city of Philadelphia provides a great opportunity for the real estate investor, especially with properties for buy and hold (rent). First, properties can be more affordable than in the nearby suburbs. Secondly, it has become quite popular for new college graduates. Be in the middle of great culture, nightlife, and public transportation! Philadelphia is always hopping…”
After so many buyers saw impressive returns in Fishtown, Passyunk Square and NoLibs, and with fewer bargains available in those areas now, what other Philly neighborhoods are prime for investment?
Growing City, Growing Opportunities For Real Estate Investment
Philadelphia is becoming an ever more attractive city to Americans with tens of thousands moving to the city every year, including several thousand from New York City. It’s the fifth most populous city in the US and with its growing economy focused on information technology, services and education, many young adults are coming here to launch their careers – and most of them will be looking for places to rent! Redevelopment is happening in older parts of the city, yielding some ideal possibilities for rehabbers.
So, What Are The Best Areas To Invest In Philadelphia? It Depends…
Should you invest in University City or Spruce Hill? Are you more interested in minimal renovations and renting out to students or would you like to take on a bigger renovation of an older home with Victorian architecture? Would it be better to invest in Port Richmond or Washington Square West? They’re both great areas with lots of renters, but Port Richmond is more affordable and has mostly single-family residences while Washington Square West has a lot of two, three, and four-story townhouses. Are you more interested in renting to families or young professionals? The best area for you to invest in Philadelphia really depends on your personal investing goals.
Action step: start by defining your goals and ideal outcomes and work backwards from there to find the best areas to invest in Philadelphia for you. Feel free to get in touch with us to discuss this further as we have a wealth of experience throughout the city to help you draw the link between your goals and the best areas of invest in Philadelphia.
Your Total Available Financing Will Be A Factor
Of course whether you invest in Chestnut Hill, Philly’s second best neighborhood to live in (where the median home value is $540,000 and the median rent is $1500), or you invest in Grays Ferry, the most affordable neighborhood in the city (where the median home value is $140,000 and the median rent is $1400) will largely depend on how much capital you can bring to the project. Lining up your hard money lender in Philadelphia and prequalifying will help you determine what homes you can afford and how much renovation work you can fund. The lender may also help you think through what specific area in Philly would work well your investing goals and budget.
Summary
It’s a great time to invest in the City of Brotherly Love. The best areas to invest in Philadelphia depend on your personal investing goals, what you do best in real estate investing and the financing you have available.