Buying and holding single family houses in West Chester and Phoenixville has been generating decent cashflow for many real estate investors who also appreciate the greater appreciation of homes here compared to, say, for example, Delaware County. Median house prices are higher in Chester County, but there’s greater amenities, better schools and a higher standard of living—far better opportunity to buy and hold B-level rental houses with reliable tenants.
There aren’t as many great deals to be found here, but with less competition, investors working with hard money lenders in Chester County PA have been doing very well.
Real estate investing trends in Chester County
Chester County was ranked the 4th best county in America to live in by Movoto (2014), noting especially its high median household income, low poverty rate and lower rate of unemployment. ChesCo boasts the highest rate of owner-occupied housing in the region and the highest median housing value. While these are not the most encouraging stats for many real estate investors, to some it spells opportunity. Find a house in poor shape in the better parts of Coatesville or Downington and if you can buy it at a good price from an owner who needs to sell quickly, you could do a fix-and-flip with high resale potential.
Other investors find they can buy homes in West Chester and Phoenixville in fair condition with hard money loans, do a little rehab, rent them out and refinance them. The same strategy works well for Kennett Square for those wanting to get closer to Wilmington. As the house prices are higher, these investors are typically playing more of the long game, looking at appreciation and growth in cashflow over time.
Prices get lower as you head to the western part of the county, but crime and unemployment stats go up. Increasingly investors are looking for opportunities to flip or rent out houses in Coatesville and Parkesburg, and there are bargains to be found. Some good deals can be found in the monthly Chester County Sheriff Real Estate Sales. For example, a Coatesville house in good condition with a debt owing of $287,000 was auctioned off in May 2018 for $153,000, and after a small rehab, it was sold for $230,000 in September 2018.
Finding the right financing from hard money lenders in Chester County PA
Chester County is part of the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area which is one of the top ten places to invest in the US. So there are many hard money lenders, but what would really help your real estate investment business is partnering with a lender interested in seeing you do great deals over time.
Legacy Capital works with many investors who have been increasing their holdings in Chester County. We’d like to show you how we could be your partner in financing, the right choice for you from the hard money lenders in Chester County PA.