You’ve been told where to buy in Philadelphia. Many real estate investors are transparent, telling other investors what neighborhoods they’ve targeted and had the most success in flipping and buy-and-hold. The problem is the more we’re told where to buy in Philadelphia, the fewer homes are available in those neighborhoods. What are the up and coming alternatives to the investment-saturated neighborhoods?
You want to flip a house in Point Breeze, but would you consider Grays Ferry?
Point Breeze was one of Philadelphia’s hottest real estate markets in 2017. Investors have been seeing great returns on both house flipping and buy-and-hold investments. Just west, though, great things are also starting to happen in Grays Ferry. The Point Breeze median house price of $260,000 drops to $108,000 in Grays Ferry, but the median rent is comparable, $1430 versus $1360. So if you’re having a hard time finding a good deal on a fixer-upper in Point Breeze, it might really pay off to see what you can find in Grays Ferry.
You want to rent out luxury condos/townhouses in Rittenhouse Square, but would you consider investing in Spruce Hill?
One of the most envied areas to live in, Rittenhouse’s high-rise residences are filled with some stunning condos and luxury apartments. Investors dream of buying and renting out homes in this part of the city, but why not drive west on Walnut Dr. to the other side of the University of Pennsylvania and consider the condos and townhouses in Spruce Hill? The price per square drops nearly in half, but the rental rates are sometimes comparable or just 10 to 20% less. It’s much easier to cashflow a property in these neighborhoods than you ever could in the Rittenhouse Fitler Historic District.
You want to invest in Brewerytown, but would you consider Strawberry Mansion?
In addition to real estate investors rehabbing rundown homes in Brewerytown, new restaurants, coffee shops and retail businesses have been opening up, revitalizing older buildings. Investors reporting very impressive returns have attracted more investment to the area, making it a little harder to find lower-priced fixer-uppers. Brewerytown stands out from Kensington and South Philly because of its easy access to Fairmount Park and all the biking-walking trails along Kelly Drive and MLK Drive. But just north of Brewerytown, Strawberry Mansion includes even more of Fairmount Park and access to the all the same trails. Yes the crime rate is currently higher and more of the neighborhood is sketchy, but Philadelphia has been investing in this neighborhood and some blocks are definitely moving in the right direction. Brewerytown’s median house price is $209,000, but you can find some serious bargains in Strawberry Mansion where the median price is just $72,000.
Summary
You have options of where to buy in Philadelphia even when you can’t seem to buy where you want to buy. Some neighborhoods have taken off and the competition makes it hard. Others are just too pricey now to give you a good return. But with so many neighborhoods just starting to pop, we really do have many good options here.