Philadelphia continues to rebound and be revitalized by real estate investors. Real estate market trends show plenty of great opportunities for investors wanting to get into or expand their operations in Philadelphia. Legacy Capital works with real estate investors who are making solid investments and scaling up their rehab businesses, providing working capital for their projects through fix and flip loans Philadelphia.
The Affordability of Investing in Philly
Trulia puts the median selling price for Philadelphia residential real estate at $200,000, but we know that prices vary more widely than you’ll find in a lot of other cities. We’re not just talking about prices varying neighborhood by neighborhood. In Philly, it can be block-by-block or even from one side of the street to the other. You can find single family homes from $30,000 to $60,000 that can be rehabbed and rented out to single parents wanting to get out of low-income apartments. There’s no way you’re doing that in San Francisco, for example.
Philadelphia is Growing by Redevelopment
The city can’t expand outward so it’s been expanding upward with an increasing population density. Marco Santarelli at Norada Real Estate Investments says, “You can only really build up, redevelop or subdivide.” Philly is a fascinating place to invest. Do you know everyone wants to live in or close to Center City and University Center? More than half of the city’s jobs are in those two areas! Find abandoned or under-utilized properties, even older commercial properties, that can be redeveloped into multifamily housing and you could score a big return on investment. Hard money loans are available to investors with solid redevelopment plans for single family homes or multifamily who need fix and flip loans Philadelphia.
More People Rent Than You Might Expect in a City This Size
Home ownership is lower in Philadelphia than most American cities around this size. About 40% of housing is rented out. The demand for rental housing remains strong, and at all income levels, low, medium and high. Many people choose to rent because the houses they could afford to buy need renovation or would be out in the suburbs, but they want to remain in the city.
This City Loves Airbnb
The city of Philadelphia regulates short-term rentals which is far better than many cities that restrict it or make it near impossible. You have to keep the rental unit looking like a home and remit an 8.5% tax on all profits, but doing short-term vacation rentals on Airbnb or similar services is working quite well for some investors. A multifamily property could give you the opportunity to have a long-term tenant work part-time for you to prep and clean the other units for short-term rentals.
Summary
If you’re a real estate investor wanting to take advantage of the benefits of investing in Philly and you’d like to develop your business here, Legacy Capital could become a good partner to help you with fix and flip loans Philadelphia.