New Investor Exploring the Philadelphia Market

[Dzung Doan]

Hello BiggerPockets Community,

I trust you're all doing well. I'm Dzung Doan, a newcomer to real estate investing with a focus on the buy-and-hold strategy for rental properties. I've gathered a starting capital of around $35K-$50K and can save an additional $3K-$5K monthly for further investments. My financing strategy centers around using conventional loans, specifically a 30-year mortgage with a 20-25% down payment.

In an attempt to make my investment journey as passive as possible, I'm researching markets and properties that can offer steady cash flow with minimal active management. One market that has caught my attention is Philadelphia, Pennsylvania, given its stable economy, rich cultural heritage, and attractive rental yields.

As I'm just starting my journey, I would love to hear from seasoned investors who have experience investing in the Philadelphia market from out-of-state. I am particularly interested in:

1. Understanding the different neighborhoods and their respective investment potentials
2. Hearing about the challenges and rewards you've faced in this market
3. Learning from your experiences with local teams (agents, property managers, contractors, etc.)
4. Gaining insights from your key lessons and successful strategies

Furthermore, any advice on potential pitfalls or critical factors I should be aware of in the Philadelphia market would be immensely appreciated.

My goal is to make well-informed decisions and hopefully embark on a successful journey in real estate investing. I am open to any advice and suggestions, and I look forward to insightful discussions with this knowledgeable community.

Thank you in advance for your time and for sharing your wisdom and experiences.

Best regards,

Dzung Doan.

[Eric Greenberg]

Assuming 25% down for an investment property at your max range $50k would be $200k all in. Then subtract closing costs and any renovations needed. So your talking about a home in the $175k and under range.

There are plenty of areas that you can find properties at or below that threshold but few that will have a solid tenant base in Philadelphia. Id first start by looking on Redfin/Zillow/etc and cap your search in the low $200k’s and see what areas are even possible at that price point. Then dive into what those specific areas are like.