Questions about Philadelphia Market for LTRs

[Sakshum Kulshrestha]

Hi everyone! I'm 23, and I'm looking to purchase my first rental property this year. I am strongly considering Philadelphia as a market to invest in OOS because I was raised in Jersey and I used to be familiar with neighborhoods in the city; I understand things have changed over time, however. I'm looking into SFHs in the 250-320k range. As I look into the market and start to build a team I had a few questions:

1)  How difficult is it to get and keep a rental license OOS? I understand I'd have to be local for some appointments, but are these visits generally infrequent/painless?

2) I'd like to target B class properties, but I've read about significant  apartments added in these areas. How do SFHs fare in competition with these rentals as supply increases?

3) What neighborhoods would you recommend in this price range if I'm targeting high quality tenants? It seems tough to find even mediocre cashflow on turnkey properties, and I'm currently looking into Fishtown/Olde Richmond, and Point Breeze, but areas like Germantown are compelling also.

4) How seriously do local investors take projects like the Bellwether project? Do you factor them into your neighborhood selections or do these projects tend to fizzle out in Philly?

[Eric Greenberg]

You'll need a contact who lives in Philadelphia for a rental license now to put down their contact info for the city. That could be your PM company if you plan to hire one. 

A renter for a stand alone rowhome is usually a different profile from a large apartment complex renter in my experience. That said most folks have price targets and if large complexes are conceding 1 or 2 months on the 1st year lease, itll put downward pressure on your rent to some degree. 

I live in and mostly invest in the Fishtown area but thats because I know my renter and know this area more than most. Happy to answer any specific questions you have.