Greater Philadelphia Area

[Kevin Leslie]

Hello Everyone,

My name is Kevin and I am just starting out in real estate investing.  I am currently looking for a property in the greater Philadelphia area.  To keep it brief, I am looking to house hack my first property, purchasing a multi-family and living in one unit.  Whether that will be a duplex or a triplex is depends on the opportunity but I have a few questions that I have been asked and I will certainly have more as I hear from everyone.  

The first question I have pertains to location.  I am considering multiple locations but I have been mostly set on the Manayunk and Roxborough area primarily.  I lived there for school and believe it offers a good mix of what I am looking for, having quick city access and access to the suburbs for people working there.  I am also considering Conshohocken because it is similar to Manayunk and it is not within the city but still close.  My only concern there is that I do not see many listings for MF in that area and the ones I do see are very expensive.  Lastly I am considering the Bryn Mawr and Ardmore areas primarily because they are very convenient for where I am currently working, and my family has owned a business and owned property there for 40+ years.  Only thing about that location is the amount of MF listed and the prices are the most expensive of the three areas, especially for someone just beginning.  Manayunk/Roxborough has been my first choice for a while but a concern I have heard constantly has to do with the taxes associated with owning in the city versus these other locations.  If anyone could shed some light on the differences in taxes in these areas that would be great.  Also any other expenses there might be in the city that won't be seen in the suburbs.  I am also wondering if the tax issue can be combated by less vacancy in the areas closer to the city.

Any help/insight would be greatly appreciated and I look forward to hearing what everyone has to say!

Kevin 

[Paulette Midgette]

@Kevin Leslie when I am concerning investments in Philly vs.  Montco my primary focus is the potential buyer or renter.  When I am considering a flip in look in the suburbs because the vast amount of people in the suburbs are families looking to buy.  When I am concerning the City it is buy and hold because there is a large rental pool to pull from.  I find that the advantage of the suburbs is ready buyers (families, more financially situated to purchase).  Also, you can command a higher rent for the same unit sizes in the City (excluding the Center City District).  One disadvantage I found was that the vacancy between tenants were longer in the burbs.  As I stated previously the advantage to rentals in Philly that they fill up quick and tenants tend to stay longer compared to the burbs.  You also have a number of student populations to pull from, which is not as plentiful in the suburbs.  One of the things that bug me most about Philly is the dealing with municipal services.  There are aware of the problems and over the past year I have seen much progress, but there are still a number of pain points that make you want to give up the whole.  But I believe the City will continue to make slow but steady process.

I hope this response is helpful.