Do you guys invest in suburbs??

[Nick Scullin]

Are there investors there making suburbs work? I feel like when I am here on BP and listen to the BP podcast, as well as talk to other friend investors, they are all in well known popular cities, or very proximal suburbs. I understand people are always going to need houses in the suburbs, but I am just in my head that I wouldn't be able to make investing work. For me, I want to invest in Northern Philly Suburbs. While still very close to Philadelphia, I am just telling myself "Oh this isn't a place to invest because these are just random suburb towns." I understand that there are people there right now who are renting so there is obviously some market, but are suburbs something other investors are making work? 

I am looking for you guys in the BP to tell me if I am being thinking about this all wrong, or can I make things work in suburbs? I just don't want to derail myself from wanting to invest because of this excuse! I am excited to start with a House Hack this year and just keep rolling from there! And I really want to make the suburbs work FYI!

Thank you for any and all input!!

[Jimmy O'Connor]

Hey @Nick Scullin ! Greater Philly Investor and Wholesaler here. I LOVE THE BURBS, especially nowadays that people are looking for more space since COVID-19 exposed the ability to effectively work from home. Now people do not need to live in a 650sf apartment to be close to their profession. My team has been seeing a lot of Delco and Montco deals fly as of lately. Here are a couple of off the cuff pros and cons:

Philly Pros

-More apparent appreciation and easier to predict the path of progress.

-Population Density

-Easy to establish values since almost all Philly homes are 900-1200sf two-story legos.
-U&O are waaaay more lax than the suburbs

-Low Taxes

Philly Cons

-COMPETITION (like any metropolitian area)

-Sloth bureaucracy (permit pulling, plan approval)

-4.28% Transfer tax

Suburbs Pros

-School systems that sell homes, not blocks

-Safety of your equipment/materials not getting stolen

-less competition (unless you are by a university or the #1 school district)

-Permits/inspections are handled on micro level, usually takes a fraction of the time as it does in Philly.

-Sure you do not appreciate as rapidly as Philly, but there is value in stability. Less volatility in given markets.

-Some may take this for granted, but the ability of putting a dumpster on your property and being able to park near your projects. 

-You do not need to know the intimate "block by block" details like you may in Philly. You would be shocked at how 0.15 miles changes values over here.

Suburbs Cons 

-Not as heavy as an appreciation.

-Usually need more square-footage to repair

- U&O is always going to be up your case and will wack you with even the smallest chip in the sidewalk, telling you that you need to drop 5-7k just in cement before you even get approved to touch your home. 

- Comping is not as cookie cutter as it is in the city, now you are usually dealing with different styles, build types, etc.

Always feel free to reach out to me! Best of Luck