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Updated over 9 years ago,
Do these prices for SFH in Philly make sense?
Hey BP community!
I am looking to purchase my first SF investment property in West/South-West Philly from a local TK provider. My concern is their prices might be too high and since i will never get appreciation in those areas I will be stuck and unable even to get my money back even in 10 years ... Can anyone tell me whether these prices make sense?
2537 S.Shields 3BD/1BT- $84,000
1719 S.Ringgold, Point Breeze 3BD/1BT- $70,500
2520 S.Felton 3BD/1BT- $82,000
1635 South 55 Street 3BD/1BT- $82,000
5827 Belmar, Cobbs Creek Cove- $83,000
Note: houses are fully renovated.
Thanks a lot!
Ekaterina
Seems like these properties were bought inexpensively in less desirable areas and flipped.
One recommendation to think about when considering these properties would be the value you can add to them. For instance, a second bathroom, even just a half bath goes a long way. There is a lot of new construction going up in Point Breeze, and a fair amount of flips are being churned out. I would not all together rule out appreciation in that area, especially if you plan to hold for a decade.
Are you planning on living in the property? Or are you purchasing to rent?
James
Originally posted by @Ekaterina Stepanova:
Hey BP community!
I am looking to purchase my first SF investment property in West/South-West Philly from a local TK provider. My concern is their prices might be too high and since i will never get appreciation in those areas I will be stuck and unable even to get my money back even in 10 years ... Can anyone tell me whether these prices make sense?
2537 S.Shields 3BD/1BT- $84,000
1719 S.Ringgold, Point Breeze 3BD/1BT- $70,500
2520 S.Felton 3BD/1BT- $82,000
1635 South 55 Street 3BD/1BT- $82,000
5827 Belmar, Cobbs Creek Cove- $83,000
Note: houses are fully renovated.
Thanks a lot!
Ekaterina
Point-Breeze seems about right and that's on the lower end of that part of S.Philly. They've been many $200K+ properties sold there in the past. You might be able to negotiate(up to $10K) lower on the 55th St property and the Cobbs Creek property as well. I'm not sure about the others. This is all from a glance of the addresses of course and not running any comps or seeing the amenities of subject properties. **Its one thing to do bare minimum(rent only rehab) and try to secure premium pricing(retail sale rehab) and another to actually do the premium rehab work to secure the premium pricing. That can make a difference. My coin.
Kudos,
Mary
@James Brand and @Mary B. thanks a lot for your input! I am purchasing to hold for a long term, may be 10 years or a bit less. These properties are for sale by a Turnkey company, which did already renovations (all new but basic) and rented them out. I'm just thinking if the price which they are charging me is way above the comps and might hurt me even in 10 years ...as I will break even if lucky ... that's not the scenario I'm looking for. What if I have to sell earlier? then I will be screwed!