Right now I have a couple of properties in Roxborough/Manayunk, Far NE Philly and Abington that have all been good rentals. In the coming weeks I'll have about $200k in proceeds from a 1031 that I need to put to work. Rather than buying another two family or two single families in these areas I've been looking more at higher priced homes in Southeastern Montgomery County and Southwestern Bucks County.  These would be larger 3br or 4br singles or higher-end townhomes in highly desirable school districts selling in the $450-600k range.  

While competition is fierce in this price range, the rental market for these types of homes seems very strong, at least based on what I'm seeing on various rental sites.  I've also personally witnessed high-income families who are desperate to move out of Philly as their kids get to be school age and are more than happy to rent for a few years.

I know how to analyze a deal but I was just curious if people had experience in this segment of the market.  In my view the positives are good quality tenants (subjective) who may stay longer due to kids schools, no Philly red-tape, more price appreciation vs city (at least recently), less competition (i.e. fewer rental properties & more owner-occupied).  The downsides seem to be that it could take longer to find tenants and larger homes may require more maintenance.