Center City Philadelphia & Surrounding Area Real Estate Properties

[Sam Desai]

I just finished graduate school and am looking for a rental property to invest in long-term and sell the property after it has appreciated ~20% in 10-15 years.

My budget is around 250-300K and I'm looking for properties (with little to no repair work needed) in up and coming areas of the city as well as in established areas where I can reach my investment goal of a ~20% appreciation in 10-15 years OR have positive cash flow from rent. I've found a handful of properties but would like some additional suggestions with regards to what neighborhoods I should focus my efforts in. I'd also like to know if my goals are realistic given the market in Philadelphia.

I've checked on redfin and zillow and noticed that property tax values are much lower than what is posted on the government tax website for the city of philadelphia (1.2% vs. 9.2%).

What is the actual property tax rate I will be incurring? Is it worth buying an apartment in the Center City Philadelphia area?

I'd appreciate it if anyone have has experience with Philadelphia rental properties and can shed some light onto property tax problem I am facing. Thanks!

Best,

Sam

[Paulette Midgette]

Hi @Sam Desai,

With your price point for purchase there are a number of neighborhoods that may want to consider.  If you are looking for homes with no or little repair stay in the areas in and around Center City Philadelphia (Fishtown, Bella Vista, University City, etc.).  With respect to established neighborhoods, these would be further out from the City Center (Mt. Airy, Overbrook, Northeast Philly, to name a few).

I am not sure what governmental website you got the tax information from, but the Philadelphia percentage may be a comparison to the national average.  Philadelphia real estate taxes are very low, making it a very attractive market for out-of-state investors.