Investing in Philadelphia vs. Delaware
Hello everyone! I am a new investor living and working a full-time job in Wilmington, DE, which is about 30 minutes outside of Philadelphia. I am contemplating if it would be better to invest in Philly, or in Delaware where taxes are lower. Starting off, I really want to focus on investing in one area (hopefully nearby) until I gain more experience. I plan to use the BRRRR strategy to invest in small multifamily rentals and hold them long-term.
Some of you might be asking why I don't just invest in Wilmington. My reasoning is that the economy isn't great from what I've heard. Unemployment is fairly high and most of the good deals are in low-income areas with high crime. Properties also don't appreciate very well here and appraisals come in low according to local investors that I have spoken with.
Other Delaware markets I have been looking into are Newark and Bear. Both of these areas seem to have decent economies but obviously are much smaller than a major city like Philadelphia. While Philadelphia doesn't have a booming economy like markets in Texas, Washington, and California, it is stable which I assume has its benefits. I also think that investing in a large city has numerous benefits that might outweigh the lower taxes in Delaware.
I would love to hear everyone's different perspectives. All feedback is appreciated whether you're a nearby investor with experience in these markets, or live across the country and are just speculating. Thanks in advance!
Most Popular Reply
@Justin Tyler look into Delaware County PA. Particularly along the Septa line. Multi units are not very common outside of city limits of Wilmington. Newark is priced high and Bear isn’t a multi unit area.