Picking a market as a new Real Estate Investor

[Austin Craven]

Hello Bigger Pockets!

This is my first post on Bigger Pockets and I was looking to introduce myself. I am an aspiring Real Estate Investor who is looking to purchase a Multi-Family property to House Hack as a first time home buyer.

I am from the Philadelphia, PA area and am contemplating whether to get started in Philly or Wilmington, DE. In Philly it appears Fishtown, Northern Liberties, and perhaps even Kensington areas are beginning to gentrify a bit due to the new construction of I-95. Any other up and coming areas in Philadelphia to know about?

In regards to Wilmington, my girlfriend lives in Delaware and we've noticed the new construction along the River Front and some new restaurants/bars popping up in Trolley Square. I also noticed Wilmington has a comprehensive plan for 2028 city development regarding mild restructuring of public transportation that may enhance the city a bit.

Does anyone have any thoughts regarding which market might be better to tap into as a new investor? Does anyone on Bigger Pockets invest in both Wilmington and Philly? Any insight would be greatly appreciated, thank you!

[Michael Reilman]

Originally posted by @Austin Craven:

Hello Bigger Pockets!

This is my first post on Bigger Pockets and I was looking to introduce myself. I am an aspiring Real Estate Investor who is looking to purchase a Multi-Family property to House Hack as a first time home buyer.

I am from the Philadelphia, PA area and am contemplating whether to get started in Philly or Wilmington, DE. In Philly it appears Fishtown, Northern Liberties, and perhaps even Kensington areas are beginning to gentrify a bit due to the new construction of I-95. Any other up and coming areas in Philadelphia to know about?

In regards to Wilmington, my girlfriend lives in Delaware and we've noticed the new construction along the River Front and some new restaurants/bars popping up in Trolley Square. I also noticed Wilmington has a comprehensive plan for 2028 city development regarding mild restructuring of public transportation that may enhance the city a bit.

Does anyone have any thoughts regarding which market might be better to tap into as a new investor? Does anyone on Bigger Pockets invest in both Wilmington and Philly? Any insight would be greatly appreciated, thank you!

 Austin, welcome! Hope these forums bring you a ton of value. 

As far as where to buy, and as @Erik Hatch stated, higher % Population Growth, higher % job growth are two easy metrics that can be found at http://www.city-data.com/ Other things to consider are median income growth and rent growth. There's data all over the internet

I saw you mentioning "gentrifying" areas. I primarily invest in Cleveland, OH and brokers tell me everywhere is gentrifying! I have to laugh since it takes a personal understanding of the area if it truly is. I think 2028 may be too far out to consider, unless you plan on holding this property for a very long time.