Grays Ferry Gentrification?

Question

Driving around Grays Ferry I’m seeing  a ton of new construction and renovations.

I’m referring to 28th st - 34th / Grays Ferry Ave - Tasker.

What’s anyone’s take on Grays Ferry?

Eric Greenberg · Answer

Maybe, but thats not a definite.  Grays Ferry has been ‘on the come up’ for many many years.

Marc Possoff · Answer

I’m very familiar with Grays Ferry as my wife grew up there as well as her whole family.

There has always been talk about Grays Ferry for as long as I can remember as being the up and up for different reasons with no action.

In the last 3-4 years it started to become actionable.

Marc Possoff · Answer

On the come up? Ok there has always been talk in Grays Ferry that the neighborhood would be ‘on the come up’ for many years but it never happened until I would say it started 3-4 years ago with complete rehabs and new construction.

If you would have said to me let’s say 5 years ago Grays ferry is ‘on the come up’ I would have said everyone has been saying that for years nothing new, nothing is happening.

I would say now there is action to support the ‘on the come up’ unlike let’s say 5 years ago to 25 years ago.

My wife had a lot of family in Grays Ferry and everyone said “oh Penn is going to come in and will make it better” etc etc. This was 25+ years ago.

Now the University of Penn has a housing program for employees. It happens to extend into the Forgotten Bottom ONLY 19146 area code. Since you have Pennovation and a soon to be built other university facilities at or around Grays Ferry Ave, hopefully Penn will extend the program to Grays Ferry. But that could be tricky because then Penn is supporting south Philly which would be against their grain of supporting West Philly. The Forgotten Bottom yea is south Philly but it almost isn’t but it is if that makes sense.

Alan Asriants · Answer

100%

Alan Asriants · Answer

There's a ton of supply.

Too much being built.

Those who can't sell are forced to rent

And those trying to rent are having a hard time renting things out. There is too much supply for the little amount of demand for rent or for sale.

Be careful of peoples projections in the area as they are not accurate. ARV's and rent estimates

Maybe with section 8 you can get it done, but again, you have to be prepared for Section 8.

Truth is, I'm seeing that less people want to be in the city and more people want to be in the suburbs.

Maybe this can change, but until the supply gets occupied, this will remain

Good luck

Marc Possoff · Answer

Makes sense to go Section 8. Although Grays Ferry is in 19146 I still consider the neighbor maybe a C class. But no doubt that it will become an A.

First question with section 8 I assume you don’t need a property manager?Since the house is completely renovated we want to maintain it in the shape that’s it’s in. It’s basically a brand new house per se. With that being said we would want the tenant to report stuff that would need attention. For example like clogged toilets or sinks so they don’t overflow and cause water damage. The roof is new so shouldn’t have leaks but you never know and would like to know when a problem happens so we can get it fixed without causing more damage because it not addressed can cause more money to fix and further damage.

For instance it will be bad if a toilet backs up and floods all over the place because tenant keeps trying to flush instead of letting landlord know before it gets to a point where it floods all over. Water is a bad thing if not addressed or cleaned up as quick as possible.

As a section 8 landlord are we allowed to check the property once a month for issues? I wouldn’t be looking for cleanliness but looking for damage and / or tackling an issue that could get worse.

As a section 8 tenant what are their responsibilities to report issues?

I believe that a section 8 lease in Philadelphia is for 24 months. I understand if tenant doesn’t renew there will be some maintenance when vacant. But since everything is new I don’t expect major stuff. We will have an expense account and capex account.

On the other hand is tenant wants to stay we would probably still like to do touch ups or whatever to maintain the property to keep it as close to brand new as possible. Understand there will be wear and tear for living in.

I know I’m kind of spilling off thoughts in my head.

Thanks!

Dan Powers · Answer

@Marc Possoff As long as your house is in 19146 then yes.

Marc Possoff · Answer

If we were to go section 8 would we be entitled to high opportunity zone rental rate even if it’s in Grays Ferry?

Dan Powers · Answer

@Marc Possoff Because 19146 encompasses many high end neighborhoods such as Devil's Pocket, Graduate Hospital, and prime Point Breeze. This is why it gets the "High Opportunity zone" grouping, but on a more granular level the Grays Ferry neighborhood has lower rents then all these areas, hence Section 8 rent being more then market rent. Hope this answers your questions

Marc Possoff · Answer

Why is section 8 rent higher than non section 8?

Grays Ferry Gentrification?

Most Popular Reply