Is Philadelphia a good long term investment market

General Real Estate Investing
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Is Philadelphia a good long term investment market

Michelle Borg
Member since 2023 · 2 posts · 1 vote

Hi all, we’re looking to buy our first investment property. We live in Southern California but have a lot of family in the north east. We would like to start building our portfolio with a long term rental, preferably a duplex, using a property manager. Is Philadelphia a good location for long term rentals? Thanks for all info and help. 

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Sheryl Sitman
Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
2y

@Michelle Borg I moved to the Philly suburbs in 2016 in order to develop my investment portfolio and have since spread out to multiple states. I am sure that the numbers in Philly look great on the proformas you may be running. What you are missing is an understanding of what lies behind those interesting numbers. Done right, Philadelphia can be  a solid investment. But many remote investors (in general) are naive and do not take the time to learn the market and set up the systems and teams they need to invest wisely and manage their investments well. I run the FB group Philadelphia Landlords Connect -2000+ small investors who have a variety of experiences that they share and help each other to find good contractors, navigate city laws...  There are many parts of Philly that have undergone incredible transitions. There are more neighborhoods than you can imagine. Philly is block by block and it is VERY tenant friendly -- so you need to truly know what you are doing. But knowing what you are doing should be a part of investing anywhere -otherwise it is gambling and not investing.  Since you are on the other side of the country, you may not have considered that PA is filled with many micro markets as well within driving distance of Philly. Lots to do out here. Feel free to reach out and good luck in your journey!

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    Yes.

    0Reply
  • Chris Pelc
    Investor · Philadelphia · Member since 2023 · 104 posts · 46 votes
    2y

    My opinion may be bias as my real estate career is here in the Philadelphia area. 

    However, i work with a ton of out of state investors from all over -- California, NYC, CT. ect. -- who seek rental properties in the Philadelphia area. This is simply due to Philly's market allowing for great rental to value ratios. Comparatively to the markets in California and NYC, it is much harder to cash flow with how inflated the purchase price is of most properties in these markets vs properties in Philly. 

    I also have a ton of resources for investors such as contractors, property management, inspectors, appraisers, ect.. I would be happy to help you out if you need any assistance. 

    0Reply
  • Johnny N.
    Member since 2023 · 1 post · 0 votes
    2y

    I'd love to get some info about the Philadelphia market as well. Have some questions for you.

    0Reply
  • Tim Ryan
    Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 654 posts · 622 votes
    2y

    Hi Michelle, I don't know about Philadelphia, but there are good markets in the Mid-west. I am also in So Cal and invest OOS. I would say having family nearby could be beneficial if you think they could be of any assistance. Or maybe you are thinking that when you visit your investments you can double up and see family. Ok. But I would not use that as a criteria to invest out of state. The question to ask is if Philadelphia is experiencing job growth and population growth. Do people want to move there. Is there currently a lack of housing, etc. 

    1Reply
  • Michelle Borg
    OP
    Member since 2023 · 2 posts · 1 vote
    2y

    Thanks so much! I will be reaching out soon, we’re making a trip there to check things out. 

    0Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Hey Michelle, I am an agent and investor in the philadelphia area. I'd be happy to connect and talk about my experiences investing in Phila and the market as an agent.

    Reach out anytime!

    [email protected]267-767-0111
    Alan Asriants - New Century Real Estate 590 Reviews
    View Page
    0Reply
  • Sheryl Sitman
    Rental Property Investor · Philadelphia, PA · Member since 2015 · 478 posts · 362 votes
    2y

    @Michelle Borg I moved to the Philly suburbs in 2016 in order to develop my investment portfolio and have since spread out to multiple states. I am sure that the numbers in Philly look great on the proformas you may be running. What you are missing is an understanding of what lies behind those interesting numbers. Done right, Philadelphia can be  a solid investment. But many remote investors (in general) are naive and do not take the time to learn the market and set up the systems and teams they need to invest wisely and manage their investments well. I run the FB group Philadelphia Landlords Connect -2000+ small investors who have a variety of experiences that they share and help each other to find good contractors, navigate city laws...  There are many parts of Philly that have undergone incredible transitions. There are more neighborhoods than you can imagine. Philly is block by block and it is VERY tenant friendly -- so you need to truly know what you are doing. But knowing what you are doing should be a part of investing anywhere -otherwise it is gambling and not investing.  Since you are on the other side of the country, you may not have considered that PA is filled with many micro markets as well within driving distance of Philly. Lots to do out here. Feel free to reach out and good luck in your journey!

    3Reply
  • Stephen Berengian
    Member since 2019 · 2 posts · 0 votes
    2y

    @Michelle Borg - I also live in Southern California and have been considering investing in PA. I've made some connections I'd be happy to share with you. Just curious, did you decide to move forward with investing in the area?

    0Reply
  • Sudhir N.
    Member since 2018 · 17 posts · 5 votes
    2y

    I live in CA and have properties in Philly since 2018. I wouldn't recommend Philly for a variety of reasons. No population growth, no economic surge and rents have stayed flat. Expenses are notoriously high even putting CA prices to shame. Either you should have great cash flow or high appreciation. I hoped Philly would provide a blend of both and it hasn't. I am hands on micro managing maintenance issues. Yet, I barely survive thanks only to the pandemic era low interest rates and tax abatement. The supply of new construction continues to flood the market suppressing rents massively. As an example, I could get $1700 for a 2 bed/ 2 bath near Girard College back in 2018. Fast forward 6 years you still can get units for the same price or lower. 

    2Reply
  • Sudhir N.
    Member since 2018 · 17 posts · 5 votes
    2y

    The wild card in Philly is the Office of Property Assessment and their crazy assessments. The property values could swing wildly destroying any rental economics. They come up with values unhinged from realities of the market. For that alone, Philadelphia investing is a path to financial disaster. Just stay away! Philly is not worth it. The city is delusional to levy such high taxes as if it's Seattle, Miami or Austin.

    0Reply
  • John WilliamsBusiness Member
    Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
    2y

    Make sure to check out Clarksville, TN! It is a top choice for out of state investors like yourself!

    -John

    [email protected]931-272-3065
    Rent My Home - Property Management4.8209 Reviews
    WebsiteView Page
    0Reply
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