New Yorker looking to invest in PA

[Gennaro Adamo]

Hi All,

New investor here- I'm from NY and looking to BRRRR somewhere in PA and have a few questions. I'm a total newbie at this so please bear with me.

I'm looking at SFR and looking to spend no more than 80k after repairs. After some research I've narrowed down the areas to Philadelphia and Allentown. If there are better rental investment neighborhoods within a 2-3 hour drive from NYC, please let me know!

Now come my questions...

I would like to put 20% down on a property, so that leaves me with an 80k budget. Is that enough for a rental property? Should I save a little more?

Can you include the repair costs into the mortgage?

Philadelphia is big and some parts are affordable for me and some are not. Do I want to risk investing in the affordable neighborhoods like Kensington, Hartranft, etc.? Is it worth it to invest in these neighborhoods?

If anyone can provide any help with my newbie questions, I would appreciate it. Thanks!

[Sheryl Sitman]

@Gennaro Adamo

That budget all-in in Philly will put you in some more challenging areas. You just need to have your eyes open, realistic expectations, people you can trust helping you. You are also in competition with no lack of cash buyers. The good thing about Philly is how much many neighborhoods are changing. So you can buy a place today that is likely to appreciate very nicely in the coming years.  Start walking properties that fit your budget and that will be a big step towards understanding the pieces of the puzzle.