Thoughts on the Philadelphia Market

[Rob Bianco]

I’m a NYC local who got into real estate about a decade ago as an out-of-state investor in Kansas City and I think I’ve reached a point where I have enough experience and property where I should diversify my investing by entering a new market. Philadelphia is a city I feel very close to as someone who went to Temple and it’s not that far from me geographically.

In regards to investing, I have a few concerns, which I’m hoping someone can speak on. Firstly, the housing stock in Philly is very old and mostly brick which to me usually means lots of maintenance. From old sewer lines, to water coming through the masonry, to outdated electrical, it seems scary for an investor.

Other points of concern include pest control since many of the townhomes are connected.

From an outsider perspective it looks like property tax isn’t as suffocating as a city like Chicago and tons of areas are gentrifying so fast.

Has anyone considered condo investing in Philly so at least that way you’re not wholly responsible for building/exterior maintenance?

Any advice or opinions are appreciated

[Saaj Patel]

Rob,

Philadephia native, Temple alum, and fellow investors here. 

I agree with Jeremy about old condos here. I think that goes for every market, not just Philadelphia. Since there has been a lot of recent construction in Philly, there are plenty of investments in the market that are newer than the brick houses that you are concerned about. It just depends on the zip code that you are investing in. 

Personally have not had an issue with pests and my units. They are also row homes and one even shares a wall with a bando (about to be rehabbed).

I have helped one HNW individual with condo investing in the Philadelphia area. Let me know if you want to chat further.