Investing in Philadelphia Rougher Neighborhoods

[Kerry B.]

We're interested in the Kensington/Frankford area, but our property manager and agent has conflicting views. Manager thinks Frankford will change first and then Kensington 10 years from now. Realtor thinks the complete opposite. What worries me about Kensington is the drug infestation and how hard our manager is telling us it is to find decent tenants in Kensington...thoughts??

[Ryan D.]

Originally posted by @Kerry B.:

We're interested in the Kensington/Frankford area, but our property manager and agent has conflicting views. Manager thinks Frankford will change first and then Kensington 10 years from now. Realtor thinks the complete opposite. What worries me about Kensington is the drug infestation and how hard our manager is telling us it is to find decent tenants in Kensington...thoughts??

This is somewhat old advice as 3-4 years ago people thought Frankford, which has a nice cluster of high-income homeowners on its west side and a much nicer housing supply, would revitalize prior to Kensington, North of Lehigh Ave, the area plagued with the open-air heroin market. North Kensington has a lot more going for it currently than Frankford. It's closer to Fishtown/Center City and has a lot more investment flowing into it. I love Frankford as I'm 7 generations to that area but the sad reality is N. Kensington is blocking it from the path of appreciation and a lot of N. Kensington's problems are being forced into Juniata & Fkd. Look up Shift Capital to see the work they are doing in Harrowgate. My mentor who has been buying in the lower NE for two decades now is only buying north of Lehigh for rentals. He only does flips in Fishtown/E. Kensington/Olde Richmond area.

Buy N. Kensington east of Kensington Ave. or anywhere in Harrowgate for cash flow now and appreciation over the next few years. Or find a nice block on the western side of Frankford then prepare to hold for 8-10 years minimum. Either one if bought correctly will work, you just need to understand the time horizon with both areas. Best of luck!