Philadelphia, PA · Member since 2016 · 14 posts · 4 votes
Hi all,
I've recently switched my investing entry strategy and am currently looking to buy & hold my first multifamily property in Philadelphia, PA with a goal of house hacking. I'd like to buy in an up and coming neighborhood, but also one that I'd personally like to live in for at least a year.
I've considered West Philly with close proximity to the universities but I'm currently focused on the Brewerytown neighborhood. I've spoken to several investors who believe Brewerytown/Germantown are starting to show similar trends that Northern Liberties/Fishtown did 2+ years ago.
Any investors have thoughts on this area or other recommendations? I understand South Philly is hot and I may invest there later, but it's too far from my extended family who live in the northern suburbs for my own residence initially.
I've recently switched my investing entry strategy and am currently looking to buy & hold my first multifamily property in Philadelphia, PA with a goal of house hacking. I'd like to buy in an up and coming neighborhood, but also one that I'd personally like to live in for at least a year.
I've considered West Philly with close proximity to the universities but I'm currently focused on the Brewerytown neighborhood. I've spoken to several investors who believe Brewerytown/Germantown are starting to show similar trends that Northern Liberties/Fishtown did 2+ years ago.
Any investors have thoughts on this area or other recommendations? I understand South Philly is hot and I may invest there later, but it's too far from my extended family who live in the northern suburbs for my own residence initially.
Thanks for any insight you can offer!
Lindsay
@Mark Redmann thanks for the mention! I'm not sure I'm an expert in anything but I do happen to be house hacking a MFH in Brewerytown as well as rehabbing and building new construction both for rent and sale in Brewerytown (along with my partners). What can I say about Brewerytown without sounding like a cheerleader? I love it and it's just taking off now. There is still a ton of opportunity here and I firmly believe it'll be just as hot as Fishtown in the next few years.
Any questions feel free to ask! For the record, I do feel Germantown has plenty of potential in the right areas, I just happen to not know the first thing about it and, out of sheer laziness, haven't bothered to try and figure out where those areas are :)
Philadelphia, PA · Member since 2016 · 142 posts · 26 votes
10y
South Philly might be a hard area to find a good deal. It's real hit or miss there. You can literally be in a good neighborhood, then go a block or two and be in a bad area.
Investor · Philadelphia, PA · Member since 2013 · 43 posts · 5 votes
10y
@Lindsay Denny, reach out to Joseph Scorese about Brewerytown. He's got an office in Brewerytown and is very well versed in whats going on in that area. I went to a informational meeting last week in his office where he had a State Rep speak about the upcoming changes in the area and the incentives(10 year tax abatements) for investors. I think Brewerytown will be a very promising place for you to invest in the next 5-10 years. Good luck!
Investor · Philadelphia, PA · Member since 2013 · 177 posts · 80 votes
10y
not sure what happened there. I guess that's what happens when you start replying from a cell phone, but the laptop finally boots up and you decide to switch!! oh well.
As far as I'm concerned, @Troy Sheets and @David Ross would be the resident BiggerPockets experts on #brewerytown. I am now investing there because of them and will do really well on my current flip. I will be searching out more flips and holds in this area with my (our) current direct mail campaign.
I've recently switched my investing entry strategy and am currently looking to buy & hold my first multifamily property in Philadelphia, PA with a goal of house hacking. I'd like to buy in an up and coming neighborhood, but also one that I'd personally like to live in for at least a year.
I've considered West Philly with close proximity to the universities but I'm currently focused on the Brewerytown neighborhood. I've spoken to several investors who believe Brewerytown/Germantown are starting to show similar trends that Northern Liberties/Fishtown did 2+ years ago.
Any investors have thoughts on this area or other recommendations? I understand South Philly is hot and I may invest there later, but it's too far from my extended family who live in the northern suburbs for my own residence initially.
Thanks for any insight you can offer!
Lindsay
@Mark Redmann thanks for the mention! I'm not sure I'm an expert in anything but I do happen to be house hacking a MFH in Brewerytown as well as rehabbing and building new construction both for rent and sale in Brewerytown (along with my partners). What can I say about Brewerytown without sounding like a cheerleader? I love it and it's just taking off now. There is still a ton of opportunity here and I firmly believe it'll be just as hot as Fishtown in the next few years.
Any questions feel free to ask! For the record, I do feel Germantown has plenty of potential in the right areas, I just happen to not know the first thing about it and, out of sheer laziness, haven't bothered to try and figure out where those areas are :)
Investor · Cincinnati, OH · Member since 2015 · 23 posts · 2 votes
10y
What are rents like in Brewerytown? Specifically what crowd is renting there (young professionals?) and for a nicely rehabbed or new construction 3 bed/2 bath, what kind of rents can one expect?
Developer · Philadelphia, PA · Member since 2014 · 65 posts · 60 votes
10y
@Nick Taskani - lots of variables. Check out Rentometer for some better ideas on rent prices per block. You can go three blocks in any direction and see very stark difference in housing quality, pricing, safety, and amenities.
Rough estimate for rehabbed homes: rents can range from $800/mo for a modest 2bed/1bath to around $1400/mo. Larger homes with 3-4 bedrooms will rent for slightly more. Then you'll have some higher-end apartments that rent at $1500 for 2 bedrooms... and some older stock housing you can rent for $600/mo... It covers the spectrum.
@Lindsay Denny - Yes I agree these are on the radar of investors Good luck and let us know what you find. Also consider Kensington, Grays Ferry, East Falls, and Port Richmond...
Banker · Philadelphia · Member since 2009 · 2k+ posts · 634 votes
10y
Hi @Lindsay Denny
Welcome to BP!
Great time to get into certain North Philadelphia, PA markets now.. There is financing, property management and all the other services available out there to assist you in making it work. Pick a couple solid neighborhoods and focus. Also, attend real estate educational events for sources. My office is at 29th and Girard and we see the growth on the corridor. Let me know if I can assist.
Out of curiosity @Lindsay Denny, did you change your mind completely on West Philadelphia?
Not at all...still analyzing both locations. Leaning towards a buy & hold in West Philly and potentially doing a flip in Brewerytown later on. But of course please share any thoughts you have :)
Philadelphia, PA · Member since 2016 · 14 posts · 4 votes
10y
Originally posted by @Account Closed:
Hi Lindsay,
Have you searched for Philadelphia listings on Mashvisor? They can tell you where in Philadelphia is a good place for buy-and-holds (traditional or Airbnb). They'll give you neighborhood and property analytics to tell you the top neighborhoods and properties to invest in, projected cash on cash flow, cost assumptions, seasonality trends, occupancy rates, pricing, etc.
I would search their site and see the different neighborhoods and listings and play with the analytics - it's interactive so you can change the numbers to get forecasts.
The cash on cash returns look good - for the properties I saw - between 4.5-5%.
If South Philly is showing to be great for investments - it might be worth it to invest now. Investing outside of your neighborhood can open up a lot of opportunities. Do you think you could create enough cash flow to hire a property management company?
Thanks for the tip Diala...will be looking at property management companies but not for my first few investments (although I do plan to budget for it when analyzing deals).
Jenkintown, PA · Member since 2016 · 1 post · 0 votes
10y
Late reply, but I like the idea a lot! I think Brewerytown is the next big Philadelphia area! However, how does everyone feel about a buy and hold strategy in Strawberry Mansion? Particularly, buying land/lots with no structure and holding for the long term? Obviously there is no cash flow from such an investment, but I feel the long term gain from appreciation would far outweigh any cash flow. Once Brewerytown settles, Strawberry Mansion will be the missing link up the river... Thoughts?
Banker · Philadelphia · Member since 2009 · 2k+ posts · 634 votes
10y
Hi @Lindsay Denny,
Welcome to BP!
You bring two very aspiring neighborhoods which I invest in both, have an real estate company in Brewerytown on Girard Avenue and coordinate sub groups for the LOCAL REIA in both areas. Depending on your investment capability both work whether from a flip or a hold. The rents and values are appreciating based on good transportation back into Center City currently. New Construction is also assisting in Brewerytown as much as the U City borderline attracting buyers and renters that cannot afford U City or Fairmount Prices. You do need to go too much further right now in Brewerytown with a lot of work to be done up to Cecil B Moore and in U City I would check out the neighborhoods like Cedar Park, Walnut Hill and Squirel Park. Let me know if I can be of assistance.
Philadelphia, PA · Member since 2016 · 142 posts · 26 votes
9y
@Neerav Patel Your bet bet would probably be to drive around the area. Philly goes block by block. One block may be nice, then the next is a war zone. Drive around the area you're interested in and check it out.