Darby or Norristown, PA single families

[Pierre Streat]

Hello BP Family,

Hope you are all well. Are there any investors out there who perform the BRRR (buy, rehab, refi, rent) strategy on single or multi families in the Darby or Norristown, PA areas? If so, what are the demographics like in these outer areas just outside Philly? Where do most people work? Are there decent/high enough ARV/comps to successfully execute a BRRR? What are rents like on a 3bed/1bath? Asking prices on distressed single families are well under $50k so was just wondering if these could potentially be solid areas to generate high cash flow. I appreciate your advice.

Thank you

[Keith W.]

We have 5 units in Norristown.  If you have not been there I suggest you tour the area.  One of the Realtor's I met with insisted on meeting at the local McDonald's.   He felt it was important to understand the market.... It was good advice.  With that said and as others noted, code enforcement is rigorous but understandably so.  Some occupied properties I looked at were despicable and inhumane.  I have had to do a lot of work that was Use and Occupancy (U&O) related but i have to say that it was all justifiable.  Contoured had rails rather than pressure treated 2x4's was a little extreme but the inspector was correct with respect to code.  I do not do Section 8.  There seems to be a never ending stream of License Fees, fines for tenant infractions (not cutting lawns, outside furniture on porches, etc) but at the end of the day.... a cleaner, safer neighborhood is in my best interest.   I highly recommend using a property management company well integrated in the market.  Be very careful with multi-family zoning.  Don't assume that just because a property was once zoned as multi-family that it is perpetually grandfathered into this zoning.