Philadelphia Suburbs - Which are best?

Question

I am curious to get people's take on which western suburbs of Philadelphia are best for a buy-and-hold rental strategy. I am looking mostly at Chester County but am also interested in Delaware County and Montgomery County. So far I have been looking mostly at Phoenixville, Downingtown, Bridgeport, and West Chester (and a little bit at Conshy/Manayunk/Roxborough). Curious if anybody has significant experience in these markets and can offer any insight? Thanks

Ryan Dressel · Answer

Regarding SEPTA, there are plans to extend the Norristown High Speed line into KoP in the next 5-10 years.http://www.philly.com/philly/blogs/in-transit/3702...There are also planned improvements to the capacity in Conshy;http://6abc.com/traffic/penndot-septa-plan-to-redu...There have been some back of the napkin ideas about extending rail service out to Phoenixville, but nothing concrete yet.Outside of SEPTA - other improvements include the on-going widening of 202 out to West Chester, and the $45 million Lafayette St extension project in Norristown which will connect Norristown to 276 in an attempt to re-vitalize the town. This project is the closest to completion (2017). I tend to agree with the prior comments about holding rentals near infrastructure access. Let me know if you have any questions about any of the towns!

Katie Heer · Answer

@Matt WoodsI was born and raise Delco (Delaware County). Out of both Chester County and Montgomery County, Delco might be your best bet. Both Chester and Montco are more well off counties, you might have a difficult time finding a good deal (but obviously if you find it, go for it!!) Delco is a huge county, there is a lot of different neighborhoods and 15 School districts. There are 12 universities/colleges in Delco if you are looking to get involved in a student rental market. It also boarders the south west part of the city, meaning SEPTA is extremely abundant from regional rail, buses, and subway surfaces/trolleys. Feel free to contact me if you have any questions! I can help any way I can.

Paul McCormick Jr · Answer

@Matt Woods Sorry, this is a little after the post, but I would say it's wherever you can find great deals and the numbers make sense. I am currently in Delaware County myself, there are parts where you can get great cash flow but the appreciation factor isn't there. Best place would be where you could get potentially both. I think that West Chester and Phoenixville are very popular right now for SFH sales, not sure about rentals thought.I would say I 100% agree with @James Brand in the fact that wherever you decide as long as it's close to Public Transportation/SEPTA (ie regional rail preferably, bus/trolley lines next). I think there would be better demand for either the rentals or the property itself and if you wanted to get out of it at some point in the future. Like he said, Philadelphia is a major Metropolitan area, which has a ton of employment opportunities, so you would definitely want potential tenants to have easier access to that, again that's just my opinion though.

James Brand · Answer

I invest in the city, however when it comes to the burbs I always hold that the closer you are to SEPTA the better. When you are renting you want to be able to appeal to the myriad of professionals that need to commute into the city the closer they are to transit the more appealing your property will be. Just my $.02.

Percy N. · Answer

@Matt Woods, as Joe mentioned, it depends on what you are looking for.Are you looking for cash flow or appreciation?I have rentals in Montgo and Chestco which get 1.5% to 2% in rent.While I understand what people are saying about public transportation, I don't think that is the only factor. Two of my highest priced rentals (over $2000/mo) are not close to public transportation.

Bob Norris · Answer

Matt, I am in Southern Chester County and involved in both buy and hold and flips. My primary market is the Kennett Square and Chadds Ford areas. Prices are high, even for houses in tough shape. I would say we are in more of a sellers' market. It is expensive to get in and there is a fair amount of investor competition and people looking to move into the market. The schools are very good in both areas. Conversely the rental market is strong and if you can purchase and renovate a solid property, the returns are reasonable. Good luck!

Joseph Scorese · Answer

Hi @Matt Woods,Welcome to BP!Looks like you are interested in all of the Greater Philadelphia Real Estate Market.Some things to consider in the Suburbs;* Can you afford the acquisition prices(Entry Point compared to Philadelphia County both on a Flip or Conventional Purchase* Taxes reflect differently in the burbs based on location (Transportation) and education provided for children and also college or university impact to that immediate area.Depending whether you are considering cash flow or flipping you need to understand your financial resume capability to compliment your market capabilityLet me know if you have any questions.Regards,Joe Scorese