Germantown Worth it or Not?

[Dave Ventura]

Hi Everyone,

With Jump Start Germantown and all the potential commercial work on the horizon on Germantown Ave, I am trying to feel out if this is a good area to invest in. The cap rate is good and numbers make sense to use the BRRR strategy as the comps in the area show ARVs that will work. But my concern is the rental income and quality of tenant post rehab. Has anyone invested here or know anyone that has?

My goal would be to use BRRR and then hold as I would expect the value of the house to increase as more commercial spaces move into the area. What is everyone's thoughts on the neighborhood in the next 3 years? Would love to discuss. Thanks!

[Ryan D.]

Hey Dave, I'm looking at Germantown as well. It seems like there's a lot of exciting businesses in the pipe and access to Wayne Junction makes it a very attractive area. The good thing with Philly nowadays is investors from NYC are buying up everything since everything is so cheap compared to Brooklyn and elsewhere.

I see nothing but good things for Germantown 3 years out from now. I use google search trends to gauge where a local market may be in the business cycle and see Fishtown similar to how Brooklyn was for NY around 2003/2004. Anywhere in Philly near the El or any major train stop will be a great buy long-term. Best of luck to you.