Buying a rental Property in Point Breeze

[Maneesh Joshi]

Hello,

So I am planning on buying a rental property in the point breeze area. I plan on buying a property that has been recently renovated so is pretty much ready to rent right out of the gate.

I wanted to see if people who currently have rental properties in the area are fairing? Is there anything that you did not expect? Was there any areas of the neighborhood that you would avoid or inversely focus on? Most of my search has been on the border of PB and Grays Ferry.

Also, I was curious as to what type of renters you are seeing in point breeze. Are they mostly couple or families, or roommates? Are most of your renters older or younger that work in center city? Are there aminities in the rental that are must have to maximize rental income(ie central AC, finished basement, outdoor space...etc)?

Appreciate any insight.

[Jimmy O'Connor]

@Maneesh Joshi if you are looking to pay up on your purchase price for that product in favor of appreciation in a booming area than that neighborhood would be a great fit for you. Point Breeze and Grays Ferry is mainly a flipping territory due to the high outsale and lower days on market but the spread of each of those deals are tighter than a year or two ago as the purchase price for shells have reached 100-110k in Grays Ferry and 125k-140k (sometimes even 150) for true point breeze. Most of the renters down there tend to be recent college graduates or young professionals that want to be in close proximity to down town. This is why New Bold (between Broad and Point Breeze) is arguably one of the hottest pockets in South Philly due to how close it is to the Broad Street Line.  

In B to A class neighborhoods, central AC is a must for renters. Grays Ferry maybe not, but definitely Point Breeze. 

To answer the bit about where to focus on rentals- it all depends on your goal, is it cashflow (go for S8)? Force appreciation and refi (see Germantown, Olney, The Mansion, SW Philly under Baltimore, Cobbs Creek)? Area Security (see Point Breeze, Brewerytown, West Philly due east of 52nd)?