Best Philly Sub-Markets for Rentals

[Justin Tyler]

Hi everyone! I am currently looking for rentals in Philadelphia, and I am wondering what others feel are the best sub-markets for buy and hold rentals. I have been told that Fishtown is a great area for young professionals, but prices are relatively high in this area. Another neighborhood I've been told is an up and coming area is Brewerytown. It looks like crime is higher in this neighborhood, but is mentioned as being one of the best sub-markets for investors in numerous articles. Does anyone else have rentals in Brewerytown? If so, what are they renting for?

I am looking for an area with the highest possible (RtP) = (Monthly Rent x 12) /Purchase Price. I am also looking for an area that has room for appreciation over the next 7-10 years, but this is less important to me than monthly cash flow. I would love to hear where other BP members are investing in Philly, and why. Looking forward to a good discussion!

- Justin Tyler

[Sheryl Sitman]

@Justin Tyler Rather than look for "the best" because that is subjective, depends on budget and what you are trying to achieve short and long term, I suggest a few things - 1. Get in your car and drive around the neighborhoods you have heard about and see what is happening and get a sense of how the city is transforming and where that is happening. It is not random. 2. Define what it is you are looking to do because everyone is different, has different resources, risk tolerance, etc. I just finished renovating a three floor home in the northern part of Brewerytown. Already on my block there are a few total gut rehabs and the occasional flip within one block - next street over a flip just sold for $300k and even I was surprised. Two blocks away there is lots and lots going on. 3 blocks away, it starts to feel like a different neighborhood. We know the City, the plans, the zoning, what permits are being pulled around us, etc. and we went into this one for the coming appreciation - but will get some decent cashflow in the meantime. We own throughout the city - each property has been purchased with a specific strategy that fit what we were trying to accomplish. On the other hand, I have worked with lots of investors who define a budget and then tell us to find them the best ROI for that budget and that's all they want, others who want risk and to be in the next Fishtown, etc etc. Philly has it all. Good luck!