Investment Property in Greys Ferry

[Priyanka Singhania]

Hi, I'm in the process of looking for investment properties in South Philly, more specifically the Greys Ferry area. A lot of new construction has recently been on the market this year. I know none of us have a crystal ball, but what are your opinions on a buy and hold strategy on a new construction home selling for around $400k in that area? 

The plan would be rent it out or maybe airbnb depending on the place. The 10 year tax abatement is a nice perk in my opinion and would help us keep the monthly costs lower. 

[Alex Uman]

@Priyanka Singhania While I do believe that values will continue to rise in Gray's Ferry it sounds like your strategy is more based around rental income. We can always estimate that an area will appreciate but at the end of the day, you can never guarantee value of a property or neighborhood in 10 years. Regardless, I still think that $400k is pretty steep for an investment property to only gross $2k in rent at the higher end. Even if it sells for $650k in ten years, you've tied your money up where it could be earning more with value add projects.