Norristown: The hidden gem? A discussion

[Nick Scullin]

Hey everyone! I'll try and keep it short. I've been looking more into Norristown lately as a place to invest and potentially start with my first house hack. The prices are much better and there is a larger amount of multifamily homes. And the location is great....but we all know the elephant in the room that I promise I'm not overlooking. Norristown obviously gets a bad rap for being laced with crime and being an overall bad area. Friends think you're crazy when you mention living there.

My question is, is it really that bad still? Or is there a LOT of potential here?? Everything surrounding it, such as KOP, Plymouth Meeting, Blue Bell, and Conshy are great and desirable areas. Will gentrification take over and find this area as "the place to be" in 10 years? I'm not sure. I know of a couple people who live there who say that it isn't nearly as bad anymore and most people make it seem worse than it is.

Just want the opinions of other investors and agents (or residents) on the topic! Comment your thoughts or shot me a message!

[Jimmy O'Connor]

@Nick Scullin Norristown is 10000% on the the path of appreciation. That being said, Norristown is not quite a "gem" yet, maybe more of a coal that has been put in a pressure chamber and is bound to shape up. Personally, it's been a honey pot lately for my deals as the Schuykill river corridor seeing a lot of appreciation stemming from KOP moving westward to Bridgeport and then making its way of the River to Norristown. I recently moved a 13 unit right by the courthouse that had shockingly high value and a solid cap. That being said, Norristown as a whole has some ways to go. @Steve Babiak you're not wrong, there is ABSOLUTELY crime in that area, but @Dan Powers has some legs to stand on. The median property sales has risen ~200% in the last 5 years which is well beyond the normal rate of inflation and appreciation for the surrounding areas. This is for sure a great BRRRR area while still showing flip potential depending on which pocket of Norristown you are in. Most BRRR areas that you are able to do a full cashout refi and still cashflow usually are rough around the edges. Let me reiterate- DEPENDING ON WHAT POCKET YOU ARE IN. @Joe Steinheiser is right on the taxes, the rate does not make sense relative to the rents especially considering the level of school districts Steve mentioned. As far deals, this is one of the last remaining of the handful burbs that I seem to find a deal to make a decent ROI either as a flip or rental.