Thoughts On Buying A Rental For 60 K In Philadelphia?

[Isadore Nelson]

Good afternoon, I am a first-time investor looking to get started with my first property. 

I've for over a period of 2-months been looking at properties in the cheapest neighborhoods in Philadelphia, namely those within the 19134 zip-code. It seems that properties in the area can range on average from 50k-75k. I'd like to acquire one for say 60k with a 20% down-payment of 12k. Monthly mortgage payments including insurance and tax would be around $475 while the rent would be around double that, leaving me with a monthly cash-flow return of about $500. 

Is this a reasonable expectation and a good option?

I'd love to hear any of your feedback, thank you!

[Isadore Nelson]

Quote from @Eric Greenberg:

Quote from @Isadore Nelson:

Quote from @Eric Greenberg:

19134 is a very dynamic zip code. Being east of Aramingo in Port Richmond is an entirely different world than Kensington Ave/the letter streets. 

You can certainly make money anywhere but I would only suggest investing by K&A if you really know what you are doing. If you have never been to this area please go during the day, not night and check it out… or even youtube it before. That might be all you need to know. 

I have been there, and know it is an insane place, but that wouldn't necessarily make it a bad investment, especially with limited resources as a start, no?

It could be. It only matters if thats the type of investment you want to hold and deal with. Have you talked to any PM companies who deal in that area? 

And like I said being east of Aramingo in Port Richmond is an entirely different world. Lots of folks priced put of Fishtown are moving north and Richmond Ave had been slowly bringing in new businesses. 

It's hard to find anything below 120k out there. If I am going to the more affordable area, I'd try to stay within a block of Kensington Ave versus further in, if that makes sense.

I've spoke to some PM's in the area, anything specific you're referring to?