Temple rental property

[Tom Veit]

Hi everyone,

I am looking to purchase my first home with the intention to house hack. I've been researching the Philly market for months and am looking to pull the trigger. I have my eyes on a property in Olde Kensington about a 10 minute walk away from the fox school of business building. It's a good deal, but I am worried about the supply levels for housing... 

Come May / June 1, will I be able to get this house rented out? There are  so many ads on craigslist right now in the area mostly from the new development. Planning to rent out by the room at 600 - 650 and be a live - in landlord. 

Thoughts?

Thanks,

Tom

[Nathan Milholin]

@Tom Veit

Hi Tom, fellow Philadelphian here. I'm currently in law school at Temple, right next to the business school. 

My first instinct would be that unless you are offering some really high-end finishes and a roof deck or including utilities in that number, $600-650/bedroom in Olde Kensington is too high an estimate. I'm not saying it's impossible, but please don't run your numbers counting on that. There is a glut of student housing in the area, and I think competition is likely to drive prices down for anything that isn't new construction. I would say that you can't call anything a "deal" in that area unless it would cash flow at $450/bedroom.

Just as an aside, if it only takes you 10 minutes to walk from the Fox School building to Olde Kensington you must be very fast walker.