Harrison St. Philadelphia PA 19124

[Allison Karrels]

I am looking to buy a duplex from ABC Capital and wanted input on an address from any Philadelphia folks out there:  1925 Harrison St. Philadelphia, PA 19124

The math all looks solid - $96,000, total rent $1250 - After 25% down mortgage, vacancy, repairs, maintenance, property management - cash flows $462, 10.61% cap rate.  The purchase price is after a full renovation and tenants are secured.

I don't know the area, but I am willing to drive the 3 hours to check it out further if it has potential - before I did I wondered what people here thought about that specific street or area.  This would be our first duplex and our first major city property.   

Thanks for any insight.

[Paulette Midgette]

@Allison Karrels, Harrison street runs for a number of blocks within the 19124 zip code.  So, where the hundred block is, will give you some idea of the environment in the neighborhood.  Please know that in Philadelphia you can't judge an entire area by it's zip code or an entire neighborhood by one block. 

The 19124 neighborhood is very economically and ethnically diverse with the highest population being Asian and African American, but recently there has been an influx of Russians. In fact my sister lives in a 19124 neighborhood.  She is a professional and her daughter attends private school...don't want you to get the idea that the area is full of low-income folks.  In fact the one thing that investors should keep in mind is, to make any neighborhood stable and vital there must be a mix of housing, people, and financial ability... high end, middle end, as well as affordable.  If you are simply investing to get a pay check and you have no interest in either improving the lives (by providing decent and safe housing) of your tenants or contributing to the growth of the area, then I would say invest in another city.  Philadelphia has way too many landlords who just want to fix it quick, rent it quick, collect the money, and come around when there is a maintenance issue or the rent is late.  These landlords are the contributors to the  problem of  the 'beat up neighborhoods' not just the tenants.

Allison, I would also encourage you to take the time to visit Philadelphia.  Tour this neighborhood as well as others.  I would be happy to be your tour guide.  Research the demographics of the neighborhood.  take the time to learn about what the City's development plan is for the area, etc.   I have posted a number of responses and information about the Philadelphia market here.  Please search my name to get links and additional information.

@Ron J. can you tell me what your are basing your advice of accepting Section 8 or she will be chasing rent checks?  I have owned property in some of the best areas of Philadelphia and I have chased rent checks.  Chasing checks has more to do with the character of the renter than the area they live in.  High income people can be just as irresponsible and nasty as lower income people.  Doing your homework, careful screening, and some intuition it what you need to help you put the right tenant in place.