Don't rush to buy...

[Alan Asriants]

As an agent and investor I see a lot of newer investors make the same mistake:

They saved up some cash and want to immediately buy an investment. They turn to low price neighborhoods because that is what is affordable to them right now. 

Those returns might be sexy, but doesn't mean the actual deal is. Getting involved in C-D class areas as a first investment is risky and usually not the best route for a first time investor. 

I would recommend to those looking to start investing to:

1. Drive by the area on your own during the morning, day, and night

2. Ask yourself: would I live here?

3. Keep saving until you can invest in a solid area

Investing in real estate is not supposed to make you rich off of one deal. It's a slow process that takes years to materialize. 

In fact Real Estate is one of the only investments where buying more expensive property is a safer and smarter play. 

Rushing and buying a property for 200k, chasing rents, dealing with evictions, constant repairs, and seeing baby appreciation over the years is not the best move

Saving up a bit more, buying in a more solid location that has higher quality tenants and larger room for appreciation will usually play out better for you in the long run. 

[Brad Olu A.]

Thank you for this advice. I was eager to get my first house and was looking in Frankford last year with the funds that I had but the area was not ideal. 

This year I doubled my savings but am still saving more until I hit a certain amount to get a house in a better class area either outside of Philadelphia or over the Delaware River in NJ.