All Forum Posts by: Steven Worley

Mayor Cherelle Parker just proposed a $6.7 billion budget for Philadelphia — and housing is a top priority. 📈

🏠 $400 million in bonds are planned to create and preserve both affordable and market-rate housing across the city.
📉 The budget also includes strategic tax reforms that could boost economic activity and improve housing conditions long-term.
🛠️ The focus? Solving the affordable housing crisis, stabilizing neighborhoods, and creating real opportunity for residents and property owners alike.

As property managers, owners, and investors — this is exactly the kind of forward momentum we like to see.

Philly’s growing, investing in housing, and getting more serious about smart development.

I've been keeping a close eye on a growing trend: Philadelphia has become the top out-of-state destination for New Yorkers looking to relocate—and it's starting to impact the local rental and investment landscape.

Here’s what’s driving the shift (and why it matters for investors):

Affordability Gap

• Philly’s median home price is around $256K
• Manhattan’s is over $1.1M
  This creates a huge opportunity for out-of-state investors looking for cash-flow-friendly markets without breaking into luxury territory.

Rent Gap & Stability

• Philly’s average rent is ~$1,700
• NYC averages over $5,100
  Lower rent means more accessible living, but it also indicates consistent demand—especially from incoming transplants priced out of NYC.

Market Movement

• More demand = longer-term tenant pools and increasing competition for quality units.
• I’m seeing increased interest in value-add multifamily, Section 8-friendly properties, and walkable neighborhoods near transit.

Why This Matters Now
Recent rental market trends in Philly have been cooling off—with Days on Market (DOM) climbing, and rental prices and absorption rates softening.
This inbound demand from NYC could help reinvigorate leasing activity and tighten up vacancy rates, especially in well-located or renovated units.

Hopeful Outlook
If this trend continues, it could shift local dynamics and help bring momentum back to a market that’s seen some slowdown. For those holding or acquiring in the right zip codes, it might be an early sign of recovery and renewed competition.

Hi all Philly investors! 

I've created a free interactive map for the upcoming Philadelphia tax sales auction, where you can easily see the location of each property along with its auction ID. No need to dig through lists—just explore the map and find potential investment opportunities quickly!

Check it out here: Philadelphia Tax Sale Auction Map

Hope this helps fellow investors—let me know if you find it useful and I can create more maps for Philly auctions!

It sounds like an okay deal, but a few factors to consider with the Philly market:

1. Location and Rentability: Philly’s rental market can vary widely depending on the neighborhood, and even the block that it's on. Make sure the expected $1,700 rent aligns with similar properties in your specific area. Vacancy rates and tenant demand are key, so researching current market trends in that neighborhood will give you a clearer picture.
2. Rehab and ARV: A $25,000 rehab estimate is reasonable, but make sure you have a detailed and reliable quote from a contractor. The quality of the rehab can significantly impact your ability to refinance and secure the projected ARV of $220,000.
3. Hard Money Loan Fees: 3.3 points on the hard money loan is on the higher side, and that upfront cost could eat into your cash flow. Make sure you account for all closing costs and holding expenses, as these can add up quickly.
4. Cash Flow After Refinance: Once the rehab is done and you refinance into the DSCR loan, ensure your monthly expenses, including mortgage and property management fees, allow for positive cash flow at the expected rent. If rent doesn't come in as projected or takes longer to secure, it could affect your profitability.

If you’re comfortable with these factors and confident in your numbers, it could work well. Keep an eye on the rehab costs and local rent comps to make sure everything aligns.

Good afternoon! 

I completely understand your concern about potential vacancy issues, especially when it seems like there are so many rental options available in the Philadelphia area.

However, not all areas are created equal when it comes to rental demand. Based on recent data, there are specific zip codes in Philadelphia with lower Days on Market (DOM), indicating strong rental demand and a quicker turnaround in finding tenants. Here are a few prominent ones you might want to consider for your BRRRR strategy:

• 19153 - 19 DOM
• 19152 - 26 DOM
• 19154 - 28 DOM
• 19115 - 31 DOM
• 19118 - 34 DOM

These areas typically have better tenant demand, meaning properties are rented out faster compared to other parts of Philadelphia, where DOM can exceed 50 days. Focusing on these zip codes could help reduce your chances of prolonged vacancies and improve your cash flow stability.

If you’re looking for more detailed market insights or need assistance with tenant placement to maximize your investment, feel free to connect. I'm here to help you navigate the local market and ensure you make a well-informed decision.

Best of luck with your investment journey, and I’m looking forward to seeing you succeed!

Hi Eli, welcome to the community! It's great to have you here. Fix and flips and the BRRRR strategy are fantastic ways to build wealth, especially in a market like Philadelphia where there's plenty of potential.

As a property manager in the Philadelphia area, I've seen firsthand how impactful a solid property management strategy can be on maximizing returns, particularly for investors using the BRRRR method. If you ever need insights on managing properties effectively, tenant placement, or maximizing your cash flow, feel free to reach out.

I’d love to connect and explore ways we can collaborate or assist each other. Best of luck with your investing journey, and I look forward to seeing your success!

I concur with @Ryan Muska's perspective. As an investor, the goal is to generate consistent residual income. However, it's important to recognize that some income is better than none, particularly in today's challenging rental market where securing tenants can be difficult.

Additionally, if you require assistance managing your property, I am affiliated with a property management company specializing in comprehensive services for long-term rentals. Please feel free to reach out if you need support.

Hey Ernest, I just sent you a message but also wanted to reply here. I work at a local property management company, and 2 zipcodes that our clients have seen success with are 19149 and 19111. Anyone, feel free to contact if you have anymore questions!