As a note, residential properties typically are not evaluated with cap rates, but I think you may have been saying a 7.5% cash on cash return or ROI.

And if you rehab you are certain you'll still only get the market rate of $1000.

When analyzing your offer, make sure to factor in operating expenses, rehab costs, and vacancy rates.

- You can Google this, but sales & rentals slow down once kids go back to school.

Also what are the interest rates on your current loans?

I have a hard time seeing a property worth $625,000 that you're into for $450-500,000 cash flowing very well at $3500-4000/rent with where rates are these days.

Having good schools played huge part in the properties we purchased.  

My current company is AllState, and they increased their rates by 100%, so I'm looking elsewhere.

You might not get as much cash flow with that equity as you would get if you sold and put it into say an apartment building, but with the low mortgage rate you are likely getting some pretty good principle paydown each month and it's in an area that will see good appreciation/rent growth long term. 

Not that that means anything good or bad :-) But if you want high quality genuine coaching about investing in Philly and at a reasonable rate, I can  connect you with a wonderfully savvy, professional investor who does coaching.