Is Philadelphia a Good Place to Invest in Real Estate?
Real estate in Philadelphia is booming. Reports indicate that despite the declining market during COVID-19, homes are selling fast. The outlook for buying homes has now transformed entirely. People now consider spaces for remote working, a concept that wasn’t prevalent before 2020.
For those considering property investment in Philadelphia, this means better opportunities. Jon emphasizes that “Philadelphia offers a diverse investment market. You have choices ranging from student accommodation to multi-family units.”
Where Should I Invest in Property in Philadelphia?
Any experienced financial advisor will emphasize that before investing, “it’s essential to understand the landscape”. Real estate investment requires envisioning the bigger picture and identifying opportunities that may not be evident.
- Chestnut Hill is attractive to high earners. The median purchase price is around $625,000.
- Another popular spot is Logan Square (Jon’s favorite). This is one of the most vibrant parts of the city, with rents going up to $1,800 a month.
- Fishtown is popular with artists and students. The median purchase price is around $345,000.
How to Set Up Your Real Estate Business
Setting up your investment in the next step. One of my favorite and most used personal quotes is “Investing in real estate in Philadelphia requires long-term thinking.” As a new investor, it is recommended that you connect with more experienced investors, house flippers, and real estate agents. Wholesaling in Philadelphia is also common with investors, but you need a formal license for that.
If you’re a new investor, you’ll need to learn to network and connect with top investors, appraisers, house flippers, title agents, and more if you want to succeed in property investment. Wholesaling real estate in Philadelphia is a common strategy that investors use, too. However, you’ll need a formal wholesaler license for that.
Consider your business model next. The most common property management business structures are:
- Incorporated business
- Limited Liability Company (LLC)
Forming a new LLC in Pennsylvania costs $125 for the Certificate of Incorporation. Other costs may include registration, business licence, and notary fees.
Summary
Philadelphia is an excellent real estate investment opportunity. Our homebuying company flips houses in Philadelphia for a reason. The City of Brotherly Love offers something for everyone, and the upfront costs are affordable even for new investors.
All you need is the research and opportunity. Philadelphia will take care of the rest.
