19128 – Roxborough 19129 – East Falls, Wissahickon 19130 – Fairmount, Spring Garden, Francisville, Sharswood 19131 – Overbrook, West Philadelphia
If there’s one thing the great housing crash taught real estate investors, it’s this: numbers matter. Chasing cash flow alone isn’t going to build a real estate portfolio, nor will hoping that the appreciation will eventually add new padding to your portfolio’s bottom line. The only way to go is to look at the current data on one’s proposed areas of investment, as well as future projections.
In this guide, we will look at a few different areas: Roxborough, East Falls, Wissahickon, Fairmount, Spring Garden, Francisville, Sharswood, Overbrook, and West Philadelphia.
Let’s get started…
Roxborough is a great idea to begin your search for properties to add to your real estate portfolio. Why? It’s all about the local economy: in Roxborough, the average income is up to $85,000. That means that working professionals have enough money to handle their housing needs, making it much easier to keep vacancy rates down and occupancy rates up.
The area does not offer many apartment buildings for sale over time, but the average listing is around $425,000. For investors pursuing syndication deals or other group structured deals, this area provides an opportunity to invest in apartment buildings without the high price tags found in other areas.
There’s still opportunity within the single-family homes as well, with homes in the low six figure range, all the way up to right under a million dollars. Rents are strong, averaging about $1300 according to local surveys of the area. Long term holding of property is just one strategy for today’s investor; there is enough demand for property in the Roxborough area to engage in strong flip and wholesale opportunities.
As we move our attention to the East Falls area, we must highlight the strong average rental price here: $1562. For investors looking to make rentals their primary investment focus, there are plenty of opportunities in East Falls to do so. Properties move very quickly in this area, making it extra appealing for investors focusing on flip and/or wholesale strategies.
Buying homes in this area means getting into a part of Philadelphia experiencing fast growth currently. The average sales price in this area is $290,000, over 35% compared to last year’s numbers.
Like East Falls, Wissahickon has an inventory of homes that move on and off the market very quickly. Unfortunately, the average sale price dipped by almost six percent compared to prices last year. Investors can take this insight two different ways: use it as a buying signal and make it a point to negotiate where possible, or steer clear of the area. The right way to go will depend on your specific goals and looking long term.
The average sale price is around the $220s, with multiple offers becoming the norm rather than the exception. Schools in the area are strong, including Wissahickon High School, a National Blue Ribbon School of Excellence according to the U.S. Department of Education.
Fairmount, Spring Garden, Francisville, and Sharswood
These neighborhoods of Philadelphia seem to have no trouble attracting young adults. A report from the Pew Charitable Trusts discovered that Fairmount is one of the areas in Philadelphia attracting a high number of millennials. These young adults are looking for the right mix of nightlife, job opportunities, easy commutes, and diversity. Feeling like part of the community is very important for millennials, and they are starting to change the face of not just Fairmount, but also Spring Garden, Francisville, and Sharswood.
We think that cultivating a picture of inclusion, strong property management, and amenities is critical to retain millennial renters and even buyers, if that’s part of your investing strategy.
Overbrook and West Philadelphia
There are hidden gems to be found in Overbrook and West Philadelphia but this is more of a long term investment prospect with values going up over in likely 5-10 years. The median sale price in this area is around $179,000. For newer and younger investors looking to get on the property ladder finally, there are deals to be had in this area if you can wait it out. This area isn’t as competitive as other parts of Philadelphia, but that means more time to analyze deals before moving forward.
We hope that this gets you thinking differently about these zip codes around the Philadelphia area. If you’re looking to sell your home or looking for off-market properties to invest in, contact us today!