Due to the cultural happenings and small-town feel of this large city, Philadelphia is quickly becoming one of the best cities in America in which to purchase foreclosures and investment properties. The economy is booming in industries such as manufacturing, food processing, higher education, oil refining, tourism, financial services, telecommunications, and health care, with several Fortune 500 headquarters located within.
Philadelphia’s median home price keeps rising, increasing by as much as 12-percent each year, and yet real estate in Philly continues to be more affordable than in other metropolitan areas. In fact, there are a number of reasons why investing in Philadelphia real estate is a brilliant idea for investors. Along with the strong and flourishing economy, the job market continues to remain consistent and viable, with unemployment rates declining faster than the rest of the country. The population of Philly is growing and changing, with younger, highly educated people moving in at a quick pace.
If you’re looking to invest in Philadelphia properties, you’re embarking on a rewarding journey. Understanding the ins and outs of Philly property investment, including buying foreclosures, the risks and rewards, as well as learning how to find the best properties, is imperative if you want to make the right decision and receive the highest return on your investment.
There are a variety of investment strategies to consider when joining the real estate investor community in Philadelphia. If you are investing in properties with the intention of renting them out as an Airbnb or something similar, this is known as Buy and Hold. When investing in Buy and Hold properties, you will want to be sure that your property is as close to turn-key as possible. This will help to ensure that you have a minimum amount of non-income time.
Another investment strategy, fix and flip, involves finding a property in need of improvements and buying it at a price that reflects the condition. While searching for a fix and flip property, look for properties that need cosmetic repairs and improvements, as well as they meet the area’s code regulations. Once the property is fixed up and ready, you list it, sell it, make a profit, and then move on to your next investment.
Both types of investment properties can be found by looking at Philadelphia’s foreclosures, bank-owned foreclosures, for-sale investment properties, handyman deals, distressed properties, fixer uppers, and discount homes. Foreclosed homes are sold at public auction, so if you're looking to invest in one, make sure and have a good resource on the upcoming ones in order to not miss out.
Investing in foreclosures and investment properties in Philadelphia is a wise and lucrative decision. When you do things right, you will receive a hefty return on your investment. Work with real estate professionals who will help you with all the details and legalities of purchasing properties, as well as assist you in finding the best investment property for your specific desires.