Philadelphia is one of the oldest cities in the United States, with a large population of around 1.6 million people! The City of Brotherly Love is also home to a booming real estate market that allows investors to earn lucrative returns—especially commercial real estate investors.
Here’s our 2020 commercial real estate guide on everything you need to know when looking to buy real estate in Philly:
Philadelphia’s Economy Is in Good Shape
As a commercial real estate investor, it’s important to carefully evaluate the economic conditions of the location you’re planning to invest in.
Fortunately, Philly has a very steady economy. The metropolitan city has shown a positive growth rate over the years, and has a highly educated workforce. Philadelphia has seen its job market increase by 1.2% over the last year.
Philadelphia’s primary economic sectors include higher education, oil refining, financial services, healthcare, biotechnology, and telecommunications, all of which draw in a large number of skilled employees to the city.
Target multifamily homes for the best returns
Philadelphia’s tech hub status continues to draw in talented and skilled millennials, boosting demand for multi-family homes. Multi-family homes are a type of real estate that contains two or more units within the same property.
They serve as the ideal choice for single individuals who don’t want to pay rent for a full unit. The appreciation rate of multi-family properties is typically high. Furthermore, high housing demand in Philadelphia adds further assurance, along with solid monthly rental income.
Furthermore, Zillow contains more than 700 listings on duplex and triplex homes in Philly, which shows the high demand for these dwellings in the city.
Opportunities for flipping houses
Philadelphia is one of the oldest cities in the country, remember? Many homes in Philly are very old, which can play to your advantage if you’re interested in flipping houses.
Old homes are often available at discounted prices. You can renovate them into multi-family homes to earn lucrative capital gains as well as rental income.
Where to buy property in Philadelphia?
Philadelphia is a city of diverse neighborhoods. Each area has its own appeal and uniqueness attached to it. Here are some great places for buying multi-family properties in Philly:
- Fishtown. This location is dubbed ‘the hipster hub,’ and mostly attracts millenials and young artists. The median home value in the area is low, which is why properties sell very quickly, making it a perfect place to invest for property flippers.
- Chestnut Hill. This area is known as one of the finest places to live in Philly. It attracts executives and high-class professionals, making it suitable for investors who want to earn rental income at premium rates.
- Logan Square. This neighborhood has several restaurants, parks, and fun things to do. It’s a great location for young people as well as families. You can either flip properties or rent them out at decent rates.
Given current real estate developments, investing in Philadelphia might be the best choice for commercial investors. Buying multi-family properties in Philly is a good business decision given the influx of skilled individuals and rising demand for housing properties.
Global Capital Partners Fund LLC is a leading private lending firm that provides commercial financing solutions. The company offers a wide range of hard money loans and financing solutions for multi-family commercial units. For more details, call them at +1-800-514-7350 or visit their website.