Investing in Philadelphia offers a lot of options. Suburban parts of the city are especially desirable for investors, for their inventory of single-family homes, their large pool of tenants, and the quality of life that this part of our region provides. People love the northeast suburbs of Philadelphia especially. There are lots of residential neighborhoods, plenty of forest trails and parks, and a diverse blend of cultures and creativity that makes the area very livable and a potentially profitable area for real estate investors. When you invest in Philadelphia suburbs, you're gaining benefits such as:
- Close proximity to the center of Philadelphia and all of its business, culture, and industry.
- Outstanding restaurants with celebrity chefs and specialty cuisine from around the world.
- Activities and recreational pursuits for families and people of all ages and abilities.
- Affordable properties.
Plenty of suburbs make great investment opportunities. We like the northeast suburbs because there is a growing interest in the area, especially from well-qualified tenants. This is what you're most looking for as an investor. Which suburbs are the best suburbs? We're sharing a few of the areas that we have seen grow dramatically in recent years. Here, you'll find single-family homes as well as multi-family properties which offer great investment potential. Remember that your investment goals will ultimately drive the decisions you make about properties that will or will not make sense for you. Stay true to those, and don't buy anything that doesn't fit your current investment goals or your future plans. If you're looking for your next investment property in Philadelphia, we recommend that you stay out of the city business center. Instead, look at neighborhoods west of Roosevelt Boulevard. We like suburban areas like Montgomery, Chester, Burlington, and anything in Delaware County or around the Delaware River. Here are some of the best suburbs you can invest in when you're looking to grow your portfolio.
Invest in Bustleton
The Bustleton suburb is in northeast Philadelphia and is a quiet, residential area that's popular with families. It's close to the center of Philadelphia, but not as crowded, loud, and chaotic as downtown. There is a feel of both urban and suburban energies, and it's been called one of the most affordable neighborhoods in the entire country. You won't have to spend a lot on a property, which makes it an accessible suburb for investors. Rents are climbing, and the tenant pool is well-qualified.
Invest in Rhawnhurst
An affordable neighborhood that's popular with renters, you can potentially invest in a Rhawnhurst property for less than $250,000. It's a safe community with good schools and all the conveniences that tenants need, including grocery stores and restaurants. This is an area that will deliver established properties as well as new construction.
Invest in Fox Chase
Affordable and easy to live in, Fox Chase is a suburb close to downtown Philadelphia that allows for commuters and remote workers who are spending more time at home. Fox Chase is affordable and popular with renters. Great healthcare facilities are found in this neighborhood, including a major Cancer Center, and there are also a number of parks and green spaces.
Pennypack Park Real Estate
Another great suburb of Philadelphia for real estate investors looking for a bargain is Pennypack Park. There's a lot of nature here, with parks, meadows, wetlands, and trails that cover around 1,600 acres. Pennypack Creek runs southeast as it goes from Montgomery County to the Delaware River. Most of the homes in this suburban neighborhood are single-family homes.
Holmesburg Real Estate
The Holmesburg suburb is incredibly affordable for both investors and renters. There are bars, restaurants, coffee shops, and unique locally owned businesses in this neighborhood. A lot of the homes here are owned by owner/occupants, and that makes rental properties all the more desirable. You'll attract tenants who are likely to stay in place for longer, so they can take advantage of the great schools and the stable neighborhood feel. It's about 10 miles outside of the city center.
Somerton Real Estate
Homes in Somerton are a bit more expensive to buy, but they also come with higher rental values. This is in the extreme northeast of Philadelphia's suburbs. There's a good mix of retirees and young professionals as well as families. You'll find a quiet, suburban feel that's still alive and active. Plenty of bars, restaurants, and entertainment options exit in Somerton, making it an ideal neighborhood for well-qualified tenants.
What to Look for in a Suburban Philadelphia Investment Property
How do you know you've found the right neighborhood and the right property when you're investing in the Philadelphia suburbs? We have some tips around that.
- The location is right. We've already pointed out some of the best suburbs. Whether you invest in one of these or somewhere else, make sure tenants will want to live there. Remote rental homes or those that are in areas renters find too crowded or congested will need a specific type of tenants.
- Make sure the home is in good shape. It's tempting to invest in a fixer upper, but those are going to cost you a lot of money. Not only do you have to invest in repairs and upgrades, but you have a longer vacancy time. You're looking for cosmetic updates only, so you can get that property on the market as quickly as possible.
- Talk to a property manager in Philadelphia so you can get an idea of what a potential home will rent for. This will help you identify opportunities and crunch the numbers to make sure the math makes sense.
If you have any questions about how to effectively invest in Philadelphia suburbs, we're the property management experts who can help. We work with investors like you all the time to find just the right property. Please contact us at Innovate Realty. We work with investors of all experience levels in the greater Philadelphia metro area as well as surrounding suburban areas in Montgomery, Chester, Burlington, and Delaware County, to the Delaware River.
