About Philadelphia's Wynnefield

The title of this blog says it all. I'm finally starting to see condo prices in some Philadelphia condo buildings that make sense as buy-and-hold investment opportunities. Typically the business model of buying a condo unit and renting it out for cash-flow has been a long-shot in Philly. This is largely due to condo fees that cost you more than the amenities they pay for generate in rental premiums. However, the condo market seems to be lagging the rest of the market in terms of pricing recovery, and since there is still a glut of condos on the market it may make sense for certain investors to start looking at certain condo buildings.

The benefit of buying condo units as rental properties is that a lot of the maintenance and management headaches of owning rental property are taken care of for you in exchange for that condo fee. This makes condos a good choice for out-of-town investors or those looking for a very "low hassles" way to invest in Philadelphia real estate. As an example of a condo investment deal that could work in today's market I will use a property for sale in the River Park Condominium building in the Wynnefield section of Philadelphia. This is an older, high-rise condo in a very nice middle-class Philadelphia neighborhood. The specific unit is a 1 bedroom for sale for $60,000 with a monthly condo fee of $460. Assuming an 80% LTV mortgage at 5.5% interest, the monthly mortgage payment (including taxes & insurance) would be about $375. Units of this size, in this very building, are renting for $1000-$1400/month. Even at the low end of this range, monthly cash flow would be $165. Given that the total out of pocket cost (including a generous $3000 for closing costs) would be about $15,000, and assuming a one-month vacancy every year, this represents an annual return on investment of 12.1% - not bad at all for a low-maintenance condo unit.

Feel free to contact me for more information on the opportunities that are emerging in the Philadelphia condo investment market.

Large Lot with Residential Zoning for Sale - 2452 Bryn Mawr Avenue - $250,000

Large lot 100x250 for sale just off City Line Ave, Developers can build on the residentially zoned land. All offers will be considered.

Search here: Investors search: http://www.phillyinvestorhub.com/index.php

Contact us: http://www.thesomersteam.com/contact.php

The Somers
Chris and Stephanie Somers
Remax Affiliates
215-400-2600

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If interested in buying or selling properties in Philadelphia, contact Chris and Stephanie Somers at thesomersteam@yahoo.com or 215-400-2612 . You can connect with us on Facebook and Twitter . For investment properties, check out our new investor site at Philly Investor Hub ! If interested in checking out our new office in Northern Liberties, let us know !

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