Philadelphia Fix And Flips Continue To Grow
With many people choosing to move out of cities and other cramped urban areas, investors have taken advantage of the open inventory for their fix and flip investments. As of January 2021, the average sale price for Philadelphia homes reached $239,000 which is a nearly 14% increase from the previous year. The number of homes sold reached 1,334 which is over an 8% increase from last year and indicates a constant, healthy market growth that favors sellers. On average homes are only remaining on the market for 44 days, which is a 15% drop from the previous year and highlights the competitive market that buyers are experiencing.
New and experienced investors that can secure a good deal, whether it’s a foreclosure or a property that slipped between the cracks, can use this opportunity for a tremendous ROI. ABL lends to real estate investors of all experience levels, judging the deal based on the property and scope of work with minimal financial requirements. If you’re looking for Philadelphia fix and flip loans, contact us today to be approved.
Residential New Construction In Philadelphia
Record-breaking shortages of housing inventory are occurring throughout the country, and new construction is the solution. Experienced contractors and builders are taking advantage of the high demand in the marketplace by filling these inventory gaps with new single-family homes and multi-family properties. As of January 2021, homes in Philadelphia are selling on average for $176 per square foot which is a 13% increase from the previous year. For investors that can secure a prime parcel of land and keep construction costs low by sourcing their materials directly, residential new construction can provide a high ROI.
It’s important to note the real estate market trends before embarking on a new construction project to plan your design around the demands of the home buyers. For instance, in Philadelphia the top three home features receiving the most attention online are laundry area, back patio, and breakfast bar. That means homes containing these features are receiving more views than listings without these features, and the homes that sell with these are selling for slightly above asking price. Catering to the market is a huge advantage for builders, and knowing the demands beforehand is how to guarantee an early sale. If you’re looking to be approved for a Philadelphia new construction loan, contact us today.
Rental Property In Philadelphia Bouncing Back
Even though many residents have been moving from urban to suburban areas, cities like Philadelphia are starting to see their rental market return to pre-pandemic levels. Since many people could not afford city rent prices beforehand, these new reduced prices are bringing in an entirely new population of renters and keeping vacancy rates lower than places like New York City or San Francisco. Due to the currently under-market values of city properties, this is the perfect time for investors to snag low priced inventory and prepare to turn them into rental assets.
A modern trend of real estate investors is to focus on long-term gains rather than short term by using the BRRRR method. This method stands for buy, rehab, rent, refinance, and repeat. Investors simply follow the steps in order- they purchase a property and renovate it to increase its market value, then they rent it out to begin generating passive income. Afterwards, they refinance the property and use their new capital to purchase the next rental property, repeating the process there and slowly achieving several sources of steady monthly income. By utilizing the BRRRR strategy rather than fix and flip or new construction, investors continue to add to their rental portfolio over time and aim to achieve long term wealth. If you’re an investor looking to start or expand their portfolio with our Philadelphia rental loans, contact us today.