According to Mashvisor’s US housing market predictions for 2020, the Philadelphia real estate market is expected to be one of the most profitable locations for traditional rentals based on cash on cash return (CoC return). See the full list here. And although those were preliminary predictions, here is how the Philadelphia housing market is performing in April 2020 according to Mashvisor’s data:
- Median Listing Price: $318,090
- Price per Square Foot: $417
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,482
- Traditional Cash on Cash Return: 2.4%
Four months into 2020 and the Philadelphia housing market is still set to be one of the best places to invest in real estate for high cash on cash return. Of course, you may be thinking that a 2.4% cash on cash return is not very high. However, when comparing the average cash on cash return by city, the values are usually low because so many investment properties are taken into consideration when the average cash on cash return is calculated.
This is also the reason why it’s so important to learn how to find high cash on cash return Philadelphia real estate for sale. Just because the market is a good place for buying rental property, not every Philadelphia rental property for sale will bring a good return on investment. If you want to find the best rental properties in Philadelphia, you’ll want to figure out the following:
- Where to invest in Philadelphia for high cash on cash return
- How to find high return Philadelphia investment properties for sale
Where to Invest in Philadelphia for High Cash on Cash Return
The first step then to finding Philadelphia real estate for sale that promises a high return is to identify the best neighborhoods in the city. In other words, you need to conduct a neighborhood analysis of the Philadelphia real estate market.
It’s likely that you’re not a seasoned Philadelphia real estate investor who knows the local neighborhoods like the back of your hand. So you’ll need to do some research online. However, gathering neighborhood data manually is time-consuming. Frankly, it’s not the most efficient way to find the best neighborhoods in Philadelphia or any city for that matter. Instead, you have two options:
- Reach out to a Philadelphia real estate agent and ask for some guidance
- Use a Real Estate Heatmap
If you want to find a good real estate agent in Philadelphia, you can start your search here. But if you don’t want to reach out to an agent at this stage, then turn to Mashvisor’s Real Estate Heatmap Analysis Tool.
Finding the Best Philadelphia Neighborhoods Using the Real Estate Heatmap
The first step to finding neighborhoods with high return Philadelphia real estate for sale is to type Philadelphia, PA into Mashvisor’s real estate search engine. Select the city from the dropdown list. Right away, you will be taken to a map of Philadelphia neighborhoods. In the top left corner of this neighborhood map, you’ll see the “Explore Data” button:
Click on it to reveal the filters that you will need to use for your analysis:
- Listing Price
- Airbnb Cash on Cash Return
- Traditional Cash on Cash Return
- Airbnb Rental Income
- Traditional Rental Income
- Airbnb Occupancy Rate
Because our goal is to find neighborhoods with high cash on cash return Philadelphia real estate for sale, let’s use the Traditional Cash on Cash Return filter first. Any neighborhoods that show up in green will have the investment properties for sale that you’re looking for:
You may also be looking for cheap houses for sale in Philadelphia to fit your budget. If so, select the Listing Price filter. Areas that show up in red and orange are the affordable neighborhoods in Philadelphia.
If you want to move your Philadelphia property search along, take a look at this list of the best neighborhoods in the city by property type. It was put together using the same real estate data you can find using our Heatmap Analysis Tool and other tools on the platform:
The Best Philadelphia Neighborhoods for All Property Types
Strawberry Mansion
- Median Listing Price: $112,600
- Price per Square Foot: $77
- Price to Rent Ratio: 9
- Traditional Rental Income: $1,051
- Traditional Cash on Cash Return: 5.9%
Glenwood
- Median Listing Price: $114,870
- Price per Square Foot: $82
- Price to Rent Ratio: 9
- Traditional Rental Income: $1,027
- Traditional Cash on Cash Return: 5.3%
Allegheny West
- Median Listing Price: $124,000
- Price per Square Foot: $112
- Price to Rent Ratio: 9
- Traditional Rental Income: $1,199
- Traditional Cash on Cash Return: 5.2%
Wynnefield
- Median Listing Price: $235,283
- Price per Square Foot: $135
- Price to Rent Ratio: 11
- Traditional Rental Income: $1,807
- Traditional Cash on Cash Return: 4.9%
Penrose
- Median Listing Price: $124,549
- Price per Square Foot: $105
- Price to Rent Ratio: 9
- Traditional Rental Income: $1,176
- Traditional Cash on Cash Return: 4.9%
Start your search for Philadelphia real estate for sale now.
The Best Philadelphia Neighborhoods for Single Family Homes for Sale
Bridesburg
- Median Listing Price: $193,988
- Price per Square Foot: $134
- Price to Rent Ratio: 11
- Traditional Rental Income: $1,538
- Traditional Cash on Cash Return: 3.9%
Northwood
- Median Listing Price: $220,340
- Price per Square Foot: $107
- Price to Rent Ratio: 12
- Traditional Rental Income: $1,542
- Traditional Cash on Cash Return: 3.1%
West Oak Lane
- Median Listing Price: $172,662
- Price per Square Foot: $140
- Price to Rent Ratio: 12
- Traditional Rental Income: $1,174
- Traditional Cash on Cash Return: 2.7%
Wissahickon Hills
- Median Listing Price: $301,171
- Price per Square Foot: $206
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,799
- Traditional Cash on Cash Return: 2.6%
Burnholme
- Median Listing Price: $225,360
- Price per Square Foot: $162
- Price to Rent Ratio: 13
- Traditional Rental Income: $1,494
- Traditional Cash on Cash Return: 2.6%
Start your search for single family homes for sale in Philadelphia now.
Related: 4 Tools for Finding Single Family Homes for Sale
The Best Philadelphia Neighborhoods for Condos for Sale
Cobbs Creek
- Median Listing Price: $159,560
- Price per Square Foot: $104
- Price to Rent Ratio: 11
- Traditional Rental Income: $1,166
- Traditional Cash on Cash Return: 3.5%
West Oak Lane
- Median Listing Price: $182,000
- Price per Square Foot: $151
- Price to Rent Ratio: 12
- Traditional Rental Income: $1,222
- Traditional Cash on Cash Return: 2.9%
Ludlow
- Median Listing Price: $287,692
- Price per Square Foot: $255
- Price to Rent Ratio: 16
- Traditional Rental Income: $1,481
- Traditional Cash on Cash Return: 2.5%
Hawthorne
- Median Listing Price: $378,550
- Price per Square Foot: $344
- Price to Rent Ratio: 17
- Traditional Rental Income: $1,824
- Traditional Cash on Cash Return: 2.2%
Fitler Square
- Median Listing Price: $409,467
- Price per Square Foot: $469
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,893
- Traditional Cash on Cash Return: 1.9%
Start your search for condos for sale in Philadelphia now.
The Best Philadelphia Neighborhoods for Townhomes for Sale
It’s important to note that townhomes for sale make for the best Philadelphia real estate investments. Mashvisor’s data shows that, on average, they provide the highest cash on cash return.
Glenwood
- Median Listing Price: $84,529
- Price per Square Foot: $84
- Price to Rent Ratio: 7
- Traditional Rental Income: $988
- Traditional Cash on Cash Return: 6.4%
Strawberry Mansion
- Median Listing Price: $100,960
- Price per Square Foot: $93
- Price to Rent Ratio: 9
- Traditional Rental Income: $977
- Traditional Cash on Cash Return: 5.9%
Feltonville
- Median Listing Price: $95,978
- Price per Square Foot: $79
- Price to Rent Ratio: 7
- Traditional Rental Income: $1,075
- Traditional Cash on Cash Return: 5.6%
Stanton
- Median Listing Price: $136,971
- Price per Square Foot: $93
- Price to Rent Ratio: 9
- Traditional Rental Income: $1,297
- Traditional Cash on Cash Return: 5.5%
Mantua
- Median Listing Price: $184,467
- Price per Square Foot: $157
- Price to Rent Ratio: 9
- Traditional Rental Income: $1,693
- Traditional Cash on Cash Return: 5.4%
Start your search for townhouses for sale in Philadelphia now.
The Best Philadelphia Neighborhoods for Multi Family Homes for Sale
Hartranft
- Median Listing Price: $303,588
- Price per Square Foot: $148
- Price to Rent Ratio: 19
- Traditional Rental Income: $1,311
- Traditional Cash on Cash Return: 2.2%
Olney
- Median Listing Price: $205,742
- Price per Square Foot: $110
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,190
- Traditional Cash on Cash Return: 1.9%
Start your search for multi family homes for sale in Philadelphia now.
Related: How to Find Multi Family Property for Sale
Note: Want to find the best neighborhoods for buying Airbnb Philadelphia real estate for sale? Philadelphia is one of the few major cities in the US where non-owner occupied properties can be rented out on Airbnb legally. Click here to conduct an Airbnb neighborhood analysis on the Philly market.
How to Find High Return Philadelphia Investment Properties for Sale
Now that you know where to invest, it’s likely that you’ll be looking at a few different Philadelphia real estate listings. So how can you quickly find the one that will provide the highest cash on cash return? Once again, you have two different options:
- Set up investment analysis spreadsheets to start calculating cash on cash return for different income properties for sale
- Continue using real estate investment software
If you wish to use spreadsheets, you may want to do a little digging online. Some real estate investor websites provide ready-to-use spreadsheets. But even if you use templates, this method for finding high CoC return Philadelphia real estate for sale will be time-consuming. Remember, you could be looking at a few dozen investment properties for sale across a couple of promising neighborhoods at this stage in your search. So it’s best to continue with option #2- using Mashvisor’s real estate investment software. Here are the next 2 steps you should take:
Step #1: Set a Few More Filters
Once you’re done using the Real Estate Heatmap, you’ll see that Mashvisor’s search tool has a few more helpful filters you can use. Let’s say you adhere to the above advice and want to buy a townhouse in the Philadelphia real estate market. The next step would be to choose the townhouse filter:
There are a few other filters you may choose to take advantage of at this point including:
- Financing Method (Cash or Mortgage)
- Mortgage Information (Down Payment, Loan Type, Interest Rate)
- Cash on Cash Return
- Cap Rate
- Budget
- Neighborhoods
- More Filters:
- Number of Bedrooms and Bathrooms
- Year Built
- Square Feet
- Traditional Rental Income
- Airbnb Rental Income
- Property Type (Single Family Home, Townhouse, Multi Family Home, Condo/Coop, Other)
- Property Status (For Sale, Pending, Sold, Foreclosure)
Note that depending on which Mashvisor Plan you sign up for, you’ll have access to different filters. For example, if you want to find foreclosures or multi family homes for sale in Philadelphia, sign up for an Expert Plan.
Once you set all the filters, you’ll see the Philadelphia investment properties for sale that match your criteria appear on the right-hand side of the heatmap. There is one more thing to do for this step. You’ll want to click “Sort By”. While you have a few different options here, you’ll want to sort the Philadelphia real estate for sale by descending Traditional CoC Return. That way, high return properties will appear at the top of the list:
Step #2: Use the Cash on Cash Return Calculator
The final step to finding high return Philadelphia real estate for sale is to analyze properties. Keep in mind that the cash on cash return changes depending on your financing method. That’s why Mashvisor’s Cash on Cash Return Calculator has a mortgage calculator.
To access the calculator, click on any of the Philadelphia homes for sale (as pictured above). You’ll be taken to the Property Analysis Page which displays the Cash on Cash Return Calculator. You’ll also get a lot of other property data on real estate in Philadelphia here including:
- General Property Information (Days on Market, Year Built, etc.)
- Tax History
- Rental Income
- Rental Property Expense Estimates
- Cash Flow
- Cap Rate
- Rental Occupancy Rate
- Airbnb vs Traditional Rental Strategy Comparison
- Rental Comps
- Real Estate Sales Comps
- Investment Payback Balance
Learn More: The Ultimate Beginner’s Guide to Real Estate Investment Analysis
With that, you’ll have all the information you need to quickly analyze rental properties. Within minutes, you’ll have identified a top-performing income property in Philly.
Find High Return Philadelphia Real Estate for Sale Today
Sign up for a 7-day free trial with Mashvisor now. You’ll get access to the tools you need to find high return properties for sale in any city in the US housing market.