08/11/2026
How do you know if a property is actually a good investment, or just a good-looking listing?
Here is the breakdown most beginners skip.
Start with rent, not price. What can this property realistically rent for in this specific neighborhood, not what the listing photos make you hope for.
Subtract your expenses. Mortgage, taxes, insurance, and a repair reserve. Philadelphia property taxes are non-negotiable, budget for them from day one.
Do not forget vacancy. Even a great tenant leaves eventually. Build in a cushion for the months the unit sits empty.
What is left over is your cash flow. If that number is thin or negative before you have even accounted for a surprise repair, that is your answer.
The mistake I see most often is investors falling in love with a price tag instead of running the numbers. A cheap property that does not cash flow is not a deal, it is a liability.
Know your numbers before you fall in love with a listing.
Juluia Jackson | Marvin Capps Realty Inc | (215) 869-8555 |
P.S. Comment "Rodney St" for details on my active West Oak Lane listing, fully updated and ready for its next owner.