In the Philadelphia metro area, cap rates for multifamily properties typically range from 5-8%. Neighborhoods like Kensington, Frankford, and West Philly often offer higher yields (6-9%), while premium areas like Rittenhouse Square and Fishtown command lower cap rates (4-6%). Always benchmark against comparable sales in the same sub-market.

Most commercial and investment lenders require a minimum DSCR of 1.25x - meaning your NOI must exceed your annual debt service by at least 25%. DSCR loan products often require 1.0x-1.20x. A DSCR below 1.0x signals negative cash flow and will disqualify most financing options.

When you enter a Philadelphia property address and click "Lookup Taxes," we query the City of Philadelphia's Office of Property Assessment (OPA) database in real time. We retrieve the official assessed value and calculate the estimated annual tax using the current millage rate (city + school district combined, approx. 1.40%). The result is automatically filled into the Property Taxes field. If the address is not found or you are analyzing an out-of-city property, simply enter the tax amount manually.

Philadelphia's overall vacancy rate for residential rentals typically runs 5-8%. For a conservative underwrite, use 8-10% to account for turnover, credit losses, and potential extended vacancies. Properties in high-demand corridors (University City, Northern Liberties, South Philly) can run closer to 3-5%.