You can buy a Philadelphia fixer-upper for under $50K, but they come with a catch

Moneywise

Fri, January 9, 2026 at 5:25 AM EST

7 min read

Colorful old townhouses on historic Chestnut street in Philadelphia Center City — Natalia Bratslavsky / Shutterstock

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A $50,000 townhouse in Philadelphia can sound like a great deal.

But as usual, when something appears too good to be true, it often is.

In fact, several townhouses in Philadelphia are currently listed for $50,000 or less on sites like Realtor.com (1). While these properties are priced well below the $228,621 median list price in Philly, they can come with a host of problems (2).

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A closer look reveals at listings indicates the houses are unlivable, instead requiring complete renovations. This might be more of a project than you'd want to tackle.

Here's how you can invest in real estate without the need to break a sweat — or your budget — dealing with renovations, property management or tenant issues.

Thinking about flipping a fixer upper?

Cheaply-priced homes often need a lot of renovations, and this $50K Philly townhouse is no exception. If you're dealing with a house that has structural or cosmetic problems, you can get a contractor to do a thorough inspection and estimate repair costs — although unexpected costs can still arise.

Talking to a financial expert can help you jot down the major expenses involved in flipping a fixer upper, as well as budget for unforeseen expenses that may arise.

Professional advisors — like those at Advisor.com — can help you create a money management plan. Whether you’re looking to diversify your portfolio or grow your nest egg, Advisor.com connects you with experienced financial advisors who can help you reach your financial goals.

By partnering with a reputable advisor, you’ll gain expert insights into which alternative assets align best with your goals. Once you're matched, you can schedule a free consultation to discuss your financial strategy and explore the investment options available to best suit your needs.

There are better ways to invest in real estate

If you want to invest in real estate without having to take on major remodels there are plenty of easier ways to do it.

Many people may not know that you can invest in the reno projects of other homeowners — or rather the loans they take to complete them. You don’t have to undertake substantial risk and get your hands dirty just in order to profit from fixer-upper projects.

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For example, the Arrived Private Credit Fund, you can invest in short-term loans that are used to finance residential real estate projects, including property renovations, rehabs, or home construction projects.

All loans disbursed by the fund are secured by the residential property as collateral — thereby potentially securing your investment in the event of defaults. Historically, the Arrived Private Credit Fund has paid 8.1% annualized dividends.

Crowdfunding

Apart from money, one of the biggest challenges most people incur when they plan to invest in real estate is the time cost. Especially if you are planning to become a landlord, there are plenty of things you need to keep in mind. From property taxes and maintenance to finding reliable tenants, managing an investment property is not for investors looking for passive income.

However, real estate crowdfunding platforms offer a powerful way to tap into the growing residential real estate market without the traditional hurdles of homeownership.

Arrived’s online platform allows you to invest in shares of rental homes and vacation rentals without taking on the responsibilities of property management.

With Arrived, you can browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate with just $100.

Invest in REITs and real estate ETFs

REITs are required by law to distribute at least 90% of their net income as dividends to their shareholders - meaning you are automatically entitled to a portion of the company’s yearly income the moment you buy its shares.

You may think REITs are a lot of work, but there’s an easier way to invest in real estate through ETFs. These investment vehicles are standardized and traded on the stock exchange, meaning all you have to do is buy shares in order to invest.

With platforms like Robinhood, you can invest in ETFs like the Vanguard S&P 500 to get a start on your nest egg.

Robinhood has 24/7 support, and you won’t pay any commission fees on stocks, ETFs and options. Their platform also offers both a traditional IRA and a Roth IRA, so you can benefit from tax-efficient retirement investing.

New Robinhood customers can also get a free stock once you sign up and link your bank account to the app.

You can pick your stock reward from top American companies, with amounts ranging from $5 to $200.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

Need some guidance on which REITs and ETFs to invest in? Moby can help.

Moby’s stock recommendations are handpicked by its team of former hedge fund analysts who provide top-tier stock and crypto tips reports to keep you up-to-date on what’s moving the markets.

In four years, Moby's stock picks have beaten the S&P 500 by almost 12%, on average.

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Commercial real estate

If you want to branch out from residential properties, commercial real estate can be a solid investment bet.

While commercial properties leased as office spaces have taken a serious hit over the past few years, two sectors have remained surprisingly resilient: grocery-anchored properties and health-care facililities. These sectors are necessity-based, meaning their demand tends to remain strong no matter how the economy shifts.

Commercial real estate has also long been touted as a wise investment for adding stability to your portfolio, outperforming the S&P 500 over a 25-year period.

First National Realty Partners (FNRP) provides accredited investors access to institutional-quality commercial real estate investments with the potential to passively collect distribution income.

As a private equity firm, FNRP acts as the deal leader and offers white-glove service to investors, providing expertise and doing the legwork. The team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart, and Whole Foods, and provides insights into the best properties both on and off-market.

You can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.

You can buy a Philadelphia fixer-upper for under $50K, but they come with a catch