Philadelphia's rowhouse market produces some of the widest flip margins of any big metro. It also has one of the highest transfer taxes in the country, strict rental rules, and a county-level cap that halves how much our lending partners will lend. This page runs the numbers with all three included, and shows where the suburban county line changes the answer.
Philadelphia is one of the most profitable flipping markets in the country on paper. ATTOM's report on the first quarter of 2026 put the typical gross flipping margin in the Philadelphia metro at 62 percent, among the widest of any large metro. Rowhouses bought cheaply, renovated and sold to a steady stream of buyers can still produce real profit here.
But two things take a large share of that margin before you see it, and neither exists in most markets. The first is leverage.
Philadelphia County is one of six counties where our lending partners' underwriting guidelines cap loans at 50 percent of value, instead of the usual 70. Take a rowhouse bought for $150,000 with $60,000 of work and an after-repair value of $300,000. In a suburban county, 70 percent of $300,000 is $210,000, which covers the whole cost. In Philadelphia, 50 percent is $150,000, so you bring $60,000 of the cost yourself, plus points and closing costs.
The cap follows the county line. Delaware, Montgomery, Bucks and Chester counties are not on the list, and a comparable house in Upper Darby or Norristown is financed on standard terms.
The second cost is the city's realty transfer tax. Since July 1, 2025 it has been 4.578 percent of the price: 3.578 percent for the city plus 1 percent for Pennsylvania, one of the highest rates in the country. By custom it is split between buyer and seller, though the city can collect all of it from either side.
On that same flip, your buyer's half at purchase is about $3,430 and your seller's half at resale is about $6,870: roughly $10,300 in transfer tax on one project. Add the extra cash the leverage cap requires, and a Philadelphia flip needs a wider spread than a suburban one to produce the same return on your money.
Philadelphia regulates rentals more closely than most cities. A landlord needs a rental license, must give tenants a Certificate of Rental Suitability, and for most properties built before 1978, which describes much of the city, must provide lead-safe or lead-free certification from a certified inspector when a new lease is signed. Missing paperwork can keep a landlord from collecting rent or evicting.
For an investor who plans to hold, build those steps into the renovation: have the lead inspection done before the new tenant signs, and apply for the license early. A rental with its license and certifications in place is also a stronger case for a DSCR loan, which qualifies on the rent. Our lending partners' DSCR program runs from $75,000 to $2 million, though leverage in Philadelphia County is limited by the same 50 percent cap.
Property tax. Philadelphia's Office of Property Assessment sets values citywide, and a new purchase can prompt a fresh look. Estimate the tax on the city's current assessment for the property, not the seller's old bill.
In Philadelphia County: leverage is capped at 50 percent of value under our lending partners' guidelines.
In the suburban counties, fix and flip and bridge loans: from $50,000, up to 100 percent of cost but no more than 70 percent of after-repair value, with a 600 minimum credit score. Standard pricing under the underwriting guidelines is 12.99 percent and 2.99 points. The 10.99 percent starting rate is available after two loans have been paid off in good standing with our lending partner; a first-time borrower should expect to start above it and earn the way down.
DSCR rental loans: $75,000 to $2 million at up to 80 percent of value outside the capped county, with rates from 5.99 percent on the program page.
Loans close in an entity such as an LLC, and every owner of 30 percent or more personally guarantees the loan. Terms change, so we confirm them for your property before you commit.
Yes, but with less leverage than in most places. Philadelphia County is one of six counties where our lending partners cap loans at 50 percent of value instead of the usual 70, so a Philadelphia flip needs considerably more of your own cash. Suburban counties such as Delaware, Montgomery and Bucks are not on that list.
Since July 1, 2025, Philadelphia's realty transfer tax is 4.578 percent of the price: 3.578 percent for the city and 1 percent for Pennsylvania. It is customarily split between buyer and seller, so a flip pays about half of it going in and half coming out.
On gross numbers, yes. ATTOM's report on the first quarter of 2026 put the typical gross flipping margin in the Philadelphia metro at 62 percent, among the widest of any large metro. But gross margin is before renovation, financing, taxes and selling costs, and the city's transfer tax and leverage cap take a real share.
Yes. Philadelphia requires a rental license for residential rental property, and landlords must provide tenants with a Certificate of Rental Suitability and, for most properties built before 1978, lead-safe or lead-free certification. Check the city's current requirements before you sign a lease.
Their underwriting guidelines name six counties where they limit leverage to 50 percent of value, and Philadelphia County is one of them. The guidelines do not give a reason. What matters for you is that the rule is set by county, so a property across the line in a suburban county is financed on standard terms.
Generally, yes. Delaware, Montgomery, Bucks and Chester counties are not on the 50 percent list, so a property there can be financed up to 100 percent of cost and 70 percent of after-repair value, subject to the rest of the guidelines.
Holding a Philadelphia rental? Our two free landlord books compare what a rental costs to carry across twelve states, including Pennsylvania.
Answer these and your deal goes to our lending partner's team, who will contact you about whether it is fundable and on what terms. By sending it you agree to your details being shared with them. Investment property only — our lending partners do not finance a home you will live in.
Thank you. Your details are on their way to our lending partner's team, who will contact you shortly.
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.
Pennsylvania · How county lines change a loan · Delaware · Maryland · DSCR rental loans