DSCR & Non-Conforming Properties – November Philly Market Update – Business, Family & Thanksgiving Wishes

DSCR Loans, Non-Conforming Properties & Greater Philadelphia Real Estate Market Update

I hope you’re easing into the holiday season and enjoying the cooler weather. In this month’s update, I’m breaking down DSCR loans and what investors need to know about non-conforming properties — two topics that have come up often recently and can create amazing opportunities when used correctly. You’ll also find a fresh look at the current Greater Philadelphia housing market, plus a personal update about my family and how the last few months have shaped both life and business. From new listings and closings to what’s coming next year, there’s a lot to share — so let’s dive in!

How DSCR Loans Help Investors Buy “Non-Conforming” Properties

If you’re thinking about investing but keep running into confusing rules about zoning, income, or financing, you’re not alone. Many great investment opportunities don’t fit neatly into traditional lending guidelines. That’s where DSCR loans can make a big difference.

A DSCR loan — short for Debt Service Coverage Ratio — is a type of loan where the lender focuses on the property’s ability to pay for itself. Instead of looking at your W-2 income, the lender looks at the expected rent. If the rent will cover the mortgage payment, you may qualify. This makes DSCR loans flexible and a popular option for investors, especially for properties that don’t fit standard mortgage rules.

A non-conforming property is any property that doesn’t match its official zoning or doesn’t meet traditional lending requirements. For example, it might look like a multi-unit property but legally only be zoned for one or two units. These kinds of properties can be great investments, but they require the right strategy.

Real Examples From Recent Clients

1. “Two Units” That Weren’t Legally Two Units
Client: Sarah (first-time investor)
Sarah fell in love with a fully rehabbed home that was designed like a duplex, two kitchens, two living spaces, but the city still had it zoned as a single-family home. That meant traditional lenders wouldn’t touch it.
After the appraisal came back, we created a simple plan: remove the second stove and add an interior staircase to connect the two floors. This turned the setup into a legal single-family home with an in-law suite instead of two separate units. With that adjustment, Sarah qualified for DSCR financing, closed smoothly, and still kept the flexibility to rent out the lower space in the future.

2. A Tri-Plex That Wasn’t Zoned as One
Client: Michael (experienced investor growing his portfolio)
Michael found a building operating as a triplex, three income-producing units, but the city zoning only allowed for two. Because of that, lenders considered it a non-conforming property.
Fortunately, one tenant was already moving out. We opened up the small studio apartment, removed the stove, and created a shared common area instead of a “third unit.” That temporary change allowed it to meet the zoning definition of a duplex long enough to close with a DSCR loan.
Now that he owns it, Michael has already started the re-zoning process to convert it back into a legal triplex. It can take 8+ months, but once approved, the property’s value will jump immediately, and he can reinstall the wall and door to bring back the third rental unit.

Thinking About a Non-Conforming Property? Let’s Talk.

These kinds of deals can be some of the best returns in real estate, but they require the right plan, the right lender, and someone who knows how to structure them.
If you're curious about DSCR financing, buying a non-conforming property, or repositioning a building to boost value, reach out anytime. I’m happy to look at a property with you and talk through the smartest path forward.
Reply to this email or call/text me — let’s build your investment strategy.

 

Greater Philadelphia Real Estate Market Update
October–November 2025

The housing market across the Greater Philadelphia region continues to shift toward a more balanced state. Prices are still trending upward in most counties, though at a modest pace. Inventory levels are beginning to rise, and homes are taking slightly longer to sell compared to last year. Sellers still hold some leverage, but buyers are gaining increased opportunity as competition cools from summer highs.
The stats below are for each overall County but if you want information about a specific area, please reach out and I can share more exact statistics.

📍 Philadelphia County
The median sale price in the Philadelphia metro for August 2025 was $405,000, up 2.5% year-over-year.
Closed sales declined by 1.7% year-over-year, while active listings increased by 10.9%, offering more options for buyers.
New listings declined by 9% compared to last year, pointing to continued seller hesitance amid affordability challenges.
Source: Contentful Bright MLS / Bright Metro Market Report – August 2025

📍 Delaware County
Zillow reports a typical home value of $355,438, up 2.1% year-over-year.
Median sale price for September 2025 was approximately $360,000, with 1.7 months of supply and 766 active homes for sale.
Homes continue to move quickly — especially those priced under $400K — with a median of 9–10 days to pending.
Sources: Zillow, Long & Foster Market Minute – Sept 2025

📍 Montgomery County
The typical home value is now $481,492, up 2.8% year-over-year according to Zillow.
The median sale price is holding at around $486,500, while homes are spending an average of 20–26 days on the market.
Inventory remains tight with just over 1,100 active listings, but competitively priced homes continue to go under contract within 7 days in some cases.
Sources: Zillow, Market Minute, Redfin

📍 Bucks County
The median sale price for August 2025 was $530,000, a 5.0% increase over last year.
Typical home value sits at $507,035, up 4.2% YoY, with healthy activity in submarkets like Doylestown and Bristol.
According to the Bucks County Association of REALTORS®, the average time on market increased to 21 days, with slight cooling from peak summer competition.
Sources: Zillow, FRED

📊 Regional Overview

County	Median Sale Price (Aug–Sept 2025)	YoY Change	Days on Market	Trend Summary
Philadelphia	$405,000	+2.5%	~50 days	Activity easing, listings up
Delaware County	$360,000–$385,000	+2–7%	9–33 days	Quick sales, tightening inventory
Montgomery County	$475,000–$486,500	+2–3%	20–26 days	Balanced pace, price stability
Bucks County	$530,000	+5%	~21–27 days	Strong price growth, slightly more supply

 

Wrapping Up: A Personal Note | New Business | Thanksgiving & What’s Ahead

A Personal Note
For the first time in more than two years, I missed last month’s newsletter. My father passed away, and while it was expected, it still came sooner than we imagined. My dad was an incredible man—an educator, camp director, funny, outgoing, and deeply devoted to his family. Most of all, he loved spending time with his grandkids.
I took the month to focus on my mom, my family, and honestly, myself. I miss him every day, but I’m grateful for all of you who reached out with condolences. Your messages meant so much. I also want to give a huge thank-you to my wife, Carly, who has been unbelievably supportive, and to my team and fellow Coldwell agents who stepped in to ensure my clients never missed a beat.
My dad loved these newsletters, he was always the first to respond and he constantly told me how proud he was of the father, husband, and professional I’ve become. I’ll carry that with me always.

Business Update
I’m honored to share that I ranked #22 among over 1,000 agents this past quarter, an achievement made possible only because of the amazing clients, like you, who continue to put their trust in me. Even with everything going on, the past month and a half has been extremely active. I put three properties on the market, got three clients under contract, and closed two more. I also have one new listing coming right after Thanksgiving — my parents’ home. We had planned for this transition for a long time, just not under these circumstances. It’s a beautiful home in a highly sought-after 55+ community where properties rarely come up for sale. If you know someone who may be a good fit, please reach out.

Fall Photoshoot Recap + Spring Preview
Thank you to everyone who came out to the fall photoshoot — it was an amazing turnout and a very special day. I’m already planning the spring event, and there will be some cool new additions this time around. Details to come soon!

Looking Ahead to 2026
There’s a lot on deck for next year:
• Flyers and Sixers ticket raffles
• A brand-new twist on my client appreciation party
• More community events and giveaways
I’ll be sharing more in the next newsletter.

Thanksgiving Wishes
As we head into the holiday, I hope you’re able to spend time with the people you love and take a real break from the day-to-day stresses of work and life. Thanksgiving is truly about appreciating what we have and the people we get to share it with.
Every year, I kick off the day by playing football with my high school friends — a tradition I look forward to all year. I’d love to hear about your Thanksgiving traditions too.
Enjoy the long weekend, enjoy the Eagles game on Friday, and thank you, sincerely, for being part of this community.

Warmly,
Brad