Considering investing in Philadelphia residential real estate? Despite news reports about a downturned real estate market, there is no better time than today to get started.

Factors to consider when choosing the best real estate investment opportunity include:

• How long you want to hold the property
• What areas are the best for your situation
• Whether you want to “flip” the property or develop and improve it over time while renting to a tenant

If you plan to purchase Philadelphia real estate and rent your property, you may want to invest in Philadelphia’s developing neighborhoods, such as the Art Museum neighborhood, including the communities of Franklintown, Spring Garden, Fairmount, Brewerytown, and Francisville. These areas are enjoying a renaissance that attracts young professionals eager to increase property values.

For many Philadelphia real estate investors, the best neighborhoods are those in close proximity to the city’s major medical schools, including Hahnemann Medical College, Thomas Jefferson University, University of Pennsylvania School of Medicine and The Temple University Medical School, opening in May 2009.

Investing in residential real estate in Philadelphia can be highly lucrative, but it is not without its risks.