The incident began just before 11 p.m. on the 2100 block of North 19th Street.
Officials said two men wearing ski masks and armed with guns kicked in the door. The men made their way to the second floor of the home, where they found two men and two women in a rear bedroom.
Detectives said the men were looking for money.
1 dead following home invasion in North Philadelphia
According to investigators, a 52-year-old man was tied up then shot in the back of the head; the suspects then took the second man's pants and left the home with the two women.
"They went through the house and didn't find any money and I guess out of anger they the shot the victim," said Philadelphia Police Captain George Fuchs. "Afterward, they took the two females with them to another residence."
Police said the two armed men then attempted to break into another home on 1700 block of Diamond Street.
"They try to enter that property a male opened the door when he saw the guys with the gun he started running and they took a shot at him. Did not hit him," said Fuchs.
In the scuffle, the women were able to free themselves and run from the scene.
In the meantime, the man from the first home invasion was able to run from the home and flag down police.
Police canvassed the area and found several pieces of outerwear and a ski mask in the 1600 block of North 16th Street.
"What happened was police received information the males who did the shooting were actually taking off their clothes in an alley way," said Fuchs.
Police said it was then officers caught up to the suspects and took them into custody.
Officials said the two women and the man from the original home invasion were able to positively identify both suspects.