Help with Foreclosure highest and best offer in24 hours
Hi Everyone,
I am requesting help analyzing a deal before I put my highest and best offer which is due in 24 hours.
I currently owner occupy a 2 unit which will help offset the price of this property when i move out.
The property address is 727 21st Allentown Pa.
Has 2 car garage which other houses don't. Usually just 1
Asking price:139k
last sold: 157k in 2011
ARV: 175-180k if made really nice.
All comps : 160-170.
Preapproved for 3% conventional loan.
Initial offer : asking price and 3% seller assist. 1500 earnest money
Looking to possibly offer 155k no seller assist and $5000 earnest money.
What are your thoughts on this? We are buying it under my fiancees name and will owner occupy for a couple years or few, while investing still hopefully.
Really want to leave my 2 unit and rent the 2nd unit. Do not like living on top of my tenant and we have a 2 year old. We are dying for a SFH. We don't want to lose this deal. Would appreciate anyone's reply or even call me at 484-fourzeroeight7795.
Thanks,
Gavin
Most Popular Reply
I know the market well, I have a small portfolio in the area. The market is extremely tight in the LHV right now. Supply is nonexistent. Rents are insane. I get $1200-$1300 for a smaller house in 18102. $100-$150 for a garage is normal.
I think you can def get $1400-$1500 in this market.
However, this is not a good cash flow buy & hold unless you want to bet on appreciation IMO.
Here's why:
Purchase Price $155,000
Rent $1,600
Gross Income= $19,200
Yearly Expenses
- Taxes= $3,881
- Insurance= $1,250
- Vacancy (7%)= $1,344
- Management (7%)= $1,344
- Maintenance/Capex= $2,000
- Trash= $375
- Rental Permit Fe= $75
Total Expenses= $9,769
NOI= $9,431
Cap Rate: 6.08%
That cap rate is way too low for me. Now if you are buying this as your primary, that's a different calculation. But as a buy & hold, it doesn't make sense to me.