2-unit purchase in York PA
Hey everyone,
Closing on my latest rental property in a couple weeks. It's a 2-unit in a good local school district and is ready to go. Should cash flow nicely at around $140/month/unit.
Unlike my prior purchases, this unit will not be owned by an LLC. I am using this strategy to get attractive amortization rate and better cash flow.
The seller has agreed to do my requested repairs so providing that goes well, it's another 2-units in the portfolio :)
Only work on my end is getting tenants and installing a furnace. The building has 1 furnace serving both units, although there there are two gas meters. So the only item needed to have completely split utilities (paid completely by the tenants!) is a new forced air unit.
wish me luck closing!
John
Hello John,
First time poster here. Reading what you're accomplishing is so close to what I want to do that I just had to write. I'd love to hear how your closing went and your progress with getting the furnace installed. Sounds like smart thinking going through that expense now to have the utilities completely split by the tenants.
I was an investor a few years back that had ititial success and then bit off more than I could check at a location too far away. I've since moved to York, Pa and I'm now actively looking to get back in the game as a buy-and-rent investor. I'll be at the York REI meeting at the West York Reliance Fire Hall on November 14th. Just looking to learn as much as I can and then take action. Hope we get a chance to meet as I'd love to hear about your experience investing in York.
Thanks,
Darren
Welcome to BiggerPockets, Darren. I grew up in York. Near YSHS.
John, did you close? Lease it?
@Jon Klaus , yup I sure did close on the property. Nearly rented out now...details below.
Thanks for the follow-up; I have since closed on the 2-unit and proceeded as planned. I had a few unexpected repairs, but this is fairly typical. The furnace was installed without a hitch, and now the utilities are truly separate. I also replaced the carpeting with a nice floor paint in Unit 2, and took care of a few other minor items.
Unit 1 is rented and I have a cash-deposit from a great Section 8 tenant for Unit 2; if all goes well she and her family will move in before Thanksgiving. In summary, it took 1 month to fill Unit 1, and nearly 2 for Unit 2.
Regarding Sec8 tenantsI hear lots of horror stories, however I am sticking to my experience here when I say that there are good and bad Section 8 tenants; it is a matter of screening. I have now had 2 different section 8 tenants, about to be #3. Each have been good people and kept the units in very nice condition. The added bonus, of course, is that much of your rent is guaranteed.
@Darren Smith , welcome to York! I also plan to be at the meeting on 11/14; looking forward to meeting you there. There are opportunities around the area now. Would be happy to help you out!
@John Schmiesing, great to hear things are going so well with your new property. That's can be a challenging time between when you purchase the property and finally have it fully rented.
I've lived in York for 4 years now, but it took this long to get over my last failure to want to invest again. My plan at this point is to spend a month or two learning and meeting people, and then to just start making offers. Last time I took action without quite enough information, but I still feel it's the most important step.
Thank you very much for your offer to help. Very much look forward to meeting you on the 14th.