Multiple homes on one parcel

[Ryan Ash]

Been exploring some multi-family deals in the "suburbs of Pittsburgh" area for my next investment property, the goal is to find one that needs some cosmetic/light rehab work.  I have one question and a statement: 

1) Statement: Would love to connect w/ any and all folks in the area... Newer investor, one SFH under the belt and looking to focus on multi's for the next few years. Goal is to get a better understanding on the rehab process of the BRRRR, everything else makes plenty of sense, but wouldn't mind chatting about success stories w/ hard money lenders.

2) What's the deal w/ multiple homes on one parcel?  Outside of having 2 of everything (higher cap-ex & maitenance)  Any other draw backs to them? 

Thanks in advance ya'll, cheers! 

[Logan Koch]

Own a few multi's with multi buildings on one parcel myself, and have helped clients buy those types of deals as well. 

Definitely have to budget for the extra capex. The big one is the sewer lines around Pittsburgh being old terracotta. It's a big ticket item on one house, let alone 2 or 3 on one parcel. Exterior gas lines are another that most people don't think about. You see a lot of properties in suburbs of Pittsburgh built in 1950's which nowadays is right around the end of the life expectancy for those if they're original. (Found that one out the hard way).

From a rent perspective you do a lot better though. If its 2 SFH on one lot, or a Duplex and SFH on one lot, you're going to bring in more rent then if all the units were under 1 roof. The purchase price usually is relatively the same, maybe slightly higher in these cases, so your rent to price ratio does a lot better.

Really just have to make sure all the units are legally zoned, have the occupancy permits in place ect. Most municipalities do occupancy inspections at time of sale, but just something to keep an eye on.