I have not yet purchased a buy & hold property but am beginning to analyze deals in order to get some practice in. This is a real property that is available now. How are my numbers looking for those familiar with the Pittsburgh area, am I missing anything? Does this look accurate? Any help is appreciated! I want to be ready when the right deal does come along.
PS. If I had the cash, lived in the area and these numbers are correct I would jump on this one!!
Thanks for posting on BP. I looked at this "deal" a while ago, basically I think the general consensus is that the ARV is not necessarily what the market will handle. There is no address, so its not possible to know for sure, but particularly the northside of Pittsburgh has drastically different prices street by street.
I would not count on appreciation and utilities are not accounted for and it is unspecified who pays.
There will be some closing costs in there and the period of rehab could take a while, so account for those holding costs plus PM companies increase repair costs if they manage the project. Again, since I haven't been there/haven't seen pictures I can't speak to the accuracy of the estimated repair costs. It also occurs to me that tenants may not like to live there while the upstairs is being worked on, its hard to say.
If you have more info, I'd be happy to further comment.
Anyhow, best of luck!
@Savannah Lewison overall your analysis looks alright. One thing that I will say is to add your water/sewer bill which will be 35-75 per unit. Then you'll also want to make sure that you are including all expenses. If a prop is in the city then you won't pay trash, but many of the suburbs have a separate trash bill. Or you are going to pay a service to collect it for you. Some municipalities also have stormwater and other expenses.
Also, add insurance. I don't see that there. You'll need to figure that based on each property. A good broker could help you get an idea. @Casey J Burkhead is who I use.
Also prop management will be 8-10% of rents, but will also include leasing fees and lease renewal fees. So the actual cost on here might be a bit higher.
@Jeremy Lee The address of the property is 917 Grand Ave Pittsburgh 15212. Any more feedback with the given address?
@Anthony Angotti This property is in Pittsburgh proper so that means that trash should be provided, correct?
I did not add insurance, thank you for that! Is there a general rule or recommendation you can give me in regards to generally adding insurance on the deal calculator, a certain percentage?
Thank you for all your help! I will be posting another analyzed deal soon!