Feedback on potential deal
Hey BP,
I am looking to get started in real estate and have recently come into an opportunity to purchase a property in Allentown that is still off market directly through the seller. Would love to get some feedback to see if it’s in line with my own analysis.
Here’s the property: https://www.zillow.com/homedetails/1342-W-Walnut-St-Allentown-PA-18102/81916084_zpid/
The seller is asking $160k (personally I think that’s high). I would be inheriting the tenants, who according to the seller are decent tenants. Currently renting for 1 unit for $800 and the 2nd unit for $900, tenants pay all utilities except water with no leases in place.
My estimation is buying as is, I’ll have a net cash flow of about $500 with mortgage, insurance, taxes and water utility. There is an unfinished basement, which based on a little research, I believe I can turn into another unit and possibly increase cash flow by another $600 at least.
I’d appreciate any and all feedback from everyone!