Updated over 7 years ago on . Most recent reply
$60k Budget (all-in) -- Is Allentown worth it?
I'm a real estate agent in NYC, and looking to invest in MF -- ideally a BRRRR strategy, but straight buy and hold is fine, too. I've been looking at various areas in the country, including Allentown. Total budget (purchase, closing, any rehab, etc) is about $60k. Would probably use some level of financing, but the $60k is from a HELOC, so the cash flow has to be good enough to cover the debt on the asset, plus the cost of money on the HELOC. Would love to hear everyone's thoughts! Go!
Most Popular Reply
It depends on your risk tolerance and what level of rehab you are comfortable with, but you should be able to purchase property here at a true 12% cap rate if you are diligent and do your homework.
Putting down 60k into a 200k property at a 12% cap rate will yield you $2k per month in NOI and a mortgage payment of about $850. Cash on cash should be about $1150 per month, or $13,800 - a 23% cash on cash return.
Joe