Rear building multi family in Scranton PA

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  • Kate Daye RuaneBusiness Member
    Specialist · Scranton, PA · Member since 2019 · 61 posts · 44 votes
    6mo

    Hi!

    Not to sound blunt, BUT this is way too vague of a question, and would require a full CMA. I'm glad to do this for you to help you know if the purchase is worth it or not.

    I would need the following information to give you an actual value: Address, SF, Unit breakdown beds/baths, rented? what rents? I'd also determine market rents for you if it is or isn't... I'd also need to know if the utilities are separated or combined (water/sewer, gas, electric) and what the costs are to the landlord if any are combined, taxes and insurance (I can pull), view of condition, and any pertitinent info such as parking, lot size, neighborhood feel, any updates or items that would add value, and are there any items that need improvement such as foundation, roof, HVAC? 

    A lot goes into properly pricing a home and/or figuring out if it makes sense for a SPECIFIC buyer. I have had many listings that don't make sense at all for 99 of my buyers but make perfect sense for 1. It all comes down to the buyer's long-term needs and strategy. Contact me anytime. 

    [email protected]302-242-8781
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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    6mo

    @NA Landau, a few thoughts:

    1. The devil is in the details. The renovation isn't what is making it different than other comparable 2 unit properties. So, focus on what is different!

    2. For example, how is the parking and access? Sometimes these "back houses" only have an easement to talk in through the front property alongside the house. Other times they are located on an alley with their own off-street parking. VERY different scenarios in terms of someone living there. 

    3. Attributes such as #2 factor into its attractiveness for someone to live there and are specific to this being a "back house" 

    4. If this property is on an alley with its own off-street parking, maybe a small yard, etc so that it functions for a tenant the same way a front house would then there may not be much if any difference in price. 

    5. However, if the only access is walking through the front house property where the tenant has to park on the street 125 feet away and carry their groceries and garbage back and forth through the front property then it is less desirable to a tenant. 

    6. If the property is less desirable to a tenant as #5 states, then you may attract a lower quality tenant, charge modestly lower rent, and/or have a little higher vacancy/turnover. So, the price a landlord (the probable buyer) would pay is likely going to be modestly less. 

    7. Unfortunately, can't give you a calculation to do, but more a line of reasoning to apply to these kinds of situations. 

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  • Richard Golding
    Contractor · NYC/Los Angeles · Member since 2019 · 91 posts · 55 votes
    6mo

    I would treat a rear-building multifamily as a development/construction feasibility question first, not just a rehab estimate.

    Before pricing finishes, confirm zoning, allowable units, setbacks, access, parking, utilities, fire separation, egress, stormwater, and whether the existing lot can support the added structure. Those items can decide whether the project is practical before you ever get to contractor pricing.

    For budgeting, separate site costs from building costs. Utility extensions, trenching, sewer, water, electrical service, grading, access, and fire/code requirements can be a big part of the number on a rear structure. If you only ask “what does it cost per square foot to build,” you may miss the costs that make this specific lot hard.

    I would start with a local architect or civil/structural consultant familiar with Scranton approvals, then get contractor input after the basic path is confirmed. Also talk to local property managers or investors about rent demand for the finished units. A project can be buildable and still not pencil if the added rent does not justify the capital, time, and approval risk.

    And yes this would be my approach to your short and vague question as Kate mentioned haha.

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