I have an opportunity and I wanted to see what some thoughts were on a possible deal. First I'd like to say I own 2 SFH in OH and they both cash flow nicely and I have a GREAT property manager there that does above and beyond for me. With that here is my possible deal:
The home in question is in Northeast Philadelphia (4517 Devereaux,19135), it is a 3 bedroom, 1 bathroom it currently has a long term tenant (who does not want to leave) on a month to month but would like to sign a 2 yr lease. They pay $975 a month and are good tenants as far as paying on time and maintenance calls. I am a 1/3 owner off paper, my father owns it on paper and my brother is the other, off paper, owner.
My thought was that I'd essentially buy my brother and father out by having my father gift me the equity in the home. For rough numbers I would give my brother $30,000 and my Dad $30,000 which is my estimate of money left if sold and after fees. To be clear. If the house sold to a stranger for $100,000 + we should walk with $90,000 before taxes.
So if that were the case and I were able to get the home with a tenant for the $60,000. The $60,000 would run me about $322 a month on a 30 year loan at 5%. I believe the property taxes are about $1400 a year so $116 a month and then landlord insurance about $1300 a year so $108 a month. So approximately $546 a month going out and $975 coming in. That would leave somewhere close to $429 in cash flow.
I know there are other variables that I am not stating, such as maintenance cost and vacancy variables but am I missing anything huge that would make this a bad or not so smart deal? My unknowns are that Philly is might not be as landlord friendly from 3000 miles away as I'm use to in my deals in OH?
Thank you all for reading and I appreciate any and all input,
I personally don't like the school district that this property is in.
@Account Closed what school district do you like in Philly?!?!
As to the elementary and middle school 19115, 19116 is OK
But as to high schools Center city,.
Huntington valley is great, but that is not Philadelphia school district although just 10 min away