[Calc Review] Help me analyze this deal

[Joseph Platyan]

Hi group,

I am looking for advice on analyzing this single family home which would be my first buy and hold property. It's located in Palmyra PA near Hershey. The area has A rated schools, major hospital, low crime, and good potential for growth. The home is older, built in the 1930, radon levels are at 5.5, but it does have gas heat (most are oil in this area), and window units for air. It could use a little face lift other than that it appears to have good bones. 

Let me know your thoughts! 

Thanks in advance.

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*This link comes directly from our calculators, based on information input by the member who posted.

[Travis Wylie]

When I analyze my properties I generally use 8% vacancy even if I know it will be less. I like 8% because it's 1/12 or equivalent to 1 month vacancy and in the 4 years of being a landlord I have yet to experience a vacancy longer than that in the areas of central PA that I invest in. I think 8% is a good conservative vacancy rate for Palmyra. Being that the property is from 1930's I would also use a higher % than 5% for capex and repairs each.  Also, I didn't see property management on your analysis.  Even if you plan on self managing your rentals you should always include property management.   If you factor in the extra repairs/capex and property mgt. fees and are still happy with your per door cash flow than be sure to put your offer with an inspection contingency since this is your first property.  

Good luck!