rental analysis - still need a hand ( newbie newbie here)

rental analysis - still need a hand ( newbie newbie here)

Member since 2020 · 6 posts · 0 votes

OK - Hope I categorized this appropriately!

BLUF: used the BP calculator but inputs (rental history, expenses - still unknown; I guessed) should I set some scenarios and go? tried this!

background: Four plex; gas and water by building owner. high cost; hard to rent?!

one unit rented (the others - no history) high gas bills (adds to each unit a $150 (gas) and water $50 roughly) making it expensive to live there (I think).

according to rent0meter I should be charging $725/ month, making it $925! now with these high utility cost (building systems and bad windows makes it a bit inefficient) will I be stuck without renters? is this reasonable - it’s pittsburgh. with one boiler and 4 units, they really can’t control the cost). some room to do some things there - thermostats for each radiator - roughly $200 a pieces, 14 needed - easy. otherwise ‘double hung’ thermostats - the open the windows if too hot!

I budgeted replacement of 2 bathrooms and 2 kitchens and the replacement of 7 windows - all OK.

should I walk away??

assuming some clarifications are needed here. I’m not emotionally attached to the building, but don’t want to walk away until I have a chance to hash it out with a few pros! need some help walking/ talking this through? thanks

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  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    6y

    @Firyal Kassim, nice to see another lover of "BLUF" here in the forums. Were you in the Marines?

    Not enough info to really give you guidance. Would need to see your entire analysis. Straight away, gotta do something about your emotional attachment. It will lead you to overlook the negatives and make bad decisions. 

    A couple things to think about:

    • Not sure where you're getting the $925 number? Market rent + utilities upcharge? It doesn't really work like that. The market will bear the price it will bear.
    • If you're already doing 2 baths and 2 kitchens, that's a lot of work. Is this a BRRRR? Do the purchase, reno, ARV numbers make sense?
    • Considering the amount of work you're doing, look into mini-spilts for each unit. Many models provide both heat and A/C. This will get you around the problems of 1 boiler and "double hung thermostats." Also, A/C in Pittsburgh will be a competitive advantage.
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