All Forum Posts by: Anwar H.

1327 Lehigh St, Easton PA is a 4 unit. 2x 2bed 1 bath, and 2x 1 bed 1 bath. Current rents for all 4 units are around $4,150. Seller says it is way below market rent, and I agree. He suggests that projected rents would be $5,400. But I think they'd be around $4,800 (conservative estimate).

Seller is also claiming there are no common electricity at all- which is hard to believe, considering there's common gas, water and sewer. and most likely a common area electricity. For my calculation, I've assumed $1200/yr utility payments

Seller is asking for $5,25k, but according to my calculating a fair price at 7.5% cap rate woud be $4,80k.

What do you guys think? Please provide any thoughts on how to improve my due diligence process.

Below is the breakdown of the math I did:

Thanks @Matthew Morrow for the reply.

I just closed on a 4-plex in Allentown, PA, which has single boiler+heating system for all 4 units. If we were to install 3 more high efficiency heaters that also boil water. Will the price be $7.5k*3=$22.5k? I guess that'll be a big upfront expense, to save on $200-300/month savings

I'm curious, how much does it cost to divide up the heating system so the tenants pay for their own heat bill? There must be cost efficient way to do that.

Great list. Do you mind sharing some cities, which fulfill all of your listed criteria? 

I'm planning to buy my first investment property in Lehigh Valley area. I'm new to RE investment and new to area as well, so looking for some recommendations for good RE agent, who has experience with investment properties (ideally an investor him/herself), who could not only help me find a good deal but can also guide/mentor me.