All Forum Posts by: Brandon Miller

Over the past 9.5 years, I've dedicated everything to slowly building and maintaining a portfolio of rental properties. The properties were bought as cash flow properties in an area that traditionally didn't see appreciation.  Over the past 2 years, the housing prices have nearly doubled and the trend looks to be continuing as 4500+ jobs have been brought to the area.  The rents have steadily gone up over the past 5 years and really escalated over since 2020.  During the past 2 years, people have been fighting over apartments in this area, as there are simply none available.   Most of these units have been updated and are among the nicest on the market when they're listed.  The properties have been well maintained and taken care of.  Other opportunities have presented themselves though, and it's time for someone else to profit from these units as I have. 

I personally have a portfolio of 37 units in the Pittsburgh area (30 units) and the Akron Ohio (7 SFH) that is cash flowing $26,600 per month. Both cities are professionally managed, occupancy is currently at 98%. (one unit came vacant this month in Akron). The Pittsburgh portfolio is a mix of Single Family Homes, duplexes, triplexes, quads, and a 5 unit and a commercial storefront. I'm setting the price at the 1% rule assuming the 50% rule which works out to be a 6 cap. As Grant Cardone says: Follow the 1% rule and you'll make money. Price for these units is $2,660,000

Opportunity to buy 3 more portfolios in the Pittsburgh Area!!

I've also been working with 2 other investors in the exact same area maintaining their units and a third investor in a hotspot B area of Pittsburgh which is turning into an A location (this will be Portfolio 4).  We would prefer to sell all of the portfolios together, but it's not a deal breaker if not.

Portfolio 1:  37 units, gross rents $26,600.  Occupancy 98%.  Priced at $2,660,000

Portfolio 2:  19 units, gross rents $15,500.  Occupancy 100%.  Priced at $1,550,000

Portfolio 3:  53 units, gross rent $24,500.  Occupancy 85% -Vacancies due to some units awaiting rehabs.  Priced at $2,4500,000.

Portfolio 4:  19 units, gross rents $17,000.  Occupancy 100%.  Priced at $1,700,000

Please reply or email me at bmiller0718 at gmail  to get more info on them.   Again, our preference is to sell them all together but not a deal breaker if not.

Looking forward to hearing from you!

Brandon

House for sale in Plum Boro.  Good residential neighborhood with a good school district.  Nice back yard and 1 car integral garage.  House is on a corner lot with adequate street parking if you fill up the garage and driveway. Furnace, AC, Washer/dryer, rear covered porch...

$77,000.00 asking price
$1,685 est taxes (Zillow)
$12,900 is the estimated Gross Annual Income

Repairs needed to house for rent: ($3500-$5000)
Cleaning and carpet cleaning
Repaint interior
Remove carpeting from bath and kitchen and replace with a roll out (or flooring of your choice).
Minor landscaping and new stones in driveway
Value: $90k-$100k

Estimated repairs to bring to top of market: $35k, ARV $125k (top of market rent is $1250/mo)

The house was owned by an elderly lady who moved in with her family.  The house is well maintained but could use updating to sell on the market.  Perfect for rental.  From my walk through, it looks like the house would only need a quick paintjob, carpets cleaned, and a new floor in both the kitchen and bath (currently carpets) to be ready for rental.  Rents in the area were professionally estimated to be between $840-$1250, with this house likely receiving $1085 in its current state.  Rental estimate and additional pictures will be provided upon request.

Duplex for sale in North Irwin.  Units have been vacant for the past couple of months to get unit ready for sale.  Unit is in working order and is ready for immediate rent.  Previous Tenants were paying $600 and $629 in monthly rent, i believe rents are low but cap rate is figured at previous rate.  Utilities are separated out and owner pays none.  Roof, furnace, windows and flooring replaced about 5 years ago.  1 unit has a dishwasher, the other unit has attic access.  2 off-street spots and plenty of on-street parking (corner lot).  Street is not a busy street and parking is not an issue.

$1,229/mo
-$129 vacancy (10%)
-$80 insurance
-$80 tax
-$65 capx (5%)
-$129 maint/repairs (10%)
--------
$746/mo (13.16% cap rate)

If interested, please message me!

thanks

Brandon

*Square footage is estimated.

Thank you guys so much for all your quick replies! It's helped out quite a bit.  

I see what you guys are saying... With rents under $1k/unit I have to re-strategize how to lessen the maintenance and repair costs so they don't eat up the saved up cash flow. Again what I'm hearing is to start getting single roof multi unit buildings where each unit is returning closer to $1k/mo ...

Brandon

Originally posted by @Austin Youmans:

What kind of financing are you getting?

It seems like a decent deal but it really depend on your financing.

Do you mean the BP calc said to offer only $85?

Are you paying utilities?

Thanx Austin,

Financing is 100% purchase price at 6%apr (family deal)

The BP call said that at full asking price I would be loosing money. If I were able to get it for 85 then it would profit around 55/door. 

Tenants pay utilities

Originally posted by @Tony Hardy:

What's stopping you from pulling the trigger?

 I was always under the impression that anything less than $100/door isn't worth your time...  You don't subscribe to that theory?

The deal is that there are 4 units (2br each), the place is fully rented and needs zero work to keep rented.  It will need a little plaster and paint work when/if the tenants turn over.  The place brings a monthly rent total of $1,950 and the asking price is $109,500.  The property has a 2 unit townhouse then has 2 individual 2 bed room houses all deeded as a single lot.

When I run it through the BP Rental Calculator it's telling me that if I can get the place for $85k, if I assume 8% vacancy, 7.5%CapX, 10% Maint/Repair, and a $185/mo insurance bill, it's telling me I'll still net less than $55/unit monthly.  How can this deal still be not so good?  Is it because I'm borrowing 100% purchase price?  I can't imagine this is actually a bad deal.

Although I know I should't pay for assumed rent increases, but I'm pretty sure they're about $75-$100 light.

Would you do this deal?  If so, what am I not focusing on that I should be?

Brandon

I have a bachelors in economic from allegheny college in 02. I've been involved in family business and entrepreneurship since my teens. I used to own a remodeling franchise and I've also worked in retail management. Been involved with Real Estate since 2013 part time. Ramping up to make it full time now. Also going through the licensing process. Hope this helps! Brandon