All Forum Posts by: Joe Colasuonno

Sorry they are all sideways.  I rented the top two one bedrooms for $795 each and the 2 bedroom with the parking space for $1050.  

Ended up being all in with my renovations for just under $80,000. The NOI is projected to be just around $22,000 per year, making this a 27.5% cap rate. I was able to get it appraised for $160,000 which I thought was low considering the NOI, and refinanced it for $100,000.

It has been fully occupied for 1 month now.

Haha not either Joe C you are referring to.  And I don't post often, I have alerts on my phone for when anyone is talking about Allentown, PA and try to offer some insight when I have down time.

Usually in that area we try to be all in for under $35k a unit but if its been really well maintained, your numbers are ok. 

Numbers arent bad. I am in this market also. Your expenses are conservative and responsible. Only thing I see missing is if there is any common area electric.  I also factor in 10% vacancy.

In Allentown we use a 10% vacancy rate for center city properties, although, right now out of about 400 rental units in center city we only have 4 vacant and 5 move ins for the 1st.

You cant get the numbers to work because those units should be priced much lower.  

Karen,

Further west you go, the better the area gets, however in recent years, even 12th and 14th Street can get a little rough.  If you are looking for performing assets in these areas, you should be looking in the 30-50k range per unit depending on level of finish and upkeep.  If you're looking for stuff to renovate, you should be looking for 15-30k range per unit (upper limit reserved for very large apartments with very good bones, off street parking etc.)

Joe

What kind of advice are you looking for?

@Cal H. I hope the area appreciates as well! Feel free to PM me when or if you're going to be looking for any other deals, I'll be happy to give you some insight. I also may have some stuff I or someone I know will be willing to unload that may make sense for you.