All Forum Posts by: Justin Brown

Hey Gang, 

Looking forward to seeing everyone at our July meeting. New-comers are welcome! Bring any deals your working on and we will spend some time looking at them as well as discussing how to analyse market trends, and what makes a good market on a big picture level.  

Details:

When: July 19th, 6:30-8:30

Where: 40 S. 5th St, Allentown PA 18101

Cheers! 

Justin. 

Hey @Cynthia Reddy we have a meet up downtown every third Thursday of the month come join us! 

@Joseph Ranola Of course!  Let me know how I can help you! 

Amen to that guys! Its the third largest city in PA, but doesn't get a lot of press. But thats cool, we want to keep it a secret so there is less competition on the deals! Hope no one is reading this post. @Kyle Maris good luck on your search tomorrow! I wonder if I will bump into you, there are only so many duplexes in Bethlehem :-) 

Good catch Joe, I was light on the management and vacancy. Haven’t seen it, but pictures looked like they were in okay shape, good to rent out, but definitely opportunity for value add between tenants change overs.

At asking price and at current rents its cash flowing even with debt service.  With a cash on cash of 12%. This is just an example of some of the stuff that is available downtown Allentown. 

Here is my calculator report on it with debt service on it. 

https://www.biggerpockets.com/calculators/shared/799536/b3569c30-b49a-4b40-9355-f1face2b2c97

Nice, thats something we can work with. If you do your homework right you can find some deals in that price range for sure in Allentown.  A three unit just came on the market yesterday that looks decent. Here are my numbers... @David Ribardo and @Joe Colasuonno jump in with any edits/comments you might have 

Purchase Price $149,900 (50K a door rule looks good) 

Three units total gross/month 2239 (1% rule looks good) 

Fixed expenses: 

Taxes 2517, 

Trash 1125 (375/unit in Allentown unless private collection deal previously arranged) 

Insurance: 703 

Common Electric: 519

Water/Sewer: 802

Allentown Fee: 225 (75/unit/year) 

Variable Expenses:  

Vacancy: 2239 (One months rent of each place, or 8.3%) 

Management: 1800 (50/door/month) 

CapEx/Maintenance: 3000 (1000/door)

Total Operating Expenses: $12,930 

Total Gross Income: $26,868

Net Operating Income: Op Ex - Gross = $13,938 

Divide your NOI by the cap rate your looking for and you have your offer price. At a 10% cap its not too far off.

The absorption rate in Lehigh county is best in the 100-200K price point right now. At less than a month. 200-400K is at around 2 months so I would say tons of growth. What type of investing are you looking todo? 

Nice article @Joe Colasuonno! 

Thanks @Chris Youssi ! Hard work is a good friend of mine! We hang out a lot! Lol. 

and thanks @Rick Jones that would be great! If your near Pennsburg, have you ever been to Powder Bourne? Best Bacon ever!