All Forum Posts by: Saran Mandhadapu

@Kidada Glasco

Thank you, I will check them out.

@Account Closed

I have a 5 unit in York Haven and 4 unit (3rd floor can be finished for 5th unit) in Spring Grove that I am closing in Feb. My strategy is to purchase 5+ units only with commercial loan outside of city limits. I am looking for 5+ unit properties in Lancaster, York, Dauphin and Cumberland counties.

How long have you been investing in York County? Is there demand for rental units? I see that crime rate is higher within the York city limits and there are many multi-unit properties for sale in York city.

How are your investments performing in this area? How is the vacancy rate?

Appreciate your insight!

@Account Closed

Hi, How is the residential multi-unit rental market in York County. I just purchased a multi-family home in York Haven and I am under contract to purchase another one in Spring Grove, PA.

Anyone from York County, PA can refer an Electrician and a General Contractor?

Thanks,

Saran

50% rule: At least 50% of your rental income will be spent on expenses.

2% rule: Each month you should earn 2% on your investment. If you purchase a home for 100K, each month the rental income should be $2000 per month.

Some people use 1%, for 100K purchase price, the rental income per month should be $1000.

Look to purchase in other areas if properties in MA does not work.

Here is an example of the property I am purchasing currently in PA:

Purchase price = 140,000, Monthly Rental income = $2600 (for 4 units @ $650 each)

140,000 X 0.02 = $2,800 (this is the monthly rental income for 2% rule)

So this property falls short of the 2% rule but it does not mean it is not cash-flowing.

For this property my expenses are about 56%, so it falls short of 50% rule.

This link as more information:

https://www.biggerpockets.com/blogs/4454/32123-wha...

Yes, I am interested to know -- How do you classify areas/markets into A, B, C and D. I know how to classify the property based on age of the property and amenities, but not the area. 

Experts - please advice.

Saran

@Kyle McCorkel

Thanks Kyle for your insight. I have a 5 unit in York Haven that I just purchased and another one under contract in Spring Grove. I am NOT looking to buy in the City, I am looking for the suburbs with average schools. I think Lancaster, York and Harrisburg City schools are not good and also the crime rates are little higher.

I will consider Lancaster and Cumberland for my next purchase.

@Alexander Alguire

Good Luck. Add the total INCOME from all units (including any laundry and storage income)

Add all expenses (listed below).

Income - Expenses = Net Operating Income (NOI)

NOI - Debt Service = Monthly Cash Flow

Debt Service = Monthly/Yearly mortgage payments

(Annual Cash Flow) / (Cash Invested) * 100 = Cash on Cash Return (10% or above should be good - Try for 15% plus)

Cash Invested = Down payment + Closing Costs (total money out of your pocket)

Cap Rate = NOI / Property Value (8% or above should be good - Try for 10% plus)

Vacancy Loss (usually 5% to 8%)

Property Management (usually 10%)

CapEx (any future big ticket item replacements like Roof, HVAC, Floors etc) -- may be 5% to 10%

Hello,

Calling all investors in South Central PA Market -- Counties of Lancaster, York, Dauphin and Cumberland.

How is the current and future long term buy and hold rental market in this area? Are the rents raising, what is the outlook for 2017 thru 2020? I am in the market for buying multi-family homes of 5+ units.

Any comments, suggestions appreciated!

Thanks - Saran

Hello,

Calling all investors in South Central PA Market -- Counties of Lancaster, York, Dauphin and Cumberland.

How is the current and future long term buy and hold rental market in this area? Are the rents raising, what is the outlook for 2017 thru 2020? I am in the market for buying multi-family homes of 5+ units.

Any comments, suggestions appreciated!

Thanks - Saran