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Updated about 4 years ago,

User Stats

82
Posts
52
Votes
Miranda Micire
  • Real Estate Agent
  • Pittsburgh, PA
52
Votes |
82
Posts

6unit 3br ea., asking 270k, 1.65 dscr, what's next?

Miranda Micire
  • Real Estate Agent
  • Pittsburgh, PA
Posted

Hello! My name is Miranda and I am a Co-Owner of a real estate development company. We are located in Pittsburgh, PA. We are very new! I have identified a property that I'd like to purchase and rent out. It is essentially 6 row houses on one lot, sold all together as one building. They are each 3 bedrooms, 1.5 baths. 5/6 are currently rented with the 6th needing renovated (new floors, windows, kitchen). The asking price is $270k and we have a construction budget of around $220k, including the reno, upgrades to the other units, roof repair, and brickwork to the exterior of the building. We are assuming that we could get an investor to provide us with a downpayment at $120k and then find a bank willing to loan us $360k. 

DSCR would be 1.65, Return on Project cost is 8.93%, cash on cash 14%. The numbers look great, even with current rents in place which are between $800-940 a mo.

We are new to this. What would our next step be? Approach a bank? Approach the investors? I would appreciate any and all advice. Thank you!