Is this a Great, Good or Below average deal for your Area
I am always curious to hear from other investors throughout the country on whether they would buy a deal like this or not. Ill lay out the details, and Im open to everyones thoughts.
This house(s) is under contract, in the 19348 zip of pennsylvania. 1900's large twin, 2 blocks from the heart of the city- Restaurants/ bars/ etc. I would call it an ideal location for those that wish to be in the middle of the action and have everything within walking distance of their home. Class B neighborhood, mainly a family town with large homes around it. The town also has a large hispanic population because of the jobs available.
The house is a large twin, we are buying both sides of the twin- each side is 4 bed, 2 bath each. Home is brick/stucoo exterior, that is in decent shape-- Interior is a different story!
Numbers look like this:
88,000 purchase on each side--176,000 total
We will call rehab at 40,000 per side ---80,000 total
Since our money is in other places at the moment, we are borrowing, 1 point, and 5% interest --on 175,000 ( 70% from lender, we will bring the rest ) until rehab is completed. Then we will refi this lender out and opt for longer term financing
ARV is easily-230,000 each-----460,000 total
We will hold onto this properties, since I believe the area will appreciate greatly in the coming years, with self management. The homes roof/mechical/plumbing/electrical/etc will be completely new.
Rents $1800 per side -- 3600 per month total
Taxes are 3600 per year per side
Insurance is $1000.00 per year per side
Is this a winner or loser to you and why?