Triplex - North Philadelphia - $44,500

[Ethan Giller]

http://www.zillow.com/homedetails/1802-N-22nd-St-P...

Needs work but is NOT a shell! Just put on a NEW RUBBER ROOF (including replacing all rotted rafters), with a 15-year warranty.  Property is vacant and cleaned out.  Intact systems (hot water heater, boiler).  Price is below comparable properties for this area and condition.

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$44.5K acquisition price

+$2.5K closing costs

+$60K renovation costs

=$107K investment (Estimated ARV = $135K)

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$23,400 annual rent (1,950 monthly rent @ $650/unit)

-$1,500 insurance

-$670 taxes

-$1,200 cold water provided by landlord

-$1,170 vacancy & property mgmt (@10% of rent)

-$2,340 repairs & CapEx (@10% of rent)

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=$16,520 annual return

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$16,520 / $107,000 = 15.4% cap rate

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Keywords: Philadelphia, Philly, triplex, multifamily