Running numbers on Small Multi Deals in Pittsburgh

[Logan Koch]

Hello BP members ,

I am writing this post to ask to double check if there is any important things to consider when analyzing deals in the Pittsburgh area. My family has a few properties under our belt in the Central PA area. I moved to Pittsburgh a few months ago, and am looking to expand our portfolio in this area. I just wanted to present how I generally run my numbers before diving deep into a specific deal, and see if there is anything that would be edited for this area. Thanks!

Vacancy 8%

taxes: given

Insurance $800 for 2 units or cheaper property and upwards of $1,500 for 4 units and more expensive

Sewer/Water: $1500 for duplex and I add $500 per extra unit  (ex; 4units+$2,500)

Garbage: $500

Electric/Heat tenants responsibility if sub metered?

Repairs/Maintenance: 8%

Cap Ex: 7% 

Property Management: 10% 

What would be a ballpark estimate for lawn care and snow removal on an average size lot for small multi around the city? 

Thanks!

[David Lee Hall, III]

Garbage seems a bit high. I am only doing SFH but it usually is around $150-250 a year that I have seen. I usually mow my own during vacancy times but last year my schedule did not allow this and I was paying $45 every 10 days. Most services I inquired with were $40-80 per visit. Since you are from PA I assume you are good with finding the mills for all 3 taxes needed to run numbers. That can throw some out of state folks.