Pittsburgh area - 4 small deals - what would you pay?

[Karolina Powell]

In talks on four different properties.  Based on the below information, what would you be offering for these?

Deal #1 - SFH, 3BD/1BA

Ask: 250K

Will rent for: 1750/month

To immediately rent it just needs some paint and some floors to the tune of ~5K.  Will rent for 1750/month.

Capex items needed soon: roof, water heater, furnace

Area: A area, appreciation is at about 5% a year but average home price is ~$500K so this home will appreciate faster, this will have multiple offers on it

Deal #2 - mixed use, small office with a 3 bedroom and a 1 bedroom over it.

Ask: 325K

Currently fully rented on one year leases, bringing in 4775/month but only one tenant pays their own utilities plus owner is responsible for snow removal and landscaping. 

If fully updated, market rents could be 5K a month plus utilities etc.

The office space is currently being used as a medical office and it's a block from the hospital so there is always a good pool of rental candidates.  B class area.  Appreciation ~4% annually.

Capex items needed: new roof, parking lot needs concrete fixed and asphalt resealed - ~30K in work

Deal #3 - SFH, 2BD/1BA

Ask: 65K

Cat smell everywhere, needs new paint and flooring, needs new gutters.  Would split the one large bedroom into two smaller bedrooms. Will need a roof in the next five years.  Estimating about 30K in work.

2% annual appreciation, C class neighborhood.  I own the property next to this and it appraised at 105K most recently.  Rents for 1200/month plus utilities which is what I could get here.  

Deal #4 - SFH, 3BD/1BA

Ask: 80K

Needs new paint, flooring, new kitchen, and bathroom, and roof will need to be repaired.  About 40K in work.

Class C neighborhood.  I own the two homes next door and rent them for 1425 and 1350/month plus utilities.  3% annual appreciation.

I would be putting 20-25% down on these and would be cash out refi-ing from some other properties for the down payment or possibly paying cash for deal #3+4.  I currently have $2MM in 14 properties, 21 doors, and am 64% leveraged.

Looking forward to hearing some ideas on what to offer!