Pittsburgh Duplex Under Contract... Maybe More Than Its Worth

[Jacob Howell]

A few days ago I was able to secure a contract with a seller looking to get rid of his multifamily home. He's looking to sell due to health issues so agreed to take a look over the property. When I did my analysis i came up with the Maximum Allowable Offer using as listed below. I hope to wholesale this property. 

The owner wanted $89,000 originally but he was willing to accept my offer. I fear that I have offered more than I should have. After looking at the property everything looked great. Only minor issues to deal with (Needs Stove and Fridge in 1st floor unit) and the school district is awesome, one of the top ranked schools in Western PA (South Fayette).  This is a turn key for buy and hold investment. Only thing is that it is not occupied and would need to be filled with tenants. Potential rent you can expect to get $1200 to $1500 per month. 

Would like to get some advice about this deal. What are your thoughts? 

[Dominic Lucarelli]

Another tip for you is to list this property FOR RENT on Craigslist for a week at your projected rent rate. By doing this, you accomplish TWO things: 

1. Test the waters on your projected rent price. Is it too high for the area? Too low? Is there great demand to fill this vacancy?

2. If you want this as TURN KEY, you'll have a list of potential renters you can hand off to your next buyer.

Best of luck