Friend of the family has this rental property for sale. He bought in 2010 for either 67000 as all websites indicate or 100000 as he was throwing numbers out at a dizzying pace. Currently the house estimates for 166000 on most websites, however I don't put much faith in those. He's asking 159900 obo. I think it may be worth 115000 to 125000. I used the worst numbers for outgoing costs and the worst numbers for incoming costs and came up with 236 cashflow per month. He said he's had as many as 5 units in this house but primarily 4 with 2000 gross and about 1900-2200net cash flow each month. Good location and a solid built house 1930. The real turn off is the condition of the living spaces. As you would imagine the few carpets need replaced and it could use paint but, there is so much weird remodeling that has gone on here in the last 80 years and wear and tear I'm shying away from this. I do not have time to put into the property. Looking for more of a turn key rental to start. Apparently he has rented it out in the current condition and I suppose there are plenty of renters that don't care. His reasons for selling are valid so I know he's not trying to swindle but I believe he's not going to say no to getting more than its worth. The only reason this place would be worth that much is for the potential cash flow. If I were buying this to appreciate it would need a full flip and I'm not going to get into that niche/strategy at the moment. Here is a copy of my report. Guess I'm asking should I bother to find an appraiser? Property manager? No seller financing here, I would have to pursue other avenues of financing. If I could net around 1000 cash flow per month its seems logical but, 4-5 units not always rented out and only getting 236 doesn't seem like a good first investment. Plus the basement rooms require access through the first floor kitchen area. This place is laid out more for a group of friends who all want to have there own shower and kitchen but hangout in the first floors living and dining room area. Like a frat house or something.

1803 Harlansburg rd, new castle , pa 16101

0 bedrooms, 0 bathrooms.

Up to 5 units. 1 large on the first floor, 1 1/2 bath. 2 med on second floor 1 bath each. 1 small on the third floor bath unknown. 1 small in the basement 1 bath. Not sure if the garage is included. Probably not. House is structurally strong well built, nice area. Interior is less than desirable. Needs normal paint and carpet replacement. Not fancy inside. Everything is unlevel and quick and dirty handyman work. The foundation is good though house shows some sinking, like the floor sloping in one corner of the room.

Purchase Price:

$159,900.00

Purchase Closing Costs:	$2,000.00
Estimated Repairs:	$5,000.00
Total Project Cost:	$166,900.00
After Repair Value:	$159,900.00
Down Payment:	$31,980.00
Loan Amount:	$127,920.00
Loan Points:	$0.00
Loan Fees:
Amortized Over:	30 years
Loan Interest Rate:	5.000%
Monthly P&I:	$686.70
Total Cash Needed By Borrower:	$38,980.00

Monthly Income: $1,900.00	Monthly Expenses: $1,663.04	Monthly Cashflow: $236.96	Pro Forma Cap Rate: 6.64%
NOI: $11,084.00	Total Cash Needed: $38,980.00	Cash on Cash ROI: 7.29%	Purchase Cap Rate: 6.93%

Total operating expenses:	$976.33
Mortgage expenses:	$686.70
Vacancy:	$133.00	Repairs:	$190.00
Electricity:	$75.00	Water:	$125.00
Sewage:	$210.00	Garbage:	$75.00
Insurance:	$60.00	P&I:	$686.70
Property Taxes:	$108.33

Financial Info

Income-Expense Ratio (2% Rule):
1.14%

Total Initial Equity:
$31,980.00

Gross Rent Multiplier:
7.01

Debt Coverage Ratio:
1.35

Analysis Over Time Hide Assumptions

Typical Cap Rate

/year
Expense Increase

/year
Income Increase

/year
Property Value Increase

Year 1	Year 2	Year 3	Year 4	Year 10	Year 20	Year 30
Total Annual Income	$22,800.00	$22,800.00	$22,800.00	$22,800.00	$22,800.00	$22,800.00	$22,800.00
Total Annual Expenses Operating Expenses Mortgage Payment	$19,956.43 $11,716.00 $8,240.43	$19,956.43 $11,716.00 $8,240.43	$19,956.43 $11,716.00 $8,240.43	$19,956.43 $11,716.00 $8,240.43	$19,956.43 $11,716.00 $8,240.43	$19,956.43 $11,716.00 $8,240.43	$11,716.00 $11,716.00 —
Total Annual Cashflow	$2,843.57	$2,843.57	$2,843.57	$2,843.57	$2,843.57	$2,843.57	$11,084.00
Cash on Cash ROI	7.29%	7.29%	7.29%	7.29%	7.29%	7.29%	28.44%
Property Value	$159,900.00	$159,900.00	$159,900.00	$159,900.00	$159,900.00	$159,900.00	$159,900.00
Equity	$33,867.29	$35,851.13	$37,936.47	$40,128.51	$55,847.23	$95,156.79	$159,900.00
Loan Balance	$126,032.71	$124,048.87	$121,963.53	$119,771.49	$104,052.77	$64,743.21	—