MFH House Hack in Pittsburgh-First potential deal

[Kalhan Bhan]

After searching for MFH for a while, i feel like i may be onto something. I am looking to house hack a triplex in pittsburgh. Some points to note before i bring up the numbers:

- For analysing, i considered it as if i am renting out all three units. 

- My major concern is that it is a really old building (115 YO) so the appreciation might not be much and i might have underestimated initial repair costs (though the agent says it is a turnkey, i don't believe that after looking at the inspection report). 

- I have added a 10% for property management though i won't be using one at least for the first couple of years.

- I've included a 10K buffer for initial repair costs, not sure if that is a fair assumption.

Here's the good stuff now:

Purchase Price	225000
Closing Costs	5000
Initial Repairs	10000
Down Payment (5%)	11250
Total CASH expense upfront	26250
Loan Amount	213750
P&I (3.65%, 30 Years)	980
Monthly Rent (Income)	2450
Expenditure Monthly
P&I	980
Vacancy (5%)	122.5
Utilities	150
Property Taxes	175
Insurance	125
Repairs, Maintenance	300
Property Management (10%)	245
Total	2097.5
Net Cash Flow	352.5
Cash on Cash	16.11428571

What do you think?

[Dominic Lucarelli]

Personally, I'd add extra to the initial repairs budget. You just never know what could be hiding in those old walls. 

What area is this triplex in? Again, personally I've assumed a higher vacancy rate (10%) and repairs (10%) in all my numbers, just to be conservative. Again, your utilities cost seem just a tad low. $50 average for water per unit + sewage costs + trash pickup. Will you be cutting the grass? If not, add $30+

Have you seen it yet? Never assume turnkey is absolute. Turnkey in Upper St. Clair is different from turnkey in McKeesport...