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Updated almost 8 years ago,

User Stats

188
Posts
53
Votes
Tim Porsche
  • Investor
  • Denver, PA
53
Votes |
188
Posts

Duplex in Muhlenberg Area of PA - Need Analysis

Tim Porsche
  • Investor
  • Denver, PA
Posted

Hi All!

I have a duplex I'm looking at in the Muhlenberg area of PA. It's in a decent neighborhood, but the schools aren't great. Listed below are the numbers. Could you please let me know what you think? Would love to get some opinions before agreeing to purchase this.

Purchase Price: $89,000

Purchase Costs (with 10% down): $11,000

Estimate Repair\Upgrade Costs: $25,000

Total Cash Investment: $36,000

Unit 1 Estimated Monthly Income: $950

Unit 2 Estimated Monthly Income: $525

Unit 3 (storage) Estimate Monthly Income: $100

Total Monthly Income: $1,575

20% of rent for repairs\capex\vacancy: $315

Net Monthly Income: $1,260

Monthly PITI: $710

Net Monthly Income after expenses and PITI: $550

Yearly Total Income $6,600

Total Cash Investment: $36,000

Cash-on-Cash Return from cashflow alone: 18.3%

Please note that at the price points for rent, after the upgrades I'll do, I'm not planning on including any utilities or lawn care with the rent, so that would be the tenants' responsibility, in case you're wondering why I didn't factor that into the analysis. 

Any advice would be greatly appreciated. Let me know what you think please...yay or nay :)

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