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Updated almost 8 years ago,
Duplex in Muhlenberg Area of PA - Need Analysis
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 :)