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Updated almost 5 years ago,
Pittsburgh Duplex Analysis
Hey BP Community,
So I am in the phase of analyzing properties and understanding the market around me further. Last night while looking at everything, I ran across this piece that was just posted yesterday and would like some advice:
https://www.realtor.com/reales...
After running the numbers, it showed an appr $350/mo cash flow and 23% CoCROI. There were a few things assumed on this, which make me question how good the numbers look - assumptions being that I could negotiate to a purchase price of $90k and that each unit would get $700/mo for a 1br/1ba.
That said, here are the questions that I have (I understand that some of this will come more naturally with better understanding of the local market, but as I build that knowledge, I'd love to see what people here have to say):
- Are these assumptions too aggressive? Am I setting myself up for failure by not always putting in worst case scenario?
- Because this looks good on paper, what are the things that I should have prepared prior to making a deal in order to strike while the iron is hot? Assuming I come across properties like this when I'm ready, I want to be able to capitalize as soon as they hit the market and present an offer ASAP. (Also, meeting with lenders, agents, and other stakeholders is on my To Do list for Feb)
- Is Realtor.com and the other websites a realistic place to find deals as they hit the market? Or will I be in too large of a pool of people....and get eaten alive as someone who is new to this?
Thank you all for any comments that help my learning process. While I know that there will be a steep learning curve when I get started (my timeline is mid-year), I'd like to mitigate the mistakes I make, to ensure that I don't get frustrated too bad in the beginning!