First Investment - Pittsburgh Duplex

[Tim Andy]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Carnegie.

Purchase price: $70,000
Cash invested: $17,500

This duplex was my introduction into Real Estate. A property manager helped me find and buy this deal. It wasn't a home run but it got my foot in the door of investing.

How did you finance this deal?

Conventional 30-year mortgage

[Tim Andy]

@Clayton Hepler Currently I'm looking for something >= 15% COC. For my first investment I was looking at a few specific areas in and around Pittsburgh and for a multifamily. We found this on the MLS it had been sitting for a while so we were able to get it for a price that worked for me. The lawncare and water/sewage bills have eaten into my return on this one so I'm only seeing about 9% COC(after accounting for Vacancies/capEx/Maintenance) but the rents need to be raised once the current economic events return to "normal". Below are my numbers on this deal. I've since transitioned to the BRRRR method and I'll have some posts on the numbers I'm seeing on those deals after I refinance the two I own outright in the next month or two. On my BRRRR deals I should be leaving at most a couple thousand dollars per deal( less than $3,000) and they will cash flow between 200-300/month.