Analyzing a deal w/ house in the family

Member since 2019 · 9 posts · 4 votes

Hi Everyone - I could use help looking at this potential deal. quick backstory - my aunt recently passed away so my mom has been given the house in the will but is looking to sell asap. I'm interested in purchasing this home as my 1st investment. It's located in Pittsburgh, PA and i'm currently running research on rent prices for SFH in the area (I'm anticipating 1k - 1200 per month.)

Would appreciate if others could look at my numbers and let me know your thoughts on it. Thank you!

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Chris Policicchio
Gibsonia, PA · Member since 2016 · 104 posts · 31 votes
6y
Hi @Brandon Cristiano! What kind of feedback are you looking for on your numbers? I took a quick glance and without knowing more about the property or area, it will be difficult to give a lot of feedback. I generally use a little higher % for maintenance and I didn't see anything specific for CapX. If I missed that, sorry. If it's not there, I'd suggest adding it. I'd recommend running your numbers through a BP calculator and see if you get the same results or possibly, it will help you refine your analysis. Also, if market rent is $1200 and you start off there, it might be a bit much to increase by 5% each year.
Let me know if you have specific questions and I'll do my best to help!
thanks,
Chris
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Stefan D.
Park City, UT · Member since 2018 · 127 posts · 126 votes
6y
@Brandon Cristiano Make sure you calculate in the closing costs. You can take this straight to a title co, so you don't need to pay a realtor, but you will have to pay title related fees, the appraisal, and the Transfer Tax, which is around 4.5% (you'll pay half).
Another important piece is to factor in what capex expenses you expect over the next couple of years. You'll want a contractor or inspector to figure out how many years you have left on all the major items (roof, windows, furnace, etc)
Good luck!
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