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All Forum Posts by: Emily Weitkamp

Emily Weitkamp has started 2 posts and replied 10 times.

Post: Duplex in nicer area - deal too thin?

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

@Casey Miles

Thank you for your feedback! I tend to be too conservative - and it keeps me from looking at a lot of properties. That is why I posted this to see if I WAS being unreasonable. 

@Logan Hassinger

Thank you! The "CapEx" I includedI am assuming is money saved for major expenses - roof, furnaces, water heaters, etc.

That said, I would love to get $100-$150 /door per month. With my calculations that would mean a purchase price of $165000 - $190000. I just didn't know if I was being too ambitious for a "nice" area. It seems that most duplexes in nice areas around here sell at retail prices and not investor prices. Is it even worth making an offer that is $50,000+ below list price? Seems like they wouldn't even consider it!

Post: Duplex in nicer area - deal too thin?

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

My husband are looking to buy a multifamily in an B class area for buy and hold. We know that the cash flow won't be as great for a "nicer" area, but we'd like to manage ourselves and start with a tenant pool that is less likely to be problematic. We have cash for a reasonable down payment but we are considering "house hacking" -- renting out our current single family and moving into one side of a duplex for a year -- to get an FHA loan and use up less cash.

There is a duplex we are considering is in middle class area outside the city in a great school district. Average household income in the area is about 70k-80k. The house is not that old by local standards (60's) and in good condition with some recent updates.

Offer: $240,000

Each side: 3 bed/2 bath, 1 car garage per side, all separate utilities

Rent: $28,800 ($1200/side/mo)

Vacancy: $2880 (assume 10%)

P&I: $1031 (assuming 20% down, 5% interest. would be ~$200 more with FHA loan I think)

Property mgmt: $3111 (assume 12% - we plan to do ourselves, at least at first)

Taxes: $5400

Maintenance & Repairs: $1000 (tenants do lawn care/snow removal themselves)

Capex: $2592 (assume 10% per year of rents)

Insurance: $1200

Total rents - vacancy: $25,920

Total expenses: $13,302

Debt service: $12368

Yearly cash flow: $250 (ugh!)

My questions:

1. What do you think of my input numbers? Too conservative? Not conservative enough? Am I forgetting something? The numbers line up pretty well with the 50% rule so I guess I'm not too far off...

2. I'm having trouble gauging whether improvements to the home could warrant higher rent and increase the cash flow. Rentometer says $1200/mo is reasonable for the area. The units currently look just ok - a bit drab and outdated. New flooring, paint, and maybe some updated appliances in the kitchen could go a long way toward making them much more appealing. However, I'm not sure I'd get a good enough return to warrant the updates. How do you know what upgrades are worth it? 

3. Is this deal too thin? That is my gut but I'm having trouble just letting it go. Should I just expect a thin deal in nicer neighborhoods where small multi-families are uncommon?

Post: Opinions on this property I'm looking at tomorrow

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

Yes, Kyle, if I take out the water/sewer I get around $600/mo cash flow per set. The hills are VERY steep. Actually, my husband said the hills there might be a deal breaker for him too. 

Post: Opinions on this property I'm looking at tomorrow

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3
I know these properties! I've considered them myself but I haven't been brave enough to pull the trigger on anything yet. My analysis showed cash flow around $3000/yr for each set but with traditional financing and assuming is pay water/sewer.

Post: New Member - Pittsburgh PA!

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

Hello and welcome! I am in Pittsburgh too and just starting out. I haven't bought my first investment property yet so you are ahead of me!

Post: New Member/Investor, Washington DC

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3
Welcome!

Post: New Member - Hartland, Michigan - LLC basics?

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3
Hi! I grew up in Hartland...now in Pittsburgh. Welcome!

Post: New member from morris county NJ

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

Hi Jon! Welcome to BP! I'm new here too but learning a lot!

Post: New member in the Steel City (Pittsburgh!)

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

Thank you for all the responses and advice! I'm definitely a "marathon" personality, so I think real estate will suit me in that respect. 

Post: New member in the Steel City (Pittsburgh!)

Emily WeitkampPosted
  • Homeowner
  • Pittsburgh, PA
  • Posts 10
  • Votes 3

Hi Everyone!

I'm a newbie from Pittsburgh learning as much as I can and hoping to become a landlord soon.  I've been reading the forums and listening to podcasts for a few weeks now, but have been interested in real estate for much longer. My husband and I are definitely interested in buy-and-hold, but aren't quite sure which approach to take or which neighborhood to buy. We are thinking of getting either get an inexpensive multifamily in the suburbs just for renting, or house-hacking a more expensive multifamily in the city while renting or selling our current home. So many decisions! I am very nervous about getting started but excited as well.