All Forum Posts by: Joe Colasuonno

How many bedrooms for this unit?

@Stephen Kunen definitely a positive thing for downtown

@Justin Brown  You know my rule of thumb on these is always 10% vacancy, 10% management, so the vacancy would go to $2687, and management to $2418.

Puts NOI at $12,872.20, so if you can buy around $130k, you'll be purchasing at a TRUE 10 cap rate.

Thoughts:

Other than that, common electric seems high on this.  If its just hallway lights, should be about half that.  May be able to keep that number down by swapping out the existing lights with some LEDs or do a day/night sensor so they aren't on during the day.  

What is the unit mix?  Any room to bump rents?  How updated are the units?

http://www.mcall.com/business/mc-biz-allentown-city-center-adp-20180613-story.html#nt=oft03a-2gp3

Gonna just leave this here.

It depends on your risk tolerance and what level of rehab you are comfortable with, but you should be able to purchase property here at a true 12% cap rate if you are diligent and do your homework.

Putting down 60k into a 200k property at a 12% cap rate will yield you $2k per month in NOI and a mortgage payment of about $850. Cash on cash should be about $1150 per month, or $13,800 - a 23% cash on cash return.

Joe

you can do ok here with 60k. Would you use it as down payment or buy a single family in cash?

I have a few hundred rentals in Allentown. PM me if you have any questions. Happy to help.

think you have the date wrong, @Justin Brown

Without giving it away. Is it zoned B2 or R-MH?

Shane, I am a full time local investor. The answer to your question isn’t exactly straightforward. I do believe the NIZ will succeed. I have a lot of rental units just outside the boundaries of the NIZ, but that doesn’t mean they translate into attracting the same type of tenants JB gets downtown. I think the answer to your question depends more on the location of your property and a lot of zoning issues that may or may not afford you the opportunity to do what you’d like there. I think I know which property you’re talking about, though. Assuming you don’t have it under contract yet, and aren’t comfortable sharing the address on the open forum, PM me and I will give you a background of the property and the issues you may have in doing what you’re invisioning.