All Forum Posts by: Kevin D.

I don't know about Scranton, but in the Wilkes-Barre area, I don't count on much appreciation, if any.

No problem, @Zachary Corum. Good luck with the property!

I use Maseychik Insurance in Plains. I've referred a few others on BP and they have been happy. Ask for Bryan. You can google the number. 

@Chris K. I'd be curious to see your pro forma on that property also, can you email it to me? (Just curious, there is another school building for sale that could be a conversion.)

@Rao Mu That's not my favorite neighborhood, and I personally do not invest there. Chances are, you will never have any appreciation in that area, and will possibly have negative valuations in the future, so you'll need cash flows (matching those CAP rates) to make the investment make sense.

Thanks @Erich Beyer and @Abdul Azeez..  I've done those analyses, I just wanted to see what other BP members valued the property.  

I have Levered IRR at 28.6%, CoC at 25.8%, and DCF value of $355k.

8 units plus a commercial/retail space.  Assumptions are below.  I'm curious to see what BP members would pay?

3 x 2 BR Apartments @ $700-$750/mo.

1 x 1 BR Apartments @ $550/mo.

4 x Studio Apartments @ $400-450/mo.

Commercial is 1450 sq. ft. and should rent at $11-12/ft.

All units have completely separate utilities, except water.  All residential units are leased, but I do question the quality of the tenants.  The retail space needs approx $5-7k to make it in to a vanilla box.  The commercial space exterior also needs a face lift, but there are grants available for this that will match funds up to $2,500.

Expenses:

Management: 8%

CapEx: 5%

Maintenance: 10%

Taxes: $3400

Insurance: $2900

Levy/Rental Fees: $1000

Sewer: $1400

Water: $1080

Garbage: $900

Dean, shoot me an e-mail or text and I'll send you my property manager's contact info.

Coming from someone who grew up in and lives in the area, there are pockets of Wilkes-Barre and the surrounding area that are suspect. You can probably buy very inexpensively and make money, but it definitely won't be easy money. Conversely, there are a lot of other pockets that are slightly more expensive that you can get a quality renter in and make slightly less money. I'm sure it's like this everywhere though...

The other thing to be aware of, is that you're required to have a property manager if you do not live within a certain radius of the city. I live within this radius, but still choose to use a professional PM because I work full time and choose to outsource that. Feel free to message me if you have any other specific area questions. 

Welcome to the community, Jeremy! I wish you guys the best of luck, there are some really solid rental pockets here in NEPA. 

According to the Census Bureau, in 2000, the population of Luzerne County was 319,218 and in 2010 is was 320,918. Only 0.53% growth, but still growth. I, personally don't take much stock in the numbers that come out between censuses.