All Forum Posts by: Mitch Pascarella

Thanks @Jake Tovey. Yes that would be great & worth a shot. I currently have a few feelers out, but have yet to get in touch with anyone. I do have a call with the seller today. I'll shoot you a pm. 

Thanks all. This information was great to get in front of me, whereas I may have not thought about them until they popped up as an issue. I'm reaching out to the seller to move forward. 

Thank you all.

This home was built in 1949 & the structure seems to be in good condition. Granted, I’ve only have the opportunity to do a drive by on this location. With tenants currently residing in this property, I am going under the assumption that major repairs wouldn’t be immediately for each unit, but that is up in the air until I do a walk through.

Is it out of the ordinary to request information with regards to tenants this early in the process? Of course that information would be an important factor to me, but wasn’t sure if these questions would be able to be answered early on. I used the monthly income of 1200 from both units, which seems to be below average for this amount of bedrooms in this area.

As for the exterior maintenance, lawn care etc. I plan to do this in the beginning. This location has a very small yard & is minutes from home.

Thanks @Jake Tovey. At first I will be managing this property. This will be mainly to grow experience, as well as, I do think I can handle this small workload as a beginner. Understanding in the future this could change as my portfolio grows I could set aside 8% for management fees, so if/when that times does come to transition I could easily do so. 

Being the first property, would you all recommend going through an investor friendly realtor or would you have any experience on tackling this alone? 

I appreciate the comments.  

Thank you Sarah, this definitely helps.  

Thank you for the response @Sarah Brown. I should have used another term rather than "assumed". This property is listed slightly higher $69k, but I'd like to offer $61k. Even at full asking price, I am still reaching my return expectations. This property doesn't seem to show any immediate repairs, but that could vary after further inspection. 

As for you minimum return expectations, are you creating this minimum cash flow by personal preference? 

Good morning all,

I am relatively new at real estate investing. For some time, I've been reading & watching BP podcasts regarding rentals. I feel that I've done most of the ground work, minus actually buying a property. My goal is to make my first investment at the beginning of 2020, but I am in need of some guidance from you all. Recently I had found a duplex near my house that is currently fully rented. I'd like to get some input on the numbers I worked together below: 

Purchase Price (assumed) - $61,000 

Down Payment - 20% 

• Monthly Total Rental - $1,200
• Mortgage - $227
• Tax - $110
• Ins. - $75
• Vacancy (7%) - $84
• Repairs (5%) - $60
• Cash Flow - $644

Cash on Cash: ~55% assuming additional cash for fees 

NOI - $787

Cap Rate - 15.4%

Thoughts? To my eye, it seems like a deal that I would benefit from, but I am concerned about an unaccounted calculation on my part. I'd like to add that I am from the Pittsburgh area. 

Thank you.