All Forum Posts by: Michael Lyons

@Joe Splitrock @Clifton Monte

Yes… exactly what Joe said. Reread it a few times and it makes perfect sense

@Jonathan Dempsey just west of Pennsport

@Eric Greenberg agreed. Thanks for your input

@Eric Greenberg yes i also definitely don’t love the idea that 2 of the units would be occupied with everything going on.

It’s in South Philly, where i’m from. I’m 27. i wouldn’t walk by there at night when i was 15 and still don’t want to walk by there at night AKA it’s most likely going to stay exactly the way it is, but that’s just me personally. I’m sure there are going to be people willing to live in that general area, as it has gentrified a bit

@Nathan Milholin yea i realize my numbers are off somewhere i’m not even really sure where i did it while at work as soon as i was told about it

i drove by it on my way home and it’s in a worse part of the neighborhood than i thought more of a C-/C, although the outside does look okay. so i’m starting to come to the conclusion that it’s not worth it, it seems like the rents are WAY off which leads me to believe the current owner is renting to probably D tenants and the inside is not in good shape

@Kevin M. thanks for the reply and information on the fire alarm monitoring & trash removal, as i did not know that. and yes it is a legal triplex

@Gail K. sorry for the long delay i didn’t get a notification of your reply, but nope it’s a future long term rental. i suspected that i probably shouldn’t furnish it but wanted to see what other people thought.

i am moving out of my primary soon and making it a rental, so not sure if i’m going to leave the furniture in it or take it with me

@Michael Lyons forgot to add... will be virtual property manager as i am local if anything should come up

An off-market deal was just presented to me and i want to see if it’s worth really looking into. It’s a triplex in a stable C+ neighborhood with potential for growth in Philadelphia asking $355,000.

I’m told the rents are $850x2 and $1,000 for a total of $2,700/month. 2 tenets are already in place (both $850) and $1,000 unit is unoccupied. I’m not completely sure on the taxes/insurance, but my guess would be taxes = $2,400/year and insurance = $2,000/year.

I haven’t seen what it looks like yet still working on getting in and seeing it, but the numbers seem like it may work. If i’m missing something or made a mistake please let me know and thanks in advance for any feedback.

NOI = $24,700

CAP Rate = 6.9%

ROI = 6.4% (ballpark 82k DP + closing costs)

CoCROI = 6.9% ($830/month cash flow)

 agreed. i think it’s a great strategy thanks for sharing