McKeesport BOGO: buy a ½-remodeled duplex_get a rented SFR free|30%CAP
3 2BR/1BA (total of 6BR/3BA), 2 buildings:
- 4/2 duplex in the front (Jersey Street) (vacant, ½-remodeled)
- 2/1 SFR in the rear (Apple Alley) (rented)
Make money from the “bonus” long-term rental in the rear while you do cosmetic work on ONE of the duplex’s units; 1 unit already remodeled in 2018.
All-in including purchase price: ≈$70k
CAP Rate at that point = low: 15.26% (NOI: $10.7k); high: 30.48% (NOI: $22.1k)
-2BR market rent for units of that size (all ≈1,100-1,300 sq.ft.): $875/unit ($2,625/month) **Sxn.8: about the same ($865→$979)
-keep it un-updated & still collect a minimum of 1,625/month (what the properties paid collectively before 2 vacant units); rental range from $1,625→$2,625/month:
Large living spaces: >1,250 sqFt. per DX unit; 1,088 sqFt. in SFH.
- 1st DX unit: vacant; remodeled (2018)
- 2nd DX unit: vacant; has some newer parts
- 3rd unit: rented; (2/1 SFR in rear: “2919 Apple Alley”) in decent shape
- tenant pays electric
New furnaces + H2O tanks!
Needs about $5k per unit in updates for better rents.
#s:
- AS-IS potential CAP: >15% (most recent rents were $1,625 total [$575/$575/$475])
- CAP@ARV: >30%
- NOI@ARV: $22,067
- actual expense breakdown available
*live in one duplex unit OR the single family, rent the others
**make money from the bonus long-term rental in the rear while you do cosmetic work, no matter if you’re an investor or on-premises landlord/homebuyer
***use any of the three units/house for a family member
- Taxes: $1,633
- Electric: Updated
- Plumbing: Updated
- Kitchen: (1) 2018; (2) need some updates
- Bath: (3) Need cosmetic work
- Roof: Good
- Furnace: (2) New; (1) good
- Hot Water Tank: (3) Newer
- Windows: Mixed
- (3) 2 BR / 1 BA
- Floors: 2
- Parking: Off-street (alley); on-street
- Rental Income: $475/mo (SFR; DX is vacant)
- Rental Potential: $2,370@ARV ($790 x 3)