Western PA Marketplace.
HI all. I live in Mercer Co. PA. We have bought a home and are currently rehabbing for rental. I went to an open house today and found a really nice piece of property. Here are the numbers.
FMV - abt 59,000
Asking price 53,500 but I would offer 50,000.
Taxes 1346/y
Nice 3 bedroom 2 bath cape cod, with attached garage and decent size yard, two covered porches.
My question is: Is there someone on line who has done rentals in my area. I have messaged and e-mailed a few people who are members of this site from my area, but have not gotten any replies. I was hoping to rent this place for 600/m + utilities. (would have to get $600 to make it work). Anyway, just wanted some input. The property is in Farrell on Indiana Ave, by Metz Bakery (if you are from the area this may help)
Thanks!
Kim :-?
Kim,
this deal sounds too marginal. there needs to be a greater spread between FMV and Purchase Price. I, personally, never pay more than 70-75% of FMV for a move-in condition property/building. If it's a rehab, I pick them up for 50 cents on the dollar. There are PLENTY of potential deals in the Pittsburgh metro area to be had that are far more profitable than this.
I dont mean to burst a bubble. But my advice would be, "don't emontialize and keep searching." the deals are out there. check estates, forclosures etc.
hope this helps