Company Description
This cash flowing 5 Unit Multifamily property is located in Pittsburgh, Pennsylvania just a few blocks away from Spring Hill Brewing and Threadbare Cider House.
Each unit has 1 bedroom and 1 bathroom and the building comes with an off-street parking lot.
4 out of 5 apartments are currently occupied. The vacant apartment is currently listed on the market and a full rent credit is provided by the seller for 1.5 months until a new lease begins.
Refer to the 'Documents' tab above to view the following information plus more:
Rent rolls
Appraisal
Inspection report
Inspection report repairs
Purchase Agreement
HouseCanary report
Rent roll
Lease Agreement
Sales price history
Our A.I. does not have enough data for this property to make an accurate forecast of the future appreciation. Because of this, we are not projecting that this property will rapidly appreciate. The projected appreciation of 7.3% is determined by taking the average of HouseCanary's 3 year appreciation projection for the zip code.
The LLC documents will be uploaded to the 'Documents' tab once the property is fully funded and closed.
Updates:
Update 8/18/2022: The Property Management fees have been reduced to 5.7% due to a new National Partnership Agreement between Lofty and the Property Manager, HomeRiver Group.
Update 10/16/2022: The Property Manager identified safety issues with the property that will need to be addressed to protect the tenants, assets, and owners. We are currently waiting on the PM to send us an estimate for all of the repairs. The LLC received a repair credit of $8,500 at closing. Interior Inspection. The common area, hallways, and basement/utility room are being used as storage for personal items. Emergency signs/lights are not installed and will be required for code ordinance. Steps connecting to upper units are damaged. If this is a means for egress, the steps will need to be repaired immediately for fire safety and liability. Unit 5 has a leak in the ceiling of the living room that will need to be repaired properly. The PM indicated that previous repairs are apparent, but the leak is still present and the section is sagging in the middle of the living room. Additionally, the floor bows into the center of the structure and the PM recommends having an engineer assess the structural integrity of this unit. Exterior Inspection: The building exterior needs a heavy cleaning and maintenance to address material rotting, failing paint/siding, and windows. Some are safety issues and most are asset preservation issues. The landscaping and grounds will need to be cleaned up. There are stress fractures and cracks on the foundation stones that will need to be repaired to prevent water and pest intrusion. The rotted wood around doors, windows, and siding will need to be replaced. The roof over Unit 5 will need repairs and may be related to the ceiling damage inside the unit and the floor bowing inwards. Mortar joints on the chimneys will need to be repointed. The retaining wall is leaning on the backside of the property and may be causing the tree and building to shift. Work completed/in progress: Termite Treatment: The PM is recommending termite treatment as a preventative measure due to the evidence of former termite activity on the inspection report. The cost for the initial treatment is $1,498 and includes a 1 year warranty. The PM also recommends to renew the warranty at $200 per year as most chemical treatments only last so long before a new colony takes over the vacated one. Landscape Maintenance: The weeds are too high and will need to be trimmed for city compliance. The cost for initial trim and mow is $500 and the bi-weekly maintenance is $350. Common Area Cleaning: There is a lot of trash and debris in the common area. This common area needs to be cleared for fire safety. The cost for the initial cleaning is $350 and the monthly cleaning is $250. Structural Engineer Report: A local structural engineer will complete a site visit and report to assess structural integrity of the property. The visit is scheduled for 10/14. The cost for the site visit and report is $795. Basement Waterproofing and Post Repairs: Install new interior French drain system and install steel posts and countersunk beams for structural support. The cost for the repairs is $14,600. The Property Manager was made aware of a high utility bill while transferring utilities for new ownership. The bill yielded 32,000 gallons of water, costing $1,798.26. A plumber came to the property to identify and address the leaks. They replaced the toilet handle and flapper for Unit 2. Unit 1 and Unit 3 had additional repairs and Unit 4 & 5 did not have any plumbing issues. For Unit 1, the work requires removing the Pex for the tub spot and repiping with copper. For Unit 3, the work requires resetting the toilet, replacing the fill valve, and replacing two handle tub/shower valves with central brass valves and clear lay blockage.
