Acquisition of a diversified portfolio of 13 residential properties in various stages of renovation and sale. The portfolio offers immediate cash flow from properties in escrow and listed for sale, combined with value-add opportunities through strategic renovations. Conservative underwriting targets 19.69% IRR, building in a buffer below our projected 30.3% return to ensure we under-promise and over-deliver.
| # | Property Address | Neighborhood | Status | Cash at Closing | Reno Budget | ARV | Net Profit | ROI |
|---|---|---|---|---|---|---|---|---|
| 1 | 133 Leilia Street | Brookline | Rehab | $71,448 | $127,000 | $400,000 | $25,700 | 13.0% |
| 2 | 725 Hulton Rd | Verona | Rehab | $76,797 | $110,000 | $775,000 | $32,031 | 17.1% |
| 3 | 820 4th Street | North Side | Rehab | $40,362 | $65,000 | $300,000 | $17,998 | 17.1% |
| 4 | 100 Lemoyne Ave | Mount Oliver | Rehab | $74,700 | $110,000 | $400,000 | $30,209 | 16.4% |
| 5 | 1727 Morningside Ave | Stanton Heights | Listed | $62,635 | $16,000 | $290,000 | $3,688 | 4.7% |
| 6 | 779 Bower Hill Rd | Mt. Lebanon | Escrow | $27,596 | $83,000 | $185,000 | $11,194 | 10.1% |
| 7 | 2020 Frankella Ave | Carrick | Listed | $28,720 | $50,000 | $180,000 | $7,408 | 9.4% |
| 8 | 223 Lafayette Ave | West End | Listed | $65,484 | $115,000 | $375,000 | $25,417 | 14.1% |
| 9 | 445 Parkview Dr | Baldwin | Listed | $77,740 | $110,000 | $450,000 | $16,844 | 9.0% |
| 10 | 814 Fruithurst Dr | Swissvale | Rehab | $52,486 | $85,000 | $450,000 | $15,646 | 11.4% |
| 11 | 389 Ambard Ave | Castle Shannon | Rehab | $49,192 | $85,000 | $300,000 | $8,129 | 6.1% |
| 12 | 2001 Ohio Ave | Brighton Heights | Rehab | $42,870 | $60,000 | $210,000 | $8,187 | 8.0% |
| 13 | 7957 Aber Road | Verona | Rehab | $31,209 | $75,000 | $210,000 | $9,699 | 9.1% |
| Portfolio Total | $701,239 | $1,091,000 | $4,525,000 | $212,152 | 30.3% | |||
Note: Cash at closing reflects required investment after financing. ARV (After Repair Value) based on comparative market analysis. Net profit calculations include all closing costs, selling costs, and holding costs.
Conservative Underwriting: Target IRR of 19.69% with net profit of $138,074 includes a buffer below our projected 30.3% actual return ($212,152 profit). This approach ensures we under-promise and over-deliver to our investors.
| Median Home Price | $225,000 |
| YoY Price Appreciation | ↑ 7.2% |
| Average Days on Market | 42 days |
| Months of Inventory | 2.8 months |
| Sale-to-List Ratio | 98.2% |
| Population Growth | ↑ 2.1% |
| Neighborhood | Avg Price | YoY Change |
|---|---|---|
| Mt. Lebanon | $385,000 | +9.5% |
| Brookline | $195,000 | +8.2% |
| Swissvale | $142,000 | +12.3% |
| Verona | $168,000 | +7.8% |
| Brighton Heights | $155,000 | +6.9% |
Pittsburgh ranks #3 in the nation for real estate investment ROI, with strong rental demand from tech workers and students. The city's transformation from steel to tech has created sustainable growth fundamentals.
Strong seller's market with <2.5 months inventory. Portfolio priced 18% below comparables provides cushion.
Mitigation: Staggered exits, conservative pricing, market analysis
Renovation delays or cost overruns could impact timeline and returns.
Mitigation: Fixed-price contracts, established contractor relationships, 20% renovation contingency
38% of portfolio ready for immediate sale provides early capital recovery.
Mitigation: 5 properties market-ready, average DOM <30 days
Rising rates could impact buyer demand and financing availability.
Mitigation: 32% cash buyer market, properties priced for quick sale
| Scenario | Sales Price Adjustment | Timeline | Net Profit | IRR | Multiple |
|---|---|---|---|---|---|
| Best Case | +10% | 10 months | $261,567 | 37.3% | 1.37x |
| Projected (Actual Model) | 0% | 12 months | $212,152 | 30.3% | 1.30x |
| Target (Conservative) | -3% buffer | 12 months | $138,074 | 19.69% | 1.20x |
| Conservative | -10% | 14 months | $56,699 | 8.1% | 1.08x |
Key Insight: Portfolio maintains positive returns even with 10% price reduction. Break-even occurs at approximately 15% price reduction, providing substantial downside protection.
Conservative Underwriting: Our target 19.69% IRR represents a conservative approach with built-in buffer below the projected 30.3% actual return model, ensuring we under-promise and over-deliver.