Pittsburgh Play

Just closed on a 12-unit apartment building in Pittsburgh's trendy Strip District. Paid $1.2M, which works out to a 7.5% cap rate based on in-place rents. However, after digging into the financials, I believe there's significant room for rent growth. Current rents are averaging $900/mnth, but pro-forma rnets suggest we can push that to $1,200/month with some strategic renovations. Our value-add plan includes updating the unit interiors with new flooring, appliances, and fixtures, as well as enhancing the building's curb appeal with fresh paint and landscaping. We're also exploring the possibility of adding a few amenities, such as a fitness center or community room, to make the property more compettitive in the market. With a total renovation budget of $200,000, we're anticipating a significant boost in property value. The location is ideal, with plenty of restaurants, bars, and entertainment options within walking distance. I'm skeptical of the broker's claims that the property is 'turnkey,' but I do think we can achieve some decent returns with the right management and marketing. Anyone else have experience with simliar properties in the Pittsburgh area? What were some of the challenges you faced, and how did you overcome them? I'm particularly interested in hearing about any successful value-add strategies that have been implemented in the area.