24. Owner of blighted and abandoned properties - some insights and thoughts

Now the fellow who owns the deteriorated and abandoned building discussed at the City of Sharon Council meeting this on 05-16-2018, has on the Tax Parcel webpage ownership of 152 properties in Sharon, Pa. 

When queried the owner was unsure of the number of the properties he owned. In conversation with the owner it was determined that 2/3's roughly were generating rents. So, that would be 100 properties generating rental income. It is likely more as many of the properties have more than one apartment / living unit. 

As the rental company this fellow owns has currently listed 11 rentals averaging $517.00 a month that will be the monthly dollar amount used for these observations. As such 100 X $517 represents a gross rent of $51,700 a month or a $620,400 annual gross income. During the course of the meeting he shared that he pays his maintenance crew employees $10.00 an hour. Let's guess that his costs for maintenance of his rent generating properties and the administrative overhead might total $150,000. 

In an article published in the local newspaper 05-12-2018 it was reported he shared with the writer at the paper that he had quarterly waste disposal costs of $8800 or $35,200 annually. He indicated his annual tax bill was $175,000. His sewer fee was $5,500 a month or $66,000 a year. The total estimate for his annual costs is $276,200. 

$150,000 + $276,200 = estimated total annual costs $426,200.

$620,400 estimated gross rental income - estimated  total annual costs $276,200 = $194,200 estimated total net income.

This owner is concerned about the code inspection fee currently before City Council!