Same street. Same class of building. One sold on the open market ten months ago — the other is in front of you because you're inside The Deal Vault.
The Market
207 Clay Avenue
Commercial · sold October 2025 · all cash · open market
$499,000
What the street's last comparable sale actually closed at, per county records.
The Deal Vault · Members Only
605 Clay Avenue
Mixed-use · 3 income units · 100% occupied · turnkey
$379,000
Your price today as an invited member — before this ever reaches the open market.
$170,000Equity on day one
34%Below the street's last sale
$42,800And it pays you yearly
🧾 Tax Advantages — Why Real Estate Beats a Savings Account Twice4
The Deal Meter above compares pre-tax returns. Real estate wins a second time on the tax side — interest from a savings account, CD, or money market is taxed as ordinary income with nothing to offset it, while an income property generates paper losses that can shelter the cash it pays you.
Depreciation — the phantom deduction. The IRS lets you write off the building (not the land) every year even while it appreciates: 27.5 years on the residential portion, 39 on the commercial. On a building at this price that's roughly $7K–$10K a year of deductions against income you actually collected.
Cost segregation — pull those years forward. An engineering study reclassifies flooring, fixtures, appliances, cabinets, landscaping and parking into 5-, 7- and 15-year buckets instead of 27.5/39. On a fully renovated building like this one — where the components are new — a study typically frees up a large first-year deduction instead of dribbling it out over decades. Studies on small commercial run about $3K–$8K and are usually ordered right after closing.
Bonus depreciation. Federal rules let a chunk of those short-life components be deducted immediately in year one. The percentage has changed several times in recent years — your CPA will confirm what applies to your acquisition date.
Every operating dollar is deductible. Taxes, insurance, repairs, management, travel to the property, professional fees — all offset rental income before you're taxed.
Cash flow can arrive tax-sheltered. Combine depreciation with operating deductions and the taxable income on a cash-flowing building is often far below the cash it actually distributes — sometimes zero, sometimes a paper loss, while the money still hits your account.
1031 exchange on the way out. Sell and roll the proceeds into a like-kind property inside the IRS timelines and the capital-gains bill is deferred, not paid — investors compound into bigger assets without stopping to pay tax on each step.
Tenants retire the debt for you. On a financed purchase, principal paydown is wealth you build without writing a check — it isn't return the Deal Meter counts, and it isn't taxed as it accrues.
Step-up in basis. Held to the end, heirs generally inherit at current market value — the deferred gain can disappear entirely for the estate.
📍 Location — Jeannette, PA · Westmoreland County · Pittsburgh Metro5
The Deal Meter.The inflation line is the real hurdle: anything below it is losing purchasing power every year, even when the balance goes up. Illustrative typical annual rates for comparison only — savings, CD, and money-market are interest-bearing products shown for reference, not recommendations or offers; stock market = long-run S&P 500 average; typical rental = average U.S. cap rate. This deal's figures are the in-place cap rate and financed cash-on-cash* from the math below. Verify everything independently. Not investment advice.
Underwritten View. Applies a 5% vacancy allowance + 8% off-site management even though the building is 100% occupied and currently self-managed — the deal still clears double-digit returns with both handicaps on.
The Comparable Sale & “Equity on Day One”. Comparable sale per county records (via PropertyRadar). Unrenovated buildings on the same street have traded far lower — the $499K print reflects the renovated, tenanted premium this building shares. "Equity on day one" is the arithmetic difference between that comparable sale and this asking price; it is an illustration, not an appraisal, a guarantee of value, or a promise of resale price. One comparable sale is not a valuation — order your own appraisal and verify everything independently.
Tax Treatment.This is general education, not tax advice. Depreciation schedules, bonus percentages, passive-activity limits, who may use a loss, mixed-use allocations between the commercial and residential portions, and 1031 timelines all depend on your situation and current law — and depreciation is recaptured when you sell. Run every number with your own CPA or tax attorney before relying on it. Mr Buyer is not a licensed tax, legal, or accounting advisor.
Local Rules in Jeannette. Jeannette has no landlord-licensing regime in force the 2025 proposal (Ord. 25-06) was tabled and never adopted, as was its commercial counterpart (25-07). What applies today is the codified rental ordinance (Ord. 15-04, amended 21-04 / 23-04): an occupancy inspection at $100 per unit, required before a new tenant moves in and at least every ten years for buildings of one to three units. That reaches the two residential apartments only the ground-floor commercial office falls outside the "dwelling unit" definition and runs on a separate track. The city already accepts an owner or a local owner's representative for inspection access, so no professional property-management company is required. Note the tabled ordinance could be revived by Council at any time; if it were, its own text names an "adult individual" as the local designee, not a management firm. Confirm current requirements and fees with Jeannette Code Enforcement, (724) 527-4000 ext. 20, before closing. Location snapshot — approximate figures for orientation; verify independently (see disclaimers).
