Good Morning BP!
I am in contract on a property in Bexley, Ohio that is less than a mile away from Capital University and has two, two bedroom houses. (a house and a separate carriage house)
My goal is to purchase, rehab, rent then refi...within 6 months. (PRRR) @brandonturner :)
In the interim, I am looking for a investor to lend me the funds.
Here are the numbers:
Purchase Price: 65k
Rehab Cost: 15k
Total Loan: 80k
I am able to put down 10%, so am looking for a loan around 72k.
The project would take a month to complete and would be ready for renters in Feb 2016.
The rental numbers are:
Main 2bdrm: 1000/mo
Carriage 2 bdrm: 850/mo
2 Car Gargage/Storage: 100/mo
I would appreciate any help/guidance here as the seller's are wanting to move quickly on this!
Core Ohio Realty Advisors
Good luck, Steve. Sounds like a great deal, solid cap rate and great neighborhood.
Sounds good, and IMO sounds like a great deal in Bexley as long as it's IN Bexley and not one of the areas that's sort of there but not really (With how close you are to the university, it sounds fine).
You also have the ability to do subleases and other 'unique' ways of getting more rent than what you stated, however it seems decent on the surface. I'm somewhat curious about garage rate - I'm in Circleville and I can get $100 out of a 2 car garage any day of the week, i'd think Bexley would be a little better.
You state income is looking to be $1950/mo but haven't defined taxes and insurance, those numbers would help look at a better NROI number. Also may be useful to know property age and condition of the mechanicals. We've been having great success with true rehabs to rentals as all the mechanicals get upgraded, and even in C-D neighborhoods our expenses remain to be low.
We usually budget 30%-35% for taxes/insurance, so that'd leave you with $1,267.50/mo in cashflow before mortgage, mortgage would be $475 at 20yr/5% , so that'd only take you down to ~$800/mo in solid cashflow before appreciation and principal curtailment. That's 100% ROI if you truly have only $8k down!