Columbus Ohio Rental Property $50k

[Tiffany Burns]

This house is in a great part of the neighborhood surrounded by well kept owner occupant houses and across the street from a park. All of the upgrades and location make this a great buy at this price.

Assumed Lending for Buyer

Assumed a Mortgage putting down 20% @ 5% interest rate amortized over 27.5 years

Financing & Some Assumed Returns

Off Market Sales Price: $50,000

Total Initial Equity: $10,000

Monthly Rent: $765 (rentometer.com, room for $800+)

Monthly Cash Flow: $207.84

Cap Rate: 10.39%

NOI: $5,196.64

Cash on Cash Return: 23.40%

Gross Rent Multiplier: 5.4

Income-Expense Ratio (2% rule): 1.52%

Debt Coverage Ratio: 1.92

Assumed Expenses

Monthly Expenses: $563.16

7% Management Fees

5% Vacancy

3% Capital Expenditures

5% Repairs & Maintenance

Future Assumptions

3.5% Annual Income Growth

4.2% Annual PV Growth (Columbus average over last 80+ years)

4.1% Annual Expenses Growth (Columbus average increase since CPI was started in early 1980's)

3% Sales Expense (assumed this would be sold investor-to-investor or otherwise I would use 7% in this for a retail sale)

Email [email protected] for more info. and photos.