Hi Everyone I'd love your input. I'm excited and nervous. After looking and looking for something to invest in as a rental that cashflows in Los Angeles at no avail. I decided to take the jump into out of state investing. I chose Cincinnati. My criteria was 2 to 4 units c+ or better. Close to turnkey (as my 1st. Investment out of state I didn't want a big remodel project). Here are the numbers and details:
Duplex both 2bedroom units purchased @$200k 25% down 4.5% 30yr fixed
Total initial Investment $59k includes dwn payment loan fees and M&R needed
Total monthly expenses including piti- maintenance- vac ex- cap ex- $1090
Rents are $900 +$950= $1850. Annual cash flow = $9120. SO MY ROI IS 15.5%
Please feel free to tell me if I'm missing or overlooking anything thank you. Im new to Bigger Pockets but I've been listening and reading. Just quick intro on me I own Two rentals in LA I bought back in 2002 (1 triplex 1 sfh) they've been great to me, but I've been just sitting on the sidelines since. Thanks✊
@Sidro Felix welcome to BP bud. It sounds like you already did the deal so it is a little late to ask questions about it. First off the price sounds pretty high for a C+ property. You should use the member locator and find some folks on BP who are not connected to your seller and have them look at the property and neighborhood and give you their input. You should have gotten an independent home inspection to give you an idea of it's condition and possible repairs needed. At that price it should be pretty well updated. You insurance costs, estimated maintenance costs, repairs. What kind of shingles does it have and how old etc. The rental prices do not look too good compared to the cost of buying. I find it hard to believe you cannot find better than a 1% deal in Ohio. Again I do not know anything about your property, but it looks very high priced to me. Either way good luck bud.
While I have nothing against turnkey properties, my advice to you is to attend your local REI clubs and talk with someone who has successfully done out of state investing. I would learn the ropes a little more than ultimately decide the best approach.Best of luck!
Ah nice.... what other areas are you looking to invest... I may be able to help if you're looking to add more multi-s to your portfolio.... think I can get you some higher returns as well.
PM if you'd like to discuss further.
Make sure that you are not looking at this through Californicated eyes.
$200K / $1,850 rent = $100k / $925 rent = $50k / $462 rent
You can't be paying $50k to get $462 rent in Cincinnati.
$50k in Cincinnati needs to be bringing $800 per month in rent.
And Kennedy Heights cannot be considered B class.
Deer Park, some parts of Pleasant Ridge maybe B class.
Kennedy Heights, Silverton, Madisonville? No way B class.