[Calc Review] Help me analyze this deal

[Albert L.]

Howdy folks, me again.. 

What I like: 

-Long term tenants 

-Up and coming area, close to Metrohealth

-Low property taxes (probably too low that I should be somewhat concerned...)

-Cash flow and CoC meet my criteria. Description says 1190 but I think I can increase it after seeing comps in the area and adding value back by doing some minor retouching

What I don't like: 

-Iffy-ish neighborhood. Trulia crime scores wasn't promising, though it was right on the edge of moderate

-Close to cemetery, not sure if that affects desirability 

-Not much info on mechanics and roof/foundation.. 

-Not much info on how utilities are split. Comps show that owners pay water, sewage and garbage which will cut into the cash flow 

-low ARV, comps are around similar price ranges. pictures looked like the property was rehabbed 2014

overall, seems worth it to gather more info on 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[Matt Rutter]

Long-term tenants are great, however, I wouldn't weigh this into your criteria. There are plenty of owners who have poor rental practices that you'll be inheriting and that's the last thing you want.

Taxes will definitely increase. Cuyahoga Country just did another round of increases which were pretty substantial for most. One of our properties had a proposed increase of 3-4x.

Water & Sewer shouldn't be a huge concern, but you need to go a layer deeper. Is there a washer & dryer? Shared or in-unit?  If they have access to a washer / dryer then you can expect that water & sewer bill to reach close to $80-100 per unit each month since they will be using it more often.  Without it, it's probably more around <$50 per unit, per month.

Two of our properties are close to cemeteries and we haven't had any issue renting them.

General location is good, but because it is an up and coming area properties can change street to street so you just want to make sure you look into that a little bit more as well when it comes to comps.

Overall, it's probably worth a deeper look, but I would hedge on some increases that might affect future cash flow.