Cincinnati Multifamily Property Analysis
Cincinnati Area Investors -
Just moved to the Cincinnati area in January - Been driving for dollars, networking at REI events, and watching the MLS to get my first deal in this area, but thought I'd get active on BiggerPockets as well.
A majority of multifamily properties I've looked at have been a decent or good deal. It's concerning. Am I looking at vacancy or costs wrong? Would appreciate any input!
Assumptions in general (case by case, but this is typical)
- Rent $ amounts collected from Rentometer - amount based on interior finishes, potential amenities
- Vacancy at 5-8%, repairs 5%, 10% cap ex, 10% property management - are these usually higher in C class areas?
- Utilities seem to be split in one way or another from landlord to tenant (somtimes water, sometimes heat, just depends)
- $50 for lawn service per month, $20 for garbage
- low future assumptions (1% growth for all, 6% at sale)
- Lastly, 4.5% interest on a 20% down payment
- $3000 in closing costs, anywhere from 5000-20000 in initial repairs/upgrades (varies property to property)
Am I crazy? Let me know.
Thank Ya!
Kurtis