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Kurtis Schreck
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Cincinnati Multifamily Property Analysis

Kurtis Schreck
Posted Mar 9 2020, 09:36

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

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