East Price Hill TurnKey Investment

Cincinnati, Ohio
Cincinnati Real Estate Forum
5yFollow

East Price Hill TurnKey Investment

Noel Negusse
Austin, TX · Member since 2021 · 5 posts · 4 votes

Hi BP! I'm an OoS investor from Austin, Texas working with a turn key provider (Freaky Fast Investments, any community opinions on them?) in the Cincinnati metro.

As I don't have intimate knowledge of the Cincinnati market as a whole, I wanted to get opinions and perspectives on a property in the East Price Hill area. I'm a little hesitant as opinions of the area seem to be mixed for REI and not sure if the below numbers are low or high for the neighborhood. To give more detail, the property will be fully rehabbed and located in Fairbanks Ave near Warsaw Ave. I've been told it's a B class neighborhood, but wanted to get a second opinion!

Purchase Price: $140,000
Total Cash Needed: $31,031

GROSS RENT: $1,250
- Vacancy: $104 (8.34% of Rent)
Total Operating Income: $1,146

Property Taxes: $135
Insurance: $63
Property Management: $115 (10%)
Maintenance: $50 (4%)
Capital Expenditures: $25 (2%)
Total Operating Expenses: $388 (33.8% of Income)

Net Operating Income: $758
Loan Payments: $512

Year Built: 1885
Size: 1,536 sqft

Monthly Cash Flow: $246
Cash on Cash: 9.5%

All advice, opinions and warnings welcome! :) 

2Reply
43 views

Most Popular Reply

Jeremy Komer
Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
5y

@Noel Negusse

East price hill is not a very good neighborhood.

It's got sections that are ok and changing but most of it is not good and is probably a D class neighborhood.

Western half of Cincinnati is very rough for the most part.

If it were me I would want much better than 9.5% CoCROI for price hill and even then I would probably want to wait and see the neighborhood change more before I jumped in.

I suggest using area vibes to get a good sense of the crime rates in various neighborhoods.

3Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Jeremy Komer
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
    5y

    @Noel Negusse

    East price hill is not a very good neighborhood.

    It's got sections that are ok and changing but most of it is not good and is probably a D class neighborhood.

    Western half of Cincinnati is very rough for the most part.

    If it were me I would want much better than 9.5% CoCROI for price hill and even then I would probably want to wait and see the neighborhood change more before I jumped in.

    I suggest using area vibes to get a good sense of the crime rates in various neighborhoods.

    3Reply
  • Noel Negusse
    OP
    Austin, TX · Member since 2021 · 5 posts · 4 votes
    5y

    @Jeremy Komer

    Thank you, that's very helpful information Jeremy!

    You mentioned parts are getting better, would this primarily be in the Incline District? For reference, the zip is 45205, and I'm assuming this area doesn't fall under that.

    0Reply
  • Jeremy Komer
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
    5y

    @Noel Negusse

    The incline district is definitely the epicenter of the improvement but even that is street to street at the moment, some are immaculate l, some are pretty run down. The further west you go in the incline district the worse it gets generally.

    The only good neighborhood on the west side is Northside (ironic I know) so it wouldn't surprise me to see the incline district really pickup.

    The incline district has some cool upscale wineries and bars starting to open up so it has real signs of life but it's early.

    1Reply
  • Jordan FioreBusiness Member
    Real Estate Agent · Cincinnati, OH · Member since 2020 · 169 posts · 145 votes
    5y

    Hi Noel,

    I would have to agree with Jeremy that Cash on cash should be a bit higher in this area. I do like the East price hill area for long term investing though. (Close to downtown, Incline District is growing, property values are fairly low) -Jordan

    [email protected]513-646-1038
    Home to Investments Group - eXp Realty565 Reviews
    WebsiteView Page
    0Reply
  • Noel Negusse
    OP
    Austin, TX · Member since 2021 · 5 posts · 4 votes
    5y

    @Jordan Fiore

    Thanks for the reply Jordan!

    Given the new rehab and based on your experiences, what do you feel is a fair CoC given the area?

    0Reply
  • Jordan FioreBusiness Member
    Real Estate Agent · Cincinnati, OH · Member since 2020 · 169 posts · 145 votes
    5y

    A lot of other variables need to be taken into account but strictly looking at numbers. I would say the 1% rule should easily apply in this area. $140k property should have minimum $1500 rent per month with those same expenses. Just ballparking the numbers here. Obviously have wiggle room there based on the state of the property.

    [email protected]513-646-1038
    Home to Investments Group - eXp Realty565 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free