First Rental, Duplex in Lakewood, OH
Hi everyone!
I'm looking to purchase my first rental property via live in house hacking and renting out the other unit of a two family in Lakewood, OH. Down unit is 2/1, and the upper is 3/1. I haven't seen the property yet, but I wanted to speak somewhat knowledgeably before looking at it with a realtor.
I'm running numbers to get a good feel for things like cash on cash return based on 3.5% down with recent taxes and best guess expenses which show approximately 54% of income.
I'm using a 10% management fee to pay myself, $400 a year in repairs and maintenance, and $100 a month for replacement reserves. Based on pictures it looks well cared for and in above average condition, and is located on the western part of the city. (1264 Webb for those familiar)
So here are some questions: Does anyone use cap rates for smaller properties like duplexes in this area, or mainly metrics like cash on cash return? (Mine are showing 6.8% cap and 12% coc)
Also, I've heard from several sources that the market is quite hot in Lakewood, and was curious to hear input from other members investing in this area. Does that only apply only to SF, or multifamily also?
Any input would be greatly appreciated!
Vic Delgado