Cincinnati - Investing West Clermont Local Schools

5 Replies

Hi BP,

I'm looking to network with anyone investing in the West Clermont Local School District. The area looks interesting to me and I would love any insight from those of you who are already there.

My strategy is to purchase $55,000 homes after rehab and closing cost that rent for $750+ and cash flow $200 a month. I'm wondering which neighborhoods have the best tenant quality and lowest vacancy rates.

Amelia, Summerside, Hamlet, Summerside Estes, Withamsville, Batavia, etc.

I'm also looking for recommendations on team members: wholesalers, agents, contractors, handymen, property managers, etc.

This is the beginning of what hopefully becomes an enjoyable journey for me so if you know of any other local areas that compete with West Clermont Local School District and meet my cash flow strategy please let me know. I like the age of the homes, the school district is good, population looks sound, crime rate isn't bad, etc.

Thank you!

Tim Chasteen

Hey Tim.  I don't have any experience, but the east side does seem like a very good, stable area.  I know that @Thomas Sill  is a real estate agent that covers that area.  Good luck!

Thanks @Coleman Nelson  .    @Tim Chasteen  I live in West Clermont school district and have been in the area all my life. Successfully part of over 50 million in transactions so I'm experienced as well. I'm on the zoning commission here in Pierce Township. The 55k after rehab will be the trick. We can discuss and I can send you over what is available. I have contractors and handymen that I work with regularly. Give me a call or email and we can discuss.

Thanks @Coleman Nelson and @Thomas Sill . Thomas I realize my strategy will have to focus on motivated sellers and therefore the MLS might not be my best avenue. Do you happen to own any investment properties in the area? I will be certain to send you a PM when we reach that step.

@Tim Chasteen  There are numerous factors involved in buying this price point.  All cash?  Debt service will be key for hitting your numbers.  Also West Clermont currently has taxes on par with Anderson Township.

@Thomas Sill

Here are a couple scenarios I came up with. Taxes are certainly a concern and would have to be under $2000.

$55,000 Turnkey house
70% ARV rule = Comps need to be worth $78,500
"1.5%" rule = Needs to beat $825 a month rent
Average Rent = $850
50% rule = $425 left for mortgage
25% Down payment = $13,750
Rehab = $0
Closing Cost = $2500
Finance = $41250
Mortgage Payment = $197
Cash flow = $228 [$2736 Annual]
Cash-on-cash = 2736 (annual cashflow)/16250(down payment + closing cost) = 17%
Cap Rate = 2736/55,000 = 5%

$40,000 Fixer Upper
70% ARV rule = Comps need to be worth $78,500
"1.5%" rule = Needs to beat $825 a month rent
Average Rent = $850
50% rule = $425 left for mortgage
25% Down payment= $10,000
Max Rehab = $15,000
Closing Cost = $2500
Finance = $30000
Mortgage Payment = $143
Cash flow = $282 [$3384 Annual]
Cash-on-cash = 3384 (annual cashflow)/27500(down payment + closing cost) = 12%
Cap Rate = 3385/55,000 = 6%