Dayton Ohio

7 Replies

Good afternoon BP,

I have been running numbers on properties in Vandalia Ohio and would like your opinions on a property. List $199,000 (731 Helke Rd is the address)

4 Unit Gross rent: $2320

Taxes: $431

Insurance: $47

Mortgage at List: $881

When I ran the numbers it was break even and would like to see what you guys come up with, thanks!

I would think it is quite a bit overpriced for what you are getting. Just using the 50% rule you are looking at $1,160 to pay your mortgage and turn a profit. That leaves you around $280 after mortgage, or $70 per door.

I will not even discuss a property unless it can turn $100 a door in this market.

If you are looking for slightly nicer properties like that one, you can come south some to Huber Heights. You can find a 4 unit that will bring in roughly $2,000/month with a sell price in the $120K-$140K range. This is will get you much better cash flow.

This is based off of what my strategy is and how I want to invest. What is your strategy? Either way I think the property is vastly overpriced for the rent you are getting.

Rich

@Richard Leu , currently I'm forced into an owner occupant situation. I want my first property to be a buy and hold, however; I have always been very mechanically inclined so in the future I will do some fix and flips to provide me down payments for commercial multi-units.

@Engelo Rumora , agreed! My problem right now is finding a possible owner occupant property between Dayton and Columbus.

@Samuel Larger For the Dayton Area, @Richard Leu is right, though he did not say it directly. In Dayton, Ohio and the surrounding suburbs, you can do much better. @Engelo Rumora called it directly. There is no reason to buy break-even properties in Dayton or most areas of Ohio.

You may have to do a little work to get there, but even as an owner occupant, you should be able to find a good 4 unit that will allow you to live rent free, and still make a profit on top of that.

Medium dayton rei networkDarrin Carey, Dayton Real Estate Investing Network | [email protected] | (937) 458‑3303 | http://www.DaytonCapitalPartners.com

Originally posted by @Samuel Larger :
@Richard Leu , currently I'm forced into an owner occupant situation. I want my first property to be a buy and hold, however; I have always been very mechanically inclined so in the future I will do some fix and flips to provide me down payments for commercial multi-units.

@Engelo Rumora , agreed! My problem right now is finding a possible owner occupant property between Dayton and Columbus.

Thanks Samuel,

I am actually in the process of doing the same thing.

I am looking for a duplex in Toledo in a decent area to live in one side and rent out the other side.

You can still find a cash cow even if you will be living in the property. I actuall spoke to an owner today of a duplex in Toledo. The bottom unit is fire damaged and the top is tenanted for $550 per month. Solid B class area with asking price of $10,000. The bottom unit needs quite a bit of work but comparable sale are around the $50,000 - $60,000 range.

I can easily come in under that with the rehab.

Hopefully the other contract falls through with the other buyer.

Be patient and keep networking, the right deal will come along.

It always does ;)

Thanks and have a great day.

Medium list n sell logo designEngelo Rumora, List'n Sell Realty | [email protected] | 419 740 6999 | https://agentscomefirst.com/ | Podcast Guest on Show #89

@Samuel Larger From a 2% rule perspective you are only at 1.165%. It seems a bit tight/thin from a cash flow view. As starting out, I would prefer 1.5% at least. If you have the bandwidth and capacity to add value by increase rent and equity, then it is possible. In general, I don't pick up any property with negative or marginal cash flow.

Thanks for everyones input! I'm no longer looking at this property but you guys restored my confidence in running numbers, now I just need to find worth while properties haha