Hi - I am just starting out and I am interested in investing in small rental properties mostly in Northeast Ohio. I found a property that looks interesting and I'm hoping to get some input as to whether this is a good deal.
The property was inherited by the current owner. This owner has no records of past maintenance cost, vacancy, etc. The house was built in the 1960's and has not had a major renovation since then. It is in a decent area and has been occupied by college students and will probably continue to be. There a very few (if any) duplexes like this in the neighborhood. It is mostly single family homes with some larger apartment complexes.
2, 3-br, 1 bath, apartments
current rent: 2100/month (one renter has a lease until 4/15, the other is month to month)
taxes: 6100 annually (last assessed last year)
gas and electric paid by renters
water, lawncare, snow removal covered by landlord
we are not planning to hire a maintenance company.
Planning to put 20% down.
I've run a bunch of numbers already, but it's difficult without a lot of hard data.
Thanks in advance for any input you can give!
Based on your commentary (price, college, single family, apartments, etc) I'd imagine the property is in University Heights. I went to school at JCU, know the area well and rent only to students myself.
If that is the case, the property will likely have Point of Sale (POS) violations that will need to be corrected within 60 days of title transfer. Cover both interior and exterior. They can be as small as "install receptacle cover" to as big as "replace roof." You will need to ask they seller of he has ordered a POS inspection report and have him forward it to you.
I make all my student tenants pay water. They don't know any better. Do the same.
Let me know if you have questions.
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