Here's a deal I have come across. I'm still learning as much as I can about the financial side of these deals. And could use as much critique and feedback as possible. I currently have 90k (and saving like crazy) that I can use for down payments, so looking to buy 2 potentially 3 properties by the end of the year. I live in Seattle. I have been working as a General Contractor for the past 6 years on large commercial projects so I understand the dynamics of contracting and working with other individuals and establishing a team. Looking to buy OOS due to the market here. Came across Columbus Ohio as an overall growth rate of 1.15% and it is in my price range for starting. How do other people select networks when you have a wide net from which to choose.
RENT: 1100 per door for rental. Checked via rentometer & cl this is my biggest unknown as I don't have a lot of knowledge of the market and the class of neighborhood. Rents look surprisingly strong for the price of homes in the area. How can I better investigate this? I was planning on calling property managers tomorrow morning to investigate.
CAP EXP: 3%
MGMT FEES: 5%
INCOME GROWTH/: 2%
Nearly nabbed the 2% rule.
*This link comes directly from our calculators, based on information input by the member who posted.
Good afternoon Chris,
I am a native of Columbus Ohio. I have invested in properties for over 10 years . I have knowledge of the Columbus market and help a lot investors buy and sell in the Buckeye State!
Always happy to help.
@Chris Sweeney congratulation on taking the first step and starting to anyalize deals! Having looked over your numbers a few things jump out at me:
1. Assuming rent of over $1k in South Linden is VERY aggressive. I would expect more in the $750 range but as you mention consult with a property manager to review. Additionally you can look at hotpads to see what inventory is out there and at what price.
2. Property management rate of 5% is low especially if you only have a few units. With lease up fees and other costs would budget 10%. Given you are also in South Linden you are in class C so with require more management involvement.
3. For non-owner occupied expect to have to put down 25%, and for a 30 year would be looking more around 5% than 3%, but consult with a mortgage broker to give you more details around that.
I own a duplex around that area and as much as I would love to see someone buy this north of $100k I don’t see it. There are a lot of other deals out there in that area if that is where you want to be focusing.
Hope this helps,
As a current resident of Columbus, I completely agree with @Art Mimnaugh . The east side of I-71 is different than the west side. As a new investor I am spending a lot of time around the city looking for deals and networking. Feel free to reach out in the future and maybe I can drive by something for you or possibly refer someone for your team.