All Forum Posts by: Larry Smith

@Christian Efseaff

So I used the bigger pockets rental calculator

https://www.biggerpockets.com/calculators/shared/6...

This is the link. I changed 15% for repairs and put it to 5% then moved the extra 10% to the cap Ex.

The roof looks pretty good. I would say it will last me  another 5-8 years. I calculated that if I put away 10%(46.5) per month for 5 years that will  be 2790. I also just found out that the renters may be moving out so am going to raise the rent. The rent for that area is on average 600-725. Like i said in an earlier post section 8 in Ohio does very well for investors. I realize that my quality will go down with the renters also but I also know that if I screen correctly that I can find some good section 8 tenants. That is speculation though and I don't know everything so what do you guys think about that. If I section 8 it I will make more money but my quality my go down. It is already in a low income neighborhood so I feel that many people will be on section 8 regardless so I will be able to capitalize on that.

Please, If it looks like i ran the number wrong let me know!

Thanks guys

@Engelo Rumora

Oh, bummer haha.

Good luck man! Keep going towards your goals

@Engelo Rumora 

Thank you very much. I'm still learning and realized that doen't stop. I am curious to know will you be attending the Real estate meeting that Darrin Carey holds in Dayton this coming Monday?! I hear you have attended before and plan on traveling to meet seasoned investors in the Ohio area! 

*Update*

I currently am not sure if the contract got accepted. The listing agent called and asked my realtor a bunch of question about if I actually have the funds(which I do) but we don't know if I secured it or not.  Don't know why she would go through all the trouble to ask if my offer wasn't accepted so I'm just waiting it out. I also am planning on renting the extra bedroom out as well to bring in extra money. Trying to stay away from family and close friends but I will see.

Another question I have is that I am much younger than the tenants living below and feel like there will be a respect issue there. How would you all collect the rent if you are also living there? Have them send it to a PO box or is that an unnecessary expense?

Thank you everyone who took time out if their day to reply. realizing how much i can learn by just posting my questions. I am planning to move forward on the deal! Good luck to everyone and their investing future!!

jim, Toledo is a really weird market for rentals and the returns are usually very high here compared to a lot of areas. One reason is because many people go through section 8 which allows investors to charge higher rents. but yes the bottom is rented at 465/per month

Jared, the other properties in that area that are fixed up are going for a about 25k. But they all have 1 less bed room. I don't mind the area and I know that when I move out I wont have much trouble getting it rented.

so cap rate isn't just for commercial properties then correct?

the average rent for the area is 725. The bottom floor is a 3/2 and the top is a 2/1. the bottom rents is already rented out for 465 per month. the homes in that area are only worth 30k when fixed up though so that is the reason that it is so cheap. Don't really have a lot of equity in the property but i ran the numbers and thought it would be good to house hack and i would still make a little extra. Thank you guys for the replies! Also how would i do the cap rate exactly with those numbers??

Hello BP, 

I am currently looking to house hack a duplex here in Toledo Ohio.

I am able to get a Fha Loan on the property because I will be living in it. The bank also has free 3% funding for houses in lower income areas( Not a war Zone). 

The purchase price is 24k. 

The bottom is already rented out for 465/ month

I will be living on the top floor. 

After I ran the numbers I the rent was at 1.76% of the purchase price.

The house in in good shape. The only repairs it needs are flooring in the kitchen and then paneling in the bathroom.

I will be making 38$ in cash flow a month. 

My question is, would it be worth it to go in for the deal even though it is only 1.76% of the purchase price?

 Thanks BP