Cleveland Heights 6 Unit

[Markian Sich]

Hi all, I am very new to all of this. Any help analyzing this property I have offered to me would be a huge help:

A 6 Unit in on Noble Rd in Cleveland Heights area of Cleveland. (I heard it was a very diverse area so that is why I'm providing the street it is located on)

237K Purchase Price.

Rent is a total of $3430 a month. $41,160 a year.

Annual Taxs $6470 a year

Water Sewer: $4800 a year (Does this seem high? I am not sure why this was given to me, I guess they currently have the owner pay for water and sewer... definitely going to change that)

Gas + electric: 780 year (also going to potentially charge the tenants for this)

On top of that obviously property management, insurance, income tax.

100% rented and apparently in good condition. My dad is going to go up and check it out for himself. But barring anything crazy, seems pretty good to me. What do you all think?

Thank you!

Markian

[Account Closed]

Stay away from Noble road unless you are personally running the property as a hands-on owner. I don't want to discourage you from pursuing a deal but there are many properties on Noble that have been huge failures for out of town owners. Also at 40/door, without even looking at any financials, I can say that's way too high. Successful owners on Noble have been acquiring around 20-23/unit. Also account for an increase in taxes to full purchase price if you are getting a mortgage. The attorney for CH school board tracks every mortgage of multifamily properties and will pick yours up sooner than later. Thus, taxes will be raised accordingly upon his research.