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Updated about 9 years ago,
Questions on acquiring turn key rental in the Dayton, OH area
I became suddenly interested in acquiring a turn-key rental property in the Dayton, OH area after coming across a seemingly attractive offer (at least to me). I should disclose that I have not been looking into any rentals until now since I was rather focused on finding deals to wholesale or flip locally in Southern California. Also I am not familiar at all with Dayton, OH or its suburbs. But I figured that I could use the cash flow generated from the rental to continue financing my marketing to alleviate the burden on our finances.
The property is a 1600+ sq.ft., 2 unit, 2bd/1ba each, located in the Trotwood area of zip code 45417. It has been recently renovated by the owner. I looked at several pictures and they all looked pretty good. Tenants are already in place in both units and the combined gross rent income is $1300/mo. Taxes, insurance, PM and part of the utilities total approx. $340/mo. So, monthly cash flow would be about $960. I'm thinking I should side aside about $300 for maintenance & reserves, and vacancy and collection loss. So that puts it at $660 net monthly cash flow after everything that I can think of is deducted.
The property is being offered to me for $44000. I've asked and gotten answers to several questions that I had regarding the property, tenants and the area. My main question is, given the monthly gross rent income and the purchase price, is this a good deal? I know the answer may depend on a lot of factors such as vacancy rate, safety of the neighborhood, tenant background and credit, etc, etc, but assuming that all of that is satisfactory, is this a deal that I should take?
Thanks all for the help!