Cleveland, OH Advice on Areas And Deal Analysis

[Jonathan K.]

Hello BP,

Just briefly I'm looking for a real estate agent or investor familiar with the Cleveland, Ohio area. I've obviously already used James Wise guide (https://www.biggerpockets.com/...) but there were some discrepancies in the comments regarding one area, in particular, I was looking into.

Also with the information, I'm trying to get an accurate deal analysis going on this property here: https://www.biggerpockets.com/calculators/shared/1052029/585303ea-ad0e-44bd-8f8c-4ae2c4855875

If anyone could let me know how that analysis looks and if they know more about the Cleveland market, it would be greatly appreciated.

**PS if anyone has any insight to investing in Dayton or Cleveland and which they prefer and why that would also be very helpful

Thanks!

[John Koster]

@Jonathan K. 

I have had a few duplexes in the surrounding area over the last few years.  From my experience repairs and Cap Ex have generally been15-20% of rent.  Water & Sewer which include waste collection have been $180-230.  Insurance $70.  Electricity will be on the tenants except during vacancies and will run no more than $20.  Also I would factor in 10% for property management.  8% usually is only attainable with larger multi-family buildings.  If you have that arrangement, great.   Also, PMs will charge a month's rent for filling vacancies, which raises that 10% figure upwards.  

Also 5% for vacancies was fine last year, or even last month, but I would figure a higher percentage. I have heard some people recommending 25% or even 30-40%.  I was not a landlord at the beginning  the last downturn, so I am not talking from experience on this, but vacancies will definitely be higher in the next two years.  

Good luck!