First Deal - Cleveland, OH - Does this deal make sense? Layout ?s

[Paul Shepherd]

Hi All,

My quest for my first rental property continues and I have an off-market opportunity in the Old Brooklyn neighborhood. I have a few questions that I'd like to throw out there to see if anyone has some good insight and if this is potentially a good deal or not.

Up/down double

$57,000 purchase price (hopefully less)

PITI = approx $500/mo with 25% down conventional loan

$14,250 down + closing costs

current rents total just over $1200/mo for both - leases in place

landlord currently pays about $200/mo for water/sewer/trash

I figure about 10% vacancy and 10% maintenance which leaves me with about $400 monthly cash flow

The two major concerns I have are that it needs a new roof (tear-off) and that it has a funky layout. I figure about $7500-$10,000 for the roof. Even if I have to do that right away, I think the numbers still work. I could be way off though. Again, I'm a novice.

Each unit is two-bed one bath, but the second bedroom is only accessible either through the first bedroom or through the hallway off of the stairs (indoors, but outside the unit). The bathroom is only accessible through the first bedroom too. I might be able to add a second doorway to the bathroom through either the living room or kitchen. I'm concerned that with this funky layout it won't rent.

If anyone has any advice, suggestions, comments - I'd greatly appreciate the help.

Thanks in advance!

[James Wise]

Originally posted by @Paul Shepherd:

Hi All,

My quest for my first rental property continues and I have an off-market opportunity in the Old Brooklyn neighborhood. I have a few questions that I'd like to throw out there to see if anyone has some good insight and if this is potentially a good deal or not.

Up/down double

$57,000 purchase price (hopefully less)

PITI = approx $500/mo with 25% down conventional loan

$14,250 down + closing costs

current rents total just over $1200/mo for both - leases in place

landlord currently pays about $200/mo for water/sewer/trash

I figure about 10% vacancy and 10% maintenance which leaves me with about $400 monthly cash flow

The two major concerns I have are that it needs a new roof (tear-off) and that it has a funky layout. I figure about $7500-$10,000 for the roof. Even if I have to do that right away, I think the numbers still work. I could be way off though. Again, I'm a novice.

Each unit is two-bed one bath, but the second bedroom is only accessible either through the first bedroom or through the hallway off of the stairs (indoors, but outside the unit). The bathroom is only accessible through the first bedroom too. I might be able to add a second doorway to the bathroom through either the living room or kitchen. I'm concerned that with this funky layout it won't rent.

If anyone has any advice, suggestions, comments - I'd greatly appreciate the help.

Thanks in advance!

If you're in the southern half of Old Brooklyn that is a screaming deal. If you're in say the 3000 block it's probably ehhh or maybe even a little overpriced.