East Price Hill TurnKey Investment

[Noel Negusse]

Hi BP! I'm an OoS investor from Austin, Texas working with a turn key provider (Freaky Fast Investments, any community opinions on them?) in the Cincinnati metro.

As I don't have intimate knowledge of the Cincinnati market as a whole, I wanted to get opinions and perspectives on a property in the East Price Hill area. I'm a little hesitant as opinions of the area seem to be mixed for REI and not sure if the below numbers are low or high for the neighborhood. To give more detail, the property will be fully rehabbed and located in Fairbanks Ave near Warsaw Ave. I've been told it's a B class neighborhood, but wanted to get a second opinion!

Purchase Price: $140,000
Total Cash Needed: $31,031

GROSS RENT: $1,250
- Vacancy: $104 (8.34% of Rent)
Total Operating Income: $1,146

Property Taxes: $135
Insurance: $63
Property Management: $115 (10%)
Maintenance: $50 (4%)
Capital Expenditures: $25 (2%)
Total Operating Expenses: $388 (33.8% of Income)

Net Operating Income: $758
Loan Payments: $512

Year Built: 1885
Size: 1,536 sqft

Monthly Cash Flow: $246
Cash on Cash: 9.5%

All advice, opinions and warnings welcome! :) 

[Jeremy Komer]

@Noel Negusse

East price hill is not a very good neighborhood.

It's got sections that are ok and changing but most of it is not good and is probably a D class neighborhood.

Western half of Cincinnati is very rough for the most part.

If it were me I would want much better than 9.5% CoCROI for price hill and even then I would probably want to wait and see the neighborhood change more before I jumped in.

I suggest using area vibes to get a good sense of the crime rates in various neighborhoods.