OH Deal Analysis

[Michael H.]

Hello BP members,

I am interested in this property located in Akron, OH 44314. Here is my deal analysis. I was wondering if you can take a look at it and let me know what you think.

Purchase Price - $40,000

Cash Down payment - $10,000

Annual Rent - $8,400 (Monthly rent of $700)

Interest Rate - 5%

Annual Principal and Interest - $2,028

Annual Operating Expenses

• RE Taxes - $1,200 (Can possibly appeal to decrease taxes)
• Insurance - $600
• Maintenance - $840
• Management Co - $840
• Vacancy - $840

Total Annual Operating Expense - $4,320

This is a 3 bedroom, 1 bath SFH. Utilities will be paid by the tenants. The property has new roof, carpets, maintenance on HVAC. From the look of the pictures, it looks like it is in good condition but I will do an inspection prior.

Annual Cash Flow - $2,052

Monthly Cash Flow - $171

Cash on Cash Return - 20.5%

[James Wise]

Not a great deal for the area. Everyone who said it was is looking at it with "out of state eyes." You do not have to spend 40k to get $700 in rent in the Cleveland/Akron area. Many better deals to be had than this one.