First time out of state Rehab & Rental: SFH + Triplex

[Alex M.]

We just closed on a SFH and will be doing the same on a triplex this week! Both properties are in the Cedar point Ohio area and we're in California. While visiting the inlaws I was able to scout multiple properties and the plan was for us to buy something while I was in town and have my wife stay in town for 2 months to manage the rehabs. I have been wanting to invest in Ohio for about 2 years now and I am finally doing it!!!! Well, my wife is doing it since I will be busy continuing to work my traveling job :-). If I were doing it my way I would have done it in the BP organized fashion, but I'll let my partner figure it out the hard way!

So here we go:

SFH: This is a 2,400sqft property with 4B/2B and is generally in really good shape. I generally do not like large houses as rentals, but @ 16k with rents bringing $800 monthly I could not pass it up. I estimate repairs under 5k. The only damage to the place was ceiling and floors in the kitchen from a plumbing leak. We are now taking out the plumbing supply lines which are copper/galvanized plumbing and changing to PEX as a countermeasure for potential leaks down the road. I hope to have a PM and tenant in place by Feb 2015.

Triplex: Property has seperate utilities, new roof, new windows and vinyl siding. Two units are a complete gut job with complete electrical, plumbing supply, drywall install. I'm a 50/50 partner with my brother with purchase price at 15k and our rough estimate is another 15-23k to complete here. Gross total rents on the low side are $1600 monthly.