1st Buy and Hold Rental Property in Columbus OH

[Ryan Bodenhorn]

I am fairly new to BP and this is my first forum post - I have been watching podcasts and reading a lot in the forums. I have been a CPA for the past 9 years and am new to real estate investing. I just got into contract on my first buy and hold rental property located in the Columbus, Ohio area, expected to close by the end of May. The purchase price is $54k, with the seller paying $2k of my closing costs and buying me a 1 year home warranty ($450). The reason i opted for the warranty is mostly due to the age of the AC unit - I expect it to need to be replaced within the next year and was hoping to not have to replace it immediately. ARV is approximately $70k.

The home is approximately 900 square feet, 3 bed, 1.5 bath, with a full unfinished basement.  Built in 1970 and located near both an elementary and middle school.  The property does not have a garage, but I will most likely add an 8' x 12' shed in the back yard for storage.  Based on similar rental properties in the area I should have no problem getting $895/month in rent.  I will be using a 30 fixed rate mortgage and putting 20% down.

After I close, I will be doing the following renovations: Refinish/stain the original hardwood floors which appear to be in pretty good shape; new interior trim; renovate full bath (tile floors, tile shower surround, new toilet, new vanity, towel racks, etc); paint interior; new interior light fixtures; minor landscaping; new interior doors; new closet shelving.  Expected renovation budget is approximately $6,000 - $6,500.  I will do some of the work myself and contract the rest out.  The renovations are expected to take about 30 days.

I will be self managing the property.  After factoring in vacancy loss (8%), cap-ex reserves (10%), and repair reserves (10%) I expect to cash flow about $200/month.

I will post images after I close.  Looking forward to your feedback.