First Purchase in Cincinnati

[Nick Vehr]

Just got a verbal acceptance on a property I put in an offer on in an area in Cincinnati for my first buy and hold. 30k for a 3 BR, 1.5BA ranch on slab with 1 car garage. The property is going to take a bit of work to repair and get it rented out. budgeting ~15-18k for Roof, paint, flooring, landscape cleanup, new outlets and switches, a window repair and a couple other odds and ends. 

I will be buying this using a heloc against my primary residence, then financing out of it when repairs are complete (either via traditional, or another heloc). I'm estimating the after value 75-85k and it will rent out at 850-950, most getting 900 in the area, 

After refinancing, repairs, taxes, insurance, 10% capex, 10% vacancies, 10% property management (figuring for later in life, i will manage for now), I am predicting 255-255 cashflow depending on rent rate. 

Let's hope i didn't miss anything, but there's enough meat on the bone to absorb any beginner mistakes (I hope, lol). Either way, just thought i would share. Thanks

[Nick Vehr]

Just wanted to give an update, if anyone here is still wondering..

We closed on wed, and hit the ground running. I got a dumpster delivered and had the carpet ripped up. My contractore picked up my flooring, counter top, sink etc. and got it all on site after tearing up carpet. The gas and electric were turned on, and we had a minor issue with the furnace pump, but got it fixed and the house heated up nicely. Next was the water, after being told it was turned on, we had no pressure and no water. So after getting them back there, turns out they didnt actually turn it on. Since the water had been off for around 1.5 years, we sprung all kinds of leaks, nothing terribly major, but we're working through the issues. 

Meanwhile, we started tearing off a roof to replace it, they are hoping to have it replaced by end of day tomorrow, so we aren't affected by weather. 

I have allure vinyl flooring going down all throughout the house once we get through the plumbing issues. 

Paint is coming in to paint EVERYTHING on monday, and I have a cleaning crew coming next friday. I hope to be able to show it on saturday and have it rented by Jan 1st. 

Been quite a ride, glad i just jumped in, because you cant account for everything, a lot of this is being able to think on your feet. Now, off to figure out what i need to do to get a lease with the things i want in it, and get it signed off by a lawyer.....