Analyzing a deal in Cincinnati, OH

[Aliz Raksi]

Hello, I'm looking to buy a multifamily property in Cincinnati, and wanted to run these numbers by the community to see if the numbers seem to be in the range of what you'd expect for the area. What do you think?

This is a 10-unit in Anderson townwship in Hamilton County, about 13 miles southeast of downtown Cincinnati.

List price: $350,000

Income:

8 units getting $550/mo, 2 units getting $575/mo.
Scheduled GOI: $66,000
Vacancy : 6%
GOI: $62,604

Expenses:

Taxes	$10,200
Insurance	$3,888
Water & Sewer	$5,200
Electricity	$4,200
Snow removal	$350
Gardener	$1,250
Garbage	$1,200
On-Site Mgr.	$0
Off-Site Mgr.	$5,568
Maint./Repairs	$1,747
Misc	$640
Total Expenses:	$34,242

NOI = $28,362

That makes this an 8.1% CAP, 5.26 GRM.

The property taxes seem high to me, it looks to be 2.9% of the current list price. How do property taxes get assessed in OH?

My concern is not enough opportunity for value-add (rents are already in upper range for the area), with financing I would get 12.1% cash-on-cash. My goal would be to find something close to a 10-cap, would it be reasonable to submit an offer respective of that?

Anyway I'd love to hear your thoughts about the area, and if you think this property is worth it! Thanks!