Help me analyze this deal

[Kingsley Ogwuegbu]

Hey Guys!

First time here and I am looking to purchase a single family house in Cleveland OH.

Asking price is $45,000

Area = 1742sq

Looking to put 20% down and amortize for 10-15 @ 5% or so

The house is currently renting for $1,100 a month and the tenants are looking to stay long term.

Rental Income = $1,100\month

Property taxes for this house was $1,168 last year.

Water and Sewer averages about $80-$100 a month combined.

Property insurance is about $800-$900 a year.

Let me know what you guys think.

Thanks!!

[James Wise]

Originally posted by @Kingsley Ogwuegbu:

Hey Guys!

First time here and I am looking to purchase a single family house in Cleveland OH.

Asking price is $45,000

Area = 1742sq

Looking to put 20% down and amortize for 10-15 @ 5% or so

The house is currently renting for $1,100 a month and the tenants are looking to stay long term.

Rental Income = $1,100\month

Property taxes for this house was $1,168 last year.

Water and Sewer averages about $80-$100 a month combined.

Property insurance is about $800-$900 a year.

Let me know what you guys think.

Thanks!!

The numbers themselves are amazing. If you are looking at these numbers in a vacuum you won't find better than $1,100/mo for a $45k investment. What is important is the location. Is that $1,100 going to be consistent. Is $45k truly an accurate value. What level of risk is involved in this investment. Have you worked in higher risk areas before as I assume the risk level here to be moderate to high.