Numbers from a 14 unit apartment in Cincinnati for 2019

[Michael Hooper]

Hey guys. Thought some of you might be interested in seeing some actual numbers from a deal. So I'm posting my owners statement from my property management company from 2019 and some relevant numbers associated with the deal. A few notes:

1. The property is 14 units (3 - 3x1, 11- 2x1) in Cincinnati OH. 
2. I pay all water and sewer (labeled in owner statement as "Water and Sewer"
3. I pay for heat (labeled as "Electric" even though it is gas)
4. Tenants pay for eletric in their own unit
5. Avg Rent is around 600/month/unit (newly turned units go for $650)
6. 54k in Net Income (Revenue minus expenses in Owner Statement)
7. 14k per year for taxes (Not reflected in owner statement)
8. 3k per year for insurance. (Not reflected in owner statement)
9. I paid 420k for the property putting about 100k down and 10k in closing costs (Total invested of 110k). 
10. The mortgage is 1800/month. About 15.5k of the mortgage this year went interest. About 7k went to principal.

So on an investment of 110k I have a total net worth gain (Income plus paying down mortgage) of 29k. About a 26% ROI (please check my math). I hope this can be helpful to someone taking the plunge. Though I realize I bought this property in 2018. The property is probably worth closer to 650k now. I haven't ran the numbers on if it would still work if I paid 650k. This is the biggest property I have ever owned, and it was scary, but I'm glad I took the plunge. Feel free to chat me if you have any questions about the deal or if you spot any inaccuracies.

[Michael Hooper]

@Mike Solak The roof is new and the parking lot was recently patched to fill all the pot holes, so its got a little more life in it. The windows are old, but still functional, not exactly sure when they'll need to be replaced though. The boiler might have to be replaced in the next few years, but its still hard to say, it could last longer. I don't know much about accounting, but we Opex as much as we can cause I'd like to get that tax break. Real estate is a side job right now for me, and this is held in a pass through entity, so the profit is taxed at my tax rate, which is around 29%.