Updated over 4 years ago on . Most recent reply
Dayton Area (Deal Analysis, 4-plex)
Hello,
I am reaching out to the bp community for some help analyzing a deal. This property is located in Dayton.
4 1bd/1ba rooms in a C class neighborhood
I want to get everyone's opinion on how good a deal this is. I would be responsible for water, trash and yard maintenance. Broker and I think the utilities for that would run ~$2000/yr for all units. The bldg is turnkey and had major rehabs done in the past few years. New furnaces, windows etc etc etc.
Address: 15 Ridge Avenue, Dayton OH
IMO, biggest risk is neighborhood. low quality schools, but since it's a 1 bed / 1ba I don't imagine my tenants will have children. Tenant screening will be paramount.
Here are the numbers I crunched
| Purchase | $165,000.00 (2% back toward closing) |
| Rent | Currently $1950.00 but market rates would have the building to $2100-$2200 somewhat easily |
| Mortgage | $555.69 |
| Taxes | $233.33 |
| Insurance | $100.0 |
| Vacancy (6%) | $126.00 |
| Repairs/capex (14%) | $250.00 |
| Prop Mg (10%) | $197.00 |
| Save for Tenant-Finding, typically 1st mo's rent ($800/ yearly) + Utilites ($2000/ yearly) | $2800.00 |
| Income w Mortgage | $404.24 |
| IRR (ROI) | 19.34% |
| Cap Rate | 6.98% |
| COC | 10.56% |
Most Popular Reply
I own over 85 doors in Dayton…
Your rent should be 600-625/door on this.
I will say banks are appraising these properties for about 38K a door so you have no equity in this deal and only 10% coc is not a deal I would do. Good luck!