Dayton Area (Deal Analysis, 4-plex)

[Spencer St. Luke]

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%

[Tony Gorokhovsky]

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!