Startup Capital Required In Dayton

[Jamall Lynch]

Good afternoon BP family, I'm a newbie that is going to invest in the Dayton, Ohio market. I'll be investing out of state and I'm looking to acquire a turnkey duplex at a cap price of $100K. I've already made some calculated evaluations in terms of the expected operating expenses, the mortgage, closing costs, and a 20% down payment. My hypothesis is that I should be putting aside around $33K to cover the down payment, closing costs and about 6 months of reserves for PITI. Is there anyone in this market that can give me idea of how much I should have tucked away to make a deal like this happen? I'd greatly appreciate it!

[Tyler Everidge]

Hey Jamall, I'm an investor and agent here in the Dayton and Cincinnati, OH markets. If you don't plan on occupying the property you will likely have to put down 25%. Typically closing costs are around 1.5-3% of the purchase price depending on buy down points, tax proration, etc. Although you can get those wrapped into the loan by making an offer with seller closing credit. 6 months of reserves is a very comfortable cushion to have. Feel free to reach out if you would like to discuss more about the market or a specific property. 

[Jamall Lynch]

Thanks Tyler, I really appreciate the response. This is some great information.

[Carlos Scarpero]

Varies a lot with credit score and experience. Feel free to PM me for a more detailed answer