All Forum Posts by: Dave Brinkman

The capex/maintenance/insurance were hard coded assuming $50 and $200 per month for maintenance and capex. And $1K per year for insurance. I did feel like my numbers may be a stretch but more conservative numbers puts the cash on cash return closer to 5-6% which likely is telling me this wasn't that great of a deal to being with.

As an update this property was the northeast side of campus / south clintonville pretty good rental demand and has received 3 other offers so I think it's fair to assume my offer $25K below list likely isn't winning. 

Thanks again for the feedback. 

All - I've been looking at several deals and curious if I'm being too conservative or it's more the market has heated up. The duplex I'm looking at is listed for $225K with the following monthly numbers:

Rent $1,020 * 2 = $2,040

P&I - $760

Taxes $317

Insurance - $83

Vacancy - $128 (holding back 75% of 1 month's rent)

Repairs - $50

Prop Mgmt - $0 I'd be the landlord.

Capex - $200

Other - Water - $42

I'd put 25% down (assuming $200K purchase price) or $50K, $10K repairs, $2.5K closing. So $62.5K cash investment. I'd calculate 8.9% or 7.3% cap rate, does this seem reasonable? I would classify this as a B neighborhood near a college campus. Thanks for any insight.  

Congrats!

Curious to get the communities thoughts on a duplex I am currently looking at with detailed numbers below. The majority of the investment properties I have been looking at in Columbus I have struggled to get the numbers to work with a goal of 8-12% cash on cash returns. I'm curious if this is one or both of the following reasons 1) real estate as a whole has heated up and valuations are becoming less attractive 2) I'm too conservative with my repair, capex, and other estimates.

Rent - $1,020 per side * 2 = $2,040 per month

P&I - assume 4.5% 30 year with 25% down - $760 per month

Taxes - $317 per month

Insurance - $83 per month

Vacancy ($1,530 per year or $128 per month)

Prop Mgmt - I would be the landlord to start.

Repairs - $50 per month

Capex - $200 per month

Other expenses - water $42 per month

Cash investment - $50K downpayment + $10K repairs + $2.5K closing = $62.5K cash investment

I come up with 8.9% cash on cash or 7.3% cap rate.

I would classify the area as B with prices of $90 - $110 per sq ft on similar properties in the area. What are your thoughts? Thanks in advance.
 

I've been looking in the Willow Creek part of town and specifically at MFH and curious if any investors have experience in this specific part of Columbus, OH. Rent appears to be in the $600-$800 per unit range. Thanks.

I would be looking to financing the properties with 20% down initially.

Curious to check my target rate of return with other investors in Columbus, OH on buy and hold properties. Assuming rental income of $700 - $850 per unit within multi-families and roughly $1,500 in 3 bedroom / 2 bath SFR - I am targeting 10-15% cash on cash returns with cap rates of 7-9% as well. Does this align with other investors' targets and thoughts on achieving this in current market conditions? Thanks in advance.

I have been nerding out and digging into the various calculators to understand the numbers. Within the BRRRR calculator I don't understand why the denominator the first year for the annualized total return of the model is based on the cash invested to refinance, whereas every other year is based on the cash needed to make the acquisition.

I would have thought it would have been the opposite, where you base your initial return on the cash needed to acquire the property and then once you refinance base your returns on cash invested after refinancing.

Thanks Peter, always buyer beware. And if it sounds too good to be true, its usually not true.

Awesome, appreciate the insight into the Columbus market. To find these sweet spot deals would the suggestions be to network with existing real estate agents to narrow the search down?