All Forum Posts by: John Van Fosen

Peter Lohmann - The property is in the Bexley area, which is another reason I'm rather apprehensive. I'm not very familiar with the area. I actually went out a drove around the neighborhood today. All the surrounding blocks seem very nice and well maintained, there are two blocks full of duplexes that are obviously all rentals that aren't in such great condition. I'm okay with some risk in the lower grade neighborhoods, but like I said not familiar with Bexley, I've primarly been looking north of 70 because those are the areas I know best.

Thanks for the replies everyone.

I included the taxes and insurance as part of the mortgage payment (escrow them for simplicity).

The 3000 is for any miscellaneous expenses involved with the property, so I think it is pretty conservative.

Both units had new HVAC in 2009. The roof looks to be in decent shape from the curb, won't have more details on the property until I can get inside.

The seller is asking for curb offers only - is this typical? It seems kind of shady to me, but I've seen several other properties in the area that are curb only.

The realtor who told me about the property said we will be able to get inside and get out of the contract after an offer is accepted if the inspections aren't good. What happens if the inspections are reasonable, but the property is much lower quality than I anticipate? Is there still a way to get out?

I'm completely new to this, I've been looking at properties for a few months now. Think I found one I want to pursue. I'm looking in Columbus, Ohio.

Looking for the expert opinions here!

Here it is:

2 units, both 2br 1 bath

Both units rented at $625 a month, $1250 total.

Asking price: $64900

I would be putting 25% down, $16,225

Insurance $900/year.

I'm assuming $3,000/year in expenses - Is this overly conservative? I'd have to hire someone for lawn care and snow clearing. Other misc maintenance I can do myself.

I'm counting putting 10% net income into a reserve account ($1,500/year)

2012 property taxes: $1,370.82

Total cash outlay: $16,225 + $3,000 = $19,225

15 year mortgage at 4.5%

Estimate closing costs $3,000

Total Monthly Payment: $561.60 (including taxes & insurance)

Last Sale date: October, 1996: $61,900

County Value Details

Improvement Value Appraised $49,400 taxable $17,290

Land Value Appraised $12,300 taxable $4,310

Total Value Appraised $61700 taxable $21,600

My Thoughts

I am assuming a 94% occupancy rate of both units.

Rents are average for the area.

I come close to the 2% rule at 1.93%

This gives me a BTCF of $238.40/month for the property. Is this a good value for the current market?

I could do a 30 year mortgage for additional cash flow - what are people's thoughts on this? Does it make sense over the long term to stick with the 15 year to pay less interest?

There are several other very similar properties in the are being sold by the same owners. If this deal works out, I would consider purchasing more from them.

My main goal with this property is some decent cash flow. All net income would be saved and reinvested in the business I'm trying to start.

I am ignoring any tax/depreciation benefits.

Hey Corey,

I'm in the Dublin area too. I'm just getting started and looking for my first rental property. Let me know if you run across any duplexes in north Columbus that don't need extensive rehab.

Also, let me know if you want to team up on a flip or just need a hand, I'd be happy to help out. I'm also thinking about doing a few flips to build cash for rental down payments. I just started reading the book Brandon recommended!

Hi Gary,

Welcome aboard. I'm just trying to get started in Columbus as well. Send me a message if you ever want to meet up or just bounce something off someone.

Welcome aboard!

I'm also in Columbus, just trying to get started. I've been looking for a decent duplex to purchase and operate as a rental.

Like mentioned above, check out the podcasts, they are excellent. I'm slowly catching up on them.

Thanks for the welcomes everyone.

@Peter Lohmann I'll have to take you out to lunch sometime and pick your brain!

Hey Everyone,

My name is John and I am from Columbus, Ohio. I don't have much experience in real estate, I've purchased two homes in the past as personal residences and sold one of them using realtors.

By day I work as and Electrical Engineer. I'm looking to become a real estate investor by night, with a long term goal of being able to quit my job and be a full time landlord/property manager/home inspector.

This means to me that I need to procure at approximately 24 rental properties that net at least $400/month each to be able to really quit my job and focus on RE.

I'm currently hoping to find other members in Columbus that I can connect with, learn from, and hopefully help out in any way I can with their businesses so I have a chance to learn.

I'm also very curious in raising capital. I've done a fair amount of reading online and a book, found what I believe is a good rental property, but have been having trouble finding financing. I currently have about 10% cash I can put down on the property, but banks want at least 20-25% down. So I'm looking for advice in that arena.

Thanks for looking!