All Forum Posts by: Max James

@John Chapman @JD Martin

Here are the #'s I have for the first property:

Here are the inputs for Property #1:

Purchase Price: $171,000

Interest Rate: 5.125%

Down Payment: 15%

Total Amount Brought to Closing (down payment and closing costs): $22,875

Gross Rental Income When Bought: $1,050

Gross Rental Income 1 Year Later: $2,450

Monthly Water Bill I Pay: $83

Property Management Fee: Assuming 10%, but I manage this property for now, so for now it is 0%. Need to include the 10% for long term growth.

Monthly Taxes: $338

Monthly Insurance: $90

To - Date CMA Price: $210,000

What I'm calculating for my results are as follows:

Cash flow per year excluding property management: $10,541

Cash on cash return: 27%

Cap rate: 10%

2% rule: 1.43%

Cash flow per year including a future property manager: $7,601

Cash flow per year looking only at PITI: $14,762

Hey John, thanks for the response. The experience I have is as owner occupied, one 85% LTV and one at 96.5% LTV (with FHA owner occupied). The cash on cash returns as owner occupied is also extremely nice.

Thanks for the response Russell, I agree, if you keep in mind the rent raises and refinances, this becomes even more appealing.  

I need to put together a legitimate business plan which I think will help me stay on track.  I just came across a good article on BP for this, https://www.biggerpockets.com/real-estate-investin...

Welcome max! 

@Carly Young in your opinion and with your knowledge base, what are your reasons for suggesting Pleasant Ridge? What streets/tighter area of PR do you think are/will be the best locations for the growing area? 

Thanks !!!

Ah man thanks so much guys!! You made my weekend ahead much better!

thanks @Darrin Carey that would great.

I wonder how much money I would save if I tried doing it all myself. If all said and done I can get materials and labor costs from someone go $5/sq ft, I wonder if it would it be expected I could save half that cost if I did it myself.

Thanks guys, appreciate it, I will be sending you a PM.

Buddy's flooring says it'll cost at minimum $10/square foot for a vinyl or ceramic tile job. I can probably do the job myself, but I want to start slowly phasing out of the DIY portion of my REI journey since I'm on property #2. But, at lowest $10/sq ft, I need ~400 sq ft for the whole building, and $4,000 to do 4 tiny bathrooms and kitchens seems really pricey, especially for a rental.

Agreed with the higher cash flow of you can find a deal in the nice areas. I guarantee you there's ATLEAST one person out there with a MF who's older, ready to get out of the game, and has a neglected property that needs help.  But they haven't gone to a realtor (for whatever reason) to help them sell the place. Then you scoop up the property without any other buyers lined up for a great price, put "x" amount of money into the place, rent it out, and you have yourself a good deal.

A good deal that comes through the MLS is going to be tough to find in these affluent areas I think.

Other areas for young professionals with the potential for higher rent in the short term and long term future in Cincinnati could be some of east walnut hills, which is already seeing progress. Other than Pleasant Ridge, Im not sure of other tighter markets in Cinci that has the potential to boom over the next couple years. This is a question I have also been asking lots of different realtors and Cinci natives. 

What do you think? Where's the next Oakley/Hyde Park?

@Brett Read nice! I think Pleadsnt Ridge has some good potential for a few different reasons. 

Check out this article from February of this year:

http://www.urbancincy.com/2015/02/pleasant-ridge-n...

Once people realize how pricey Oakley and Hyde park is, they'll try to find the next best spot. The problem with Norwood is there isn't an "urban scene or feel" there. Pleasant Ridge has a ton of new bars, breweries, restaurants and other businesses opening up in the area. I am currently trying to focus on the nicer young professional areas of town outside of Oakley, Hyde park and mt lookout.