Hi Everyone,
As a first time out-of-state investor, I plan to do out-of-state investing in Columbus, Ohio. I found that normal duplexes or SFHs in C area do have cash flow, but the numbers didn't seem worth investing. For example, a duplex (in 1920s) ~ 240k, $2600 total rents with 20k rehab and 5% vacancy, 8% management and 12% maintenance, 1.37% property tax, $960 insurance, 25% downpayment and 7.25% interest rate. The overall cash on cash return is only 5.73% (with principal is 7.84%). It's way below the average return of qqq (12.5%). I want to know in this case if it is still worth investing in Columbus Ohio or if there is anything wrong in my calculation/expectation. I found that the return will be more than 12.5% when the interest rate <5%. Perhaps I should wait till the interests go down? Please share your thoughts and experience and what are the right investments to look at Columbus Ohio. Thanks a lot!
