All Forum Posts by: Jordan Tannenbaum

Thanks everyone for the quick responses and welcoming words. 

@Jason D. I'm looking in the Avondale area. Looks to be a decent amount of college (undergrad and med school students) in the area between Xavier and UC.

@Phillip Weickert Very good point about the income tax at the state and local levels. I will need to account for that.

@Todd Dexheimer Appreciate the input. I'd rather keep a conservative analysis so I will bump up those expected expenses.

@Joseph Cornwell Awesome info about the local expectations around utilities. I was going in assuming that all utilities would be covered by the tenants for homes like these, but I may need to cover some of those, particularly the water/trash. And agreed on the neighborhood. I plan to visit these homes and get all relevant info from the current owner before making any offers. As for local management, do you have any names that you would refer? It sounds like you've got a good pulse on the area.

Thanks for the response, @Jason D., however, I did use a tax rate of 1.5%. I bumped my expected landlord insurance costs up to $1000 on the year, which only slightly changed my bottom line. Do these sound like reasonable numbers to use in the analysis? Could I be missing something else?

Hey there Team BP! After months of following along the BP threads and webinars, it's time to make things happen. Can't thank the community enough for helping me to this point. 

Been analyzing some multi-family homes in Cincinnati and running the numbers over and over and think I am overlooking some major components--the numbers seem too good to be true. Here is how one example is breaking down:

3 units @ $600/month = $1800 rental income

7% Vacancy Loss = ($126)

10% Property Management Fees = ($180)

Monthly Operating Expenses (including 10% Capex) = (~$600)

Purchase Price = $100,000

20% Down Payment = $20,000

Acquisition Costs = $5,000

Interest Rate = 4.5%

Monthly Mortgage Payment (Principal + Interest) = $405

Here's where the numbers have me thinking I'm off somewhere:

Total Monthly Cash Flow = $670

Cash on Cash Return = 32.18%

I'd like to think I stumbled upon a unicorn, but I'm not so naive to think I got this lucky so early on. I would greatly appreciate any thoughts and pointers on doing analyses like this so I don't miss any major costs. This isn't the only property I've found with these kinds of numbers, so I'm assuming I'm consistently missing a major factor.

Thanks in advance!

- Jordan