Hey everyone, a new development in the area where I invest, is offering a 5.99% interest rate (conventional loan) and 2% of purchase price in closing costs.

🫣This doesn’t answer your question directly, but the whole concept is very close to the old time “rooming house”.  

An important thing to note is to learn how to calculate estimated closing costs.

How much are closing costs?

I would say that I had the same thoughts about the industry before I started to look at it a little more closely.

Maintenance/cap ex, insurance, if a rental PM, bookkeeping, misc.The fact you have a loan means 1) leverage 2) equity pay down.In addition, there are tax benefits.So I will do some rough underwriting as an OO non-rental at 95% LTV (because FHA has some undesired consequences that make the 1.5% difference in LTV worth avoiding the FHA).equity paydown: 20% (using OP interest rate at 95% LTV and not counting closing costs). 

Cincinnati, Indianapolis, and Lexington are all with in a fairly close distance which could help with scale.  

And yep, in F'ville or very close by. 

The house sits near a freeway junction and a busy street, and while my previous rental was also close to the freeway, something about this home's elevation makes the noise unbearablyintrusive.

If you need a new job once you move, you will need an offer letter prior to closing on your new home (and you will need 6 months reserves in order to be able to use the offer letter as income).