Examples:44109 (median home price went from roughly 50k to 125k in 8 years)https://www.zillow.com/home-values/77009/cleveland-oh-44109/ 44102 (median home price went from roughly 30k to 120k in 8 years)https://www.zillow.com/home-values/77002/cleveland-oh-44102/ 44106 (median home price went from roughly 100k to 200k in 8 years)https://www.zillow.com/home-values/77006/cleveland-oh-44106/ It has the highest rents on average in all of Ohio for major cities and the median income is not even in the top 3.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Also I have not worked out the financing yet. if I just use my cash then the Cash on Cash drops to 8 or 9% and that would be below my Cash on Cash target.Generally speaking and of course just numbers I picked out of the air for reference when running numbers in my head, I am looking for Cash on Cash greater than 15%, high probability of long term occupancy, and no expected major Capex for 2.5 years after purchase and purchase time repairs which I would add into the cash on cash evaluation before pulling the trigger.So there are some more details to be worked out in my head but being it is my first one and only learning what I could from youtube videos I thought I would get some feedback.With all that said, in my head it seems like it could be a good start.Thanks again Jaycee and Gavin for your feedback.

This can be helpful if you expect your property to become profitable soon.Save It for Later: If you don’t use it this year, you can save the depreciation for future years when you have more rental income.

The builders that were building rentals are most assuredly going to switch over to rebuilding the higher profit multi-million dollar homes.

I am aware of companies like Pad Split, but would prefer to have a more traditional company overseeing the day to day since I am out of state the majority of the year.

Keep reserves. 80% of buyers experience a major unexpected repair in the 1st year of ownership.4) Talking with an agent who can help increase your knowledge of the process and owning a home. 

An inspection is crucial to catch any major issues upfront.

So three years and 30k later and countless hours of work, we sold for 195k for a total profit of 100k. 

There are some concerns around taxes and insurance to be mindful of, but the job market in major Texas cities is unreal.