Would you consider these two houses good buys? Since college, I’ve been able to save about 15k and I’m ready to buy! Or am I?
Theres a ton of houses out there in Cincinnati and I do not know whether to rent the same single family house for another year, or buy.
I have at least one individual that will rent for $450 and possibly two.
My take home is about $3500/mo at this point and it will only grow!
And yes…I’m ready for the maintenance and upkeep.
Please look at the two houses below and tell me if you think they would be a good buy. They are in the vicinity of one of the most popular shopping and dining meccas in the city (that is expanding ), the hip, young professional filled neighborhoods, and xavier u’s campus.
Major problem: No Driveway!!
Please let me know what you think!
I’m new to this whole gig, I don’t even feel like I have enough knoledge yet to say I’ve even gotten started with it, but my interest is growing every day. The point of my reply to your post is that I too live in Cincinnati and I’m looking for someone who might have some info to get me headed in the right direction in the Cincy market. I’m on the other side of town from you but I’m not averse to looking all over he city for opportunities. Drop me a line if you have any interest in sharing details. I’ll certainly be happy to reciprocae as I gain some knowledge.
to know if these are good deals for rentals you need to know what your holding cost will be and your rental income. We do not know what any of these variables are really. Also if your buying a rental you want to buy at no more than 60-70% ARV, so you need to know what the house is really worth. If the home is appraising for $100K, you want to buy it for 60-70K at max and in this still declining market really 65K max unless the cashflow is there to support higher price.
At 65K financed your est numbers are.
PI payment $432.45
tax (1000yr) 83.33
INs (500yr) 41.67
Add 50% for misc expenses and fees $280
Total holding cost $840.00
This unit would need to rent around $1000 -1100 a month to be considered a deal by most investors with these numbers.
Remember you need to figure out your mortgage, know your taxes and ins. add 10-15% for vacanies, 10-15% for misc repairs, 10% if you have a management company, know who is paying the utilities, administrative cost (credit reports, criminal background checks), legal fees (evictions, contract advice, tenant problems), loss of income due to eviction (it can take depending on state 2-4 month to evict, plus the 10-20days in to the month before you can file and then another 1-2months to get tenant (easily you can go 3-6 months without income and need to repair the unit from the evicted tenant), carpet cleaning cost between tenants (carpet last 3yrs avg), cost to change locks if tenant evicted, snow removal, yard maintance, etc… As you can see, many cost involved in a rental unit…
So are you ready to dive in???