March 2022 Newsletter

4903-4905 Drayton Rd, Hilliard, OH 43026

Duplex | $419,900 | Mar 15, 2022

Newer constructed 3 bedroom duplex in Hilliard, OH (suburb of Columbus OH). 3 bedroom units are great family rentals!

Unit Mix: 3 bed 2.5 bath each
Total Sq Ft: 2809 total (768 sq ft per unit)
Lot Size: 10019 sq ft
Year Built: 2001
Property Taxes: $6295

What I like about this property

  • Newer construction - easy maintenance especially for out of state investments

  • Decent school district (according to GreatSchools ratings)

  • Ohio is a relatively landlord friendly state

Concerns about this property

  • Needs a new roof according to the listing - curious if the roof is currently having problems (leaks)

  • HVAC systems may be at its end of life as well if they are still the original systems so budget accordingly

Rentometer Report: Rent Analysis

Link to full Rentometer report

Note: Rentometer's average is high because it compared this unit to a lot of single family home rentals. For the financial analysis below, I am assuming market rent of $1600/month per unit and rely on modest future rent increases to cash flow more.

Financial Analysis

Highlights

  • Monthly Cashflow: $142.50

  • Cap Rate 5.22%

  • Cash on Cash Return 1.49%

Assumptions Made:

  • Purchase price $435k ($15k over asking since there are multiple offers)

  • Total monthly rent $3200. Each unit rents at $1600

  • Conventional loan with 25% down payment @ 5% interest rate (used www.aimloan.com for estimates)

  • Property Management 8%; Vacancy, CapEx, Repair/Maintenance 5% each

  • Note: landlord paid utilities are not included because I'm not sure what the norm is in this neighborhood

Link to Financial Analysis Spreadsheet

About Columbus Ohio

Suggested Information to Verify (Buyer to do due diligence)

  • Go visit the property and make sure you like the property and the neighborhood. Pictures and Google maps can be deceiving.

  • Gather information about current rents and lease terms. Current tenants are likely paying below market rent.

  • Verify utilities and any fees that the landlord is currently responsible for (e.g. lawn maintenance, garbage, water)

  • Call a few property managers in this area and find out more about the rental market

Sources