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
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.
Monthly Cashflow: $142.50
Cap Rate 5.22%
Cash on Cash Return 1.49%
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
About Columbus Ohio
Columbus is the capital and most populous city in Ohio
Metropolitan population: 2,138,926 (2020 Wikipedia)
Home to Ohio State University
Rapid population growth
Intel is investing over $20 billion to build 2 new factories!
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
Aim Loan for estimates on interest rates and closing costs: www.aimloan.com