Huge Return on Price Hill House

Nice 3 bedroom 2 bath house in Price Hill. It’s inexpensive, not much repair needed and cute to boot. But I know that some people are turned off by the thought of Price Hill (or the West side in general) so I’ve included some helpful “thinking points” below: You’re welcome.

Here are some bare facts:
Just because you own it does not mean you’d have to want to travel all the way over to the West side
There are these people called property managers who visit and rent the house so you don’t have to
Money has no memory. It spends just as well with a pedigree from this side of the Mill Creek as it does from yours
When you buy a stock, all you care about is the money the company makes, not where the office is

Let’s learn with math!

$725.00 Gross Rent (My estimate for a cute 3 bedroom 2 bath in good shape)
-72.50 Manager’s fee
-143.00 (20% of gross) for maintenance, turnover, replacement reserves
-32.00 Property Taxes (after appealing based on the new sales price)
-35.00 Insurance (Estimate based on what we pay)
=EQUALS=
$442.50 Net cashflow

So if you pay:
$11,900 Purchase Price
+10,000 Repairs/Upgrades
=EQUALS=
$21,900 invested

Therefore:
$5,310 Yearly Cashflow (442.50 x 12 months)
DIVIDED BY
$21,900 (Total Investment)
=EQUALS=
24% cash-on-cash return!!!!

Now let’s be honest. You will probably have to be inside this house at least 4 or 5 times in your life. One to decide if you want to buy it, another to hire a contractor, a third time to check up on the contractor, then yet again before you pay him, then maybe just one more time for fun. That’s probably not worth it, is it?

How have the hundred thousand dollar neighborhoods been treating you lately? Oh yeah, I went there.

Call me.