Deal of the Week | Real Estate Analysis Step-by-Step | Duplex in Ohio

TL;DR

This video analyzes a duplex in Lakewood, Ohio and determines its potential as a real estate investment opportunity.

Transcript

welcome to something we haven't done in a long long time it's deal of the week for those of you who don't know we started this before we had a YouTube channel and it was very popular look at Andrew Andrews I was gonna say I'm OG here yeah you are everything I'm Primo we had a deal of the week because then we had your your um didn't your son go on u... Read More

Key Insights

• ❓ Lakewood, Ohio is a desirable suburb for young professionals.
• 👋 The duplex in question is in good condition and does not require extensive renovations.
• 😫 The hosts recommend setting the rent at $1,500 per unit based on the market.
• ☠️ Considering historical appreciation rates, the property's value could increase over time.
• 🧑‍🏭 It is important to factor in expenses such as property taxes, management fees, and maintenance costs when analyzing the investment.
• 😒 The hosts use a real estate calculator to determine the potential return on investment, with an IRR of 16.36% over 15 years.
• 🥐 Rehabilitating the property can increase its value and potential ROI.

Questions & Answers

Q: What is the rental potential for the Lakewood duplex?

The hosts recommend setting the rent at $1,500 per unit based on comparable rental prices in the area. However, the listed rent is $1,200 per unit, which they consider to be low.

Q: Is there potential for appreciation in the property's value?

The hosts mention that historically, Lakewood has experienced a 3.5% annual appreciation rate. This could contribute to the property's value increasing over time.

Q: What are the potential expenses associated with owning the property?

Expenses include property taxes, management fees (if hiring a property manager), maintenance and repair costs, insurance, advertising, landscaping, and snow plowing. The hosts recommend estimating these expenses based on market rates.

Q: Is it worth investing in this duplex?

The hosts perform a detailed analysis using their real estate calculator, taking into account various factors such as purchase price, rental income, expenses, and potential appreciation. The calculator shows a potential 16.36% internal rate of return (IRR) over a 15-year period.

Summary & Key Takeaways

• The video discusses a duplex in Lakewood, Ohio, a suburb of Cleveland, known for its appeal to young professionals.

• The property is in good condition and does not require extensive renovations before renting it out.

• The recommended rent for each unit is $1,200, but the hosts suggest that $1,500 is a more reasonable price based on the local market.