Five bedroom house, City of Cleveland, USA

This large multi-family home is located in Mount Pleasant and is only one street to Shaker
Heights. The house is also just 1.4 miles from the famous Shaker Heights High School.
Shaker Heights is one of the most demanded and prestigious areas in Cleveland.
The property consists of two, two bedroom apartments and a one bedroom attic apartment.
There is already a tenant in place in one two bedroom apartment paying $750 in rent each
month. The attic apartment also has a tenant in place paying $350 in rent, the market rent for
this apartment is closer to $550 so should the tenant leave the rent could be increased. The
remming vacant apartment needs some minor cosmetic repairs needed to bring it up to a
good rental ready condition. The works are included in the price and will begin after the new
owner closes on the property. The management company will then place brand new tenants,
the apartment should achieve $750 – $800 in rent each month.

Mount Pleasant is seen as a very strong investment area in Cleveland, just 2 miles away you
Shaker Square which is one of the biggest attractions in Cleveland. The house is also just 1
street from the famous Shaker Heights, one of the most desirable areas in Cleveland. The
house is just 1.4 miles from Shaker Heights High School.

Investment Calculation

Purchase price: $89,900

Gross annual rental income: $22,800

Property running costs: $4,580
(Tax, insurance and management costs)

Net annual rental income: $18,220

Investment calculation - Net Income divided by Purchase price = NET ROI.

Return on investment: 21%