Four bedroom house, City of Cleveland, USA

This large Four bedroom, two apartment multi family home is located on a nice street in Forest Hills close to the shores of Lake Erie and is only a five minute drive from Glenville High School, one of the best schools in Cleveland. The property is divided into two large apartments, you have a large two bedroom apartment downstairs and a large two bedroom apartment upstairs. The property has just been completely refurbished throughout to a great Section 8 standard. The work includes all new windows, and also a new hot water tank and furnace. The management company will place brand new tenants when the new owner closes on the property paying $600 – $650 each in rent per month. The rent is paid direct to the landlord via the US Government.

Forest Hills is seen as a very strong investment area in Cleveland, it is close to the Waterloo District, Euclid, Bratenahl and the I90 (highway) Lakeshore is appealing for bus lines and bike trails. The house is walking distance to Forest Hills Park, a historic urban park that was a portion of John D. Rockefeller’s estate. The 248-acre (1.00 km2) park has six baseball diamonds (four lit), six lit tennis courts and three walking trails that have retained the natural green space.

Investment Calculation

Purchase price: 74,900

Gross annual rental income: $15,600

Property running costs: $2,953
(Tax, insurance and management costs)

Net annual rental income: $12,647

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

Return on investment: 17%

Break even in 5.8 Years