Four bedroom house, City of Cleveland, USA

This large multi-family home is located in Mount Pleasant and is only six minutes from the famous Shaker Square. Shaker Square is one of the biggest attractions in Cleveland and is full of restaurants, bars, boutiques and even has a cinema. 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 a good long term tenant in place in the upper apartment paying $500 in rent each month. The lower apartment has just been refurbished to a Section 8 standard and the management company will place brand new tenants when the new owner closes on the property paying $600 – $650 in rent each month. The new tenant can be either private or Section 8 housing, the new owner will decide.

Mount Pleasant is seen as a very strong investment area in Cleveland, less than 1.3 miles away you have the famous Shaker Square which is one of the biggest attractions in Cleveland. Shaker Square is full of restaurants, bars, boutiques and even has a cinema. This property is also only 6.4 miles from Downtown and 4.1 miles from the University Circle.

Investment Calculation

Purchase price: 59,900

Gross annual rental income: $13,800

Property running costs: $3,084
(Tax, insurance and management costs)

Net annual rental income: $10,716

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

Return on investment: 18%

Break even in 5.5 Years