Twelve bedroom house, City of Cleveland, USA

This huge multi-family six apartment home is located on a nice street in East Cleveland 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 six large two bedroom apartments, three of the apartments have Section 8 tenants in place paying $650 in rent each month. Two of the apartments have private tenants in place also paying $650 in rent. The tenants are long term and the rents could possibly be increased in the near future to $750 – $800 especially with Section 8. The management company will place a new tenant in the vacant apartment when the new owner closes on the property paying $750 – $800 in rent.

East Cleveland is seen as a very strong investment area in Cleveland, this area is surrounded by some great neighbourhoods like University Heights, Glenville, South Collinwood Richmond Heights and Euclid. The house is just 1.8 miles 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: 220,900

Gross annual rental income: $48,600

Property running costs: $10,460
(Tax, insurance and management costs)

Net annual rental income: $38,140

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

Return on investment: 18%

Break even in 5.5 Years