This large three 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 split into three apartments. There are two, two bedroom apartments on the first and second floor. Both apartments have long term tenants in place paying $450 in rent each per month. The average rent for this area is closer to $600 so should a tenant leave the rent could be increased. The attic apartment is ret ready and the management company will place a brand new tenant when the new owner closes on the property paying $350 – $400 in rent per month.
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.
Purchase price: 69,900
Gross annual rental income: $15,600
Property running costs: $2,962
(Tax, insurance and management costs)
Net annual rental income: $12,638
Investment calculation - Net Income divided by Purchase price = NET ROI.
Return on investment: 19%
Break even in 5.26 Years