10% Cash on Cash Return in This Dayton OH Duplex
By the numbers:
Pure Cashflow - about $150/unit
CoC return - 10%
Purchase Cap Rate - 8.5%
Why I like this property?
1) The unit layouts, this is a rare layout with one unit having 3 beds and 2 baths. Most duplex units in this area will only have 3 beds 1 bath, that extra bath translates into higher rents and longer term tenants. The second unit is a 2 bed 1 bath, which is a versatile unit. Meaning this can serve as an additional long term rental unit or can be converted to a short or medium term unit.
2) Resale Potential - Duplexes are sold for the highest price to a house hacker or someone that will live in the building. They can afford to pay the highest price and often get the cheapest rates at any given time. The one unit having 3 beds and 2 baths as a primary residence and a a 2 bed income producing unit will be a large selling point for a future house hack buyer.
3) Location - This building is just over the river from the Dayton Children's hospital and would be close enough to consider medium term rentals driven by the hospital. Additionally, these historic areas in Dayton are seeing some great revitalization, and the areas are quite beautiful with many large old trees and homes.