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Achieving 20% rental yield - is it real?

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I had been wanting to publish this article for a while but I would want to wait until I have enough own experience involving in different types of real estate before recommending to my investors / clients.

I had been investing in Youngstown OH market since October, and I gave myself 6 to 8 months to watch the market and to see how realistic to achieve 20% rental yield which is very rare for investors to hear from other markets.

Since then, I had personally invested in 14 properties in that market and had helped clients to purchase at least 20 more - and we had all achieved somewhere between 16% to 32% gross rental yield.

How can this be possible, and what are the risks?

I had been following and visiting Youngstown regularly and I am amazed by the transformation in this city - the economy is more stabilized now importantly, crime rate had dropped dramatically and rental demand has been rising strongly.

Like any other city - there are always good and bad areas - and I learned these myself - and now focus on average to upper end markets / sub-markets in the Youngstown OH market.

Our strategy is to stay away High Crime areas (like any investor), we don't mind older homes as long as they are in good areas, and focus on Foreclosure and HUD homes in average to better areas.

Our areas include Westside, Southside, Struthers, Poland, Boardman, Canfield, Austintown and Warren.

My own portfolio

The best way is to demonstrate my portfolio - and you can have a good comparison - this portfolio is available to review if you want to e-mail me to and I will send you detailed P&L analysis.

1. 2004 Pointview Dr Youngstown: Built in 1929, bought it for $14,900, renovated for $2,000 - now rented out at $400/month. (Southside)

2. 3030 Green Acre Drive - Built in 1960s, bought it for $25,000, updated: $3,000m rented out at $650 a month. (Westside)

3. 89 Shadyside Dr Boardman - Built in 1950s, bought it for $30,250, updated: $9,000, rented out at $775 a month (Boardman)

4. 3403 Lakeside Dr Mineral Ridge - Built in 1940s, bought it for $35,000, updated: $10,000, rented out at $775 a month (Mineral Ridge)

5. 1629 Chattanooga Youngstown - Built in 1950s, bought it for $26,250, updated: $1,500, rented out at $665 a month (Southside)

6. 1935 Cherry Hills Drive Youngstown - Built in 1925, no renovation required, rented out at $550 a month (Southside)

The above shows 20+% rental yield is highly achievable in this market - if I can do it, you can also do it - we are working on 3 other new acquisitions at moment, and all of them are projected to achieve 20% or more in rental yield.

The older homes - while more risky, can achieve better rental yield - renovation is often required, and with new updates such as electrical, furnace, plumbing - older homes can be just like newer homes - and they can be rented out at same rent as newer homes.

If you are interested to receive regular e-mails from us on the new opportunities, please contact us and we will send you property alerts regularly.

Thomas Su

(469) 347 1839