Investing In Westerville Duplexes: Numbers That Matter

Are you eyeing a duplex in Westerville and wondering if the numbers make sense? You’re not alone. Duplexes can be a smart path to steady income and long-term wealth, but only if you run the math the right way. In this guide, you’ll learn exactly which numbers matter, where to find local data, and how to size up a property like a pro. Let’s dive in.

Why Westerville duplexes

Demand drivers

Westerville sits in Franklin County with stable demand from commuters and families. You get strong neighborhood amenities, parks, and easy access to Columbus employers. For a quick snapshot of population and household trends, check the U.S. Census Bureau’s Westerville profile in QuickFacts. For local planning, zoning, and community amenities, use the City of Westerville’s Planning & Development resources.

Rental market checks

Before you analyze any duplex, look at price and rent trends alongside vacancy. For closed-sale price trends and market tempo, review Columbus Realtors market data. Cross-check broader price and rent trajectories with the Zillow Research data center. Vacancy in stable Midwest suburbs often ranges around 4–8 percent, but confirm current figures with local reports and property managers.

Duplex advantages

With two units on one lot, a duplex can reduce income risk if one unit turns over. If you plan to live in one unit, FHA financing may allow a lower down payment on 2–4 unit properties. Review owner-occupant guidelines in HUD’s Single Family Housing Policy Handbook 4000.1. Also confirm zoning and allowable use for the specific parcel through the City’s Planning & Development pages.

The numbers that matter

Gather revenue and expenses

Start with a clean list of inputs so your analysis is consistent.

• Gross Scheduled Rent (GSR): Monthly rent per unit × units × 12.
• Vacancy allowance: Use local vacancy. If unsure, model 5–10 percent.
• Other income: Laundry, parking, pet fees, storage, or utility bill-backs.
• Operating expenses: Property taxes, insurance, owner-paid utilities, repairs and maintenance, property management, advertising, legal/accounting, HOA (if any), landscaping, supplies, and a capital reserve.
• Debt service: Annual principal and interest payments.

Where to get inputs:

• Property taxes: parcel-specific data on the Franklin County Auditor site.
• Rents and trend checks: Zillow Research, local managers, and your on-the-ground comp search.
• Insurance: request local landlord policy quotes.
• Management fees: obtain quotes; most charge a percent of collected rent.

Core formulas

• Effective Gross Income (EGI) = GSR − Vacancy + Other income
• Net Operating Income (NOI) = EGI − Operating expenses
• Cap Rate = NOI / Purchase price
• Cash Flow Before Taxes = NOI − Debt service
• Cash-on-Cash Return = Annual Cash Flow Before Taxes / Total Cash Invested
• Gross Rent Multiplier (GRM) = Purchase price / Gross Scheduled Annual Rent
• Debt Service Coverage Ratio (DSCR) = NOI / Annual Debt Service

What they tell you:

• Cap Rate shows the income yield before financing. Use it to compare properties.
• Cash-on-Cash reveals your return on cash invested after debt service.
• DSCR indicates lender comfort; many want DSCR above 1.2 on investment loans.

Typical local assumptions

These are screening ranges. Refine with real Westerville comps and bids.

• Vacancy: 5–10 percent, depending on location and unit condition.
• Management: 8–12 percent of collected rent for third-party management.
• Maintenance and CapEx reserves: plan $500–1,500 per unit per year for routine upkeep, and $1,500–5,000+ per unit per year for older or renovation-heavy properties.
• Insurance: varies; duplex policies often cost more than single-family but less per door than two separate houses.
• Property taxes: often one of your largest costs. Always use the actual parcel on the Franklin County Auditor to model taxes.

Illustrative duplex pro forma

Use this as a template. Replace with real Westerville prices, rents, and tax figures.

• Purchase price: $300,000
• Rents: $1,200 per unit per month
• GSR: $2,400 per month → $28,800 per year
• Vacancy at 6 percent: $1,728 → EGI = $27,072
• Operating expenses (annual):
  • Property taxes: $3,000
  • Insurance: $1,200
  • Maintenance/repairs: $2,400
  • Management (10 percent): $2,707
  • Owner-paid utilities: $1,200
  • CapEx reserve: $1,200
  • Misc/other: $500
  • Total operating expenses: $12,207
• NOI: $27,072 − $12,207 = $14,865
• Cap Rate: $14,865 / $300,000 = 4.95 percent
• Financing example: 25 percent down, $225,000 loan at 6 percent for 30 years → annual debt service ≈ $16,200
• Cash Flow Before Taxes: $14,865 − $16,200 ≈ −$1,335

What this shows: even a solid duplex can run negative if rents lag, taxes are higher than expected, or loan terms are tight. Small changes to rent, taxes, or interest rate can flip your cash flow. Always model different scenarios.

Financing options at a glance

Owner-occupant path

If you plan to live in one unit, FHA may allow as little as 3.5 percent down on a 2–4 unit property. Review the rule set in HUD’s Handbook 4000.1. This setup can improve affordability and help you build equity while your second unit helps cover the mortgage.

Investor loan path

If you will not occupy the property, conventional loans typically require 20–25 percent down and a DSCR above 1.2. Rates and fees vary by lender and market cycle. Get quotes from multiple lenders and compare total cost, not just rate.

Westerville due diligence checklist

Use this step-by-step list to verify each number before you offer.

1. Pull parcel taxes and history on the Franklin County Auditor. Annualize taxes and plug into your pro forma.
2. Confirm zoning and allowable use with the City’s Planning & Development. Verify a duplex is permitted at the address.
3. Check rental registration or inspection requirements on City pages. Note fees, timelines, and compliance steps.
4. Build rent comps from on-market and recent leased units. Cross-check trend data with Zillow Research. Verify unit-level features, parking, and utilities.
5. Inspect condition and budget CapEx. For homes built before 1978, plan for lead disclosure compliance. Verify smoke/CO detectors and GFCI protection.
6. Verify utilities and meters. Confirm whether electric, gas, water, and sewer are separately metered or master-metered.
7. Get insurance quotes for a landlord policy and consider an umbrella policy.
8. Check flood risk on FEMA’s Flood Map Service Center. Some parcels near waterways may need flood insurance.
9. Review Ohio landlord-tenant rules in the Ohio Revised Code Chapter 5321. Understand deposits, notices, and timelines.
10. Sense-check demand and jobs with the BLS Columbus MSA overview. Strong job centers support rent stability.

Local risks and operating realities

• Property taxes: Reassessments, school levies, and special assessments can shift your expense line. Model a range and verify on the Franklin County Auditor.
• Vacancy and leasing time: Budget realistic days vacant and make-ready costs. Quality photos and good maintenance help reduce downtime.
• Eviction timelines: Ohio courts follow state law, but timing varies. Plan for turnover and legal costs and consult a local attorney on process.
• Condition and CapEx: Major systems like roof, HVAC, windows, and plumbing drive long-term returns. A solid reserve helps you avoid cash crunches.
• Flood and site risk: Confirm flood zones and drainage patterns. Insurance costs can change your deal math.

Put it together

When you underwrite a duplex, start with clean inputs, apply the formulas above, and test best, base, and worst-case scenarios. If you want a second set of eyes on your numbers, you’ll benefit from a local advisor who blends neighborhood insight with property-management and accounting experience.

If you want help running the math, reality-checking rents, or planning a purchase strategy for Westerville, reach out to Jason Peeler for a local, data-driven consultation.

FAQs

What is a good cap rate for a Westerville duplex?

• Many Midwest suburbs trade around 4–8 percent depending on location, condition, and market cycle. Compare multiple comps and verify current rents.

How do I estimate property taxes for a duplex in Westerville?

• Look up the parcel’s tax bill and history on the Franklin County Auditor, then annualize it in your pro forma and stress test for increases.

Can I use FHA to buy and live in a Westerville duplex?

• Yes, FHA may allow 3.5 percent down for owner-occupants on 2–4 units; confirm details in HUD’s Handbook 4000.1 and with your lender.

What vacancy rate should I use in my pro forma?

• Start with 5–10 percent and adjust for the micro-location, unit condition, and local leasing feedback from property managers.

Do I need to register a rental in Westerville?

• Check current requirements and codes on the City’s Planning & Development pages for registration and inspections.

How does DSCR affect my loan approval as an investor?

• Many lenders want DSCR above 1.2, meaning your NOI should cover debt service with a margin. Ask lenders for their specific DSCR and reserve rules.