Experience OOS Investing in Columbus?

Question

Hello all!

I have been doing market research as of lately and am really liking what I see with Columbus, OH. I want to purchase MF properties here, preferably 2-4 units. My largest concern, though, is being out of state.

Have any of you invested in Columbus from out of state? How has your experience been? My largest concern is how old most of the MF properties are—if they cash flow, the newest ones are built in the 50s. The majority are from the 1920s. How has upkeeping the building and general maintenance been?

What has been your average cash-on-cash return as an investor?

Anyways, I just want to gauge whether or not this is the right market for me. All help and feedback is greatly appreciated! Thank you (:

Isaac Hayes · Answer

Account Closed I invest in Columbus, Ohio while living in Texas. It's been a relatively straightforward experience so far after completing around 6 months of hardcore self-education in reading books and listening to podcasts. My average pure cash on cash return should be 8%-9% after raising rents to market price as quoted by my PM and realtor. I see you're concerned about the age of the property as this could increase maintenance and capex relative to a newer and or remodeled property. One way to calculate these costs in your numbers is to use the MRBA and MCEBA calculators from Brandon Turner's multi-family millionaire book bonus content. I've integrated these into my underwriting tool, so age of maintenance/capex by age of property is automatically considered during underwriting.

Jonathan Greene · Answer

Contact @Chinmay N.. He nabbed multiple doors in Columbus in 2021, several close to 2% rule, and he has a team on the ground there.

Clay Boykin · Answer

Account Closed I am happy to hear that you are taking the 5th fastest appreciating market into consideration. I have dealt with a handful of OOS investors and they always seem to have the same concern as you. The thing that changes the most is really boots on the ground. Everything can look good on paper and the house can have 2% return, 12% COC, and a 10% cap but if the house is not appealing to you or your boots on the ground then it will not matter either way.

I had a OOS investor buy a flip in Grove city (South of Columbus/Suburb) and the numbers on that was such: 172k Purchase, ARV 290k (conservative), Rehab 50k, Closing Costs/Realtor Fees just factor in 8% for a budget. Profit 44.8k. That is average for Columbus when it comes to flips.

Since you are looking for MF the numbers will change but the idea stays the same. It really is just learning what market you tap into and identifying what houses "have it" and what houses don't. Happy Investing!

Remington Lyman · Answer

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/blog/core-four-real-estate-team

I invest locally in Columbus, Ohio

Account Closed · Answer

@Jonathan Greene Will do! Is he a property manager too, or just an investor?

Mollie Hess · Answer

Hi Robert! I'm in the Columbus area and happy to chat anytime on the market! I don't currently own any multi-family properties but have been doing some analysis as I'd like to get into them and most that I have researched with conservative numbers do show positive cash flow.

Experience OOS Investing in Columbus?

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