Newb: young buck that just moved to Columbus. Any advice on zip codes/strategies?

Question

I have no RE experience. Just moved to Columbus in February from HCOL city. Moved here for the ability to start RE portfolio with a lower upfront cost. Also like the Columbus metrics for population/job growth.

- Don't think I want to BRRR for my first home. Potentially too much work/stress

- I've identified Franklinton as an area I am interested in. I think it will gentrify over the next 5-10 years. Also ideal place to get in with $200-250k home prices

- Won't be living in my first property as owner occupied. Signed a 1 year lease on an apartment that will end EOY.

- I want to be able to get around 1% cashflow, but after lightly crunching numbers, it seems highly unlikely, even in Franklinton.

- Goal is to get an investment property this year and then next year once my lease is over, buy and move into Grandview as property (and owner occupied) #2.

- Long term goal: potentially nomad strategy, adding 1-2 properties per year until I get to 10 properties, at which point I will deeply reflect on what's next.

- What are the best tips/strategies for those that know Columbus well?

Matthew Chau · Answer

@Jimmy Lieu @Remington Lyman @Harrison ChowThank you for all your messages. Hope to learn more from all of your deep experiences.With interest rates at the current market rate and the Columbus market, how prevalent are cash flow positive places (non BRRR in the sense that the place is totally trashed or down to the studs, I am OK with minor work) that are less than $250k, with no more than 20% down payment on a mortgage? Ideally, still in a neighborhood that has the potential for high growth (e.g. Franklinton).

Dominic Pizzi · Answer

You should discuss with the gentlemen from ReafCo @Remington Lyman @Harrison Chow. The two of them have great knowledge of the area and actively invest there as well, so talking to them in an agent and investor space may be beneficial to your overall investment experience in Columbus!

Remington Lyman · Answer

Tips for what?

The Pearl has a sweet happy hour

Steven Foster Wilson · Answer

Hey Matthew, luckily for us, Columbus as a whole has really been brought up, that being said we have A,B, and C areas, so there really isn't anywhere that I would say to stay away from. You could practically throw a dart at a Columbus map and it would hit somewhere that'll make a good investment. I'd say get started now. It will only be good for your future.

Alfath Ahmed · Answer

The Columbus market is great for real estate investors to get started. There are areas that I recommend in the Columbus market that I personally invest in like Old North, Merion Village, Driving Park. These are all great areas that you can buy investment properties in and let your net worth skyrocket.

These are all areas within the Columbus market that is next to an economic base. They are surrounded by economic development which is causing a good increase in population and rent growth.

Let me know if you need information on the Columbus market or just want to simply hop on a call and discuss.

Grant Smith · Answer

The best thing you can do is read a few real estate books, run the numbers of prospective investments every day, go to your local meetups, find an agent, and submit offers.

Take action and you'll be rewarded. The goal isn't to crush it on your first deal but to hopefully get paid to learn.

Everything is 10x easier after your first deal.

Jimmy Lieu · Answer

I still see quite a lot of 1% and positive cash flow deals on a consistent basis - it's important to be flexible and adjust with the market! Few weeks ago, I helped closed a client for 20% cash on cash return and he's absolutely killing it with this deal! Still lots of deal flow left. Also, I do a lot of cold calling and marketing for offmarket and creative finance deals for clients, which is how I found this deal for him.

Matthew Chau · Answer

What to look for in a house at that price range?

What other areas to look for other than Franklinton?

What other tips for a first time home buyer in Columbus?

Any weird laws I need to be aware of?

Harrison Chow · Answer

Hey Matthew! It's great to hear that you're interested in real estate investing! As with any new venture, it's prudent to begin with smaller steps and gradually work your way up to bigger challenges. The same goes for real estate investing. Starting with a small investment and progressively scaling up as you gain more experience can be a wise approach. For your first investment, it's advisable to focus on properties that require minimal repairs or only superficial cosmetic upgrades.It's great that you're starting to network as well. Building relationships with other investors, real estate agents, and property managers in Columbus can provide valuable insights into the local market, investment opportunities, and potential pitfalls.You might also want work with an experienced agent.  An experienced real estate agent can help guide you through the process of finding and acquiring investment properties - both on and off market. They can also help you identify potential issues and offer suggestions for mitigating risk.

Hope this helps and let me know if you want to discuss this topic further! Best of luck in your real estate journey!

Newb: young buck that just moved to Columbus. Any advice on zip codes/strategies?

Most Popular Reply