Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
2y
Hey Josh, I am always down to talk about real estate investing in Columbus, Ohio. I started off with a duplex in 2020 and now have a solid portfolio of rentals with my partner.
I invest locally in Columbus Ohio. I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!
Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
2y
Hey Josh, I am always down to talk about real estate investing in Columbus, Ohio. I started off with a duplex in 2020 and now have a solid portfolio of rentals with my partner.
I invest locally in Columbus Ohio. I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Hey Josh, I live and invest in Columbus and am looking to expand to Cincinnati as well. I think going with a turnkey strategy is a great option, since you are out of state. It will make it a more manageable investment, having a busy schedule outside of real estate. I'd suggest a B or B- neighborhood due to lower average costs of maintenance and high appreciation. I would be happy to discuss more and talk about some neighborhoods to look into.
Hey Josh, I live and invest in Columbus and am looking to expand to Cincinnati as well. I think going with a turnkey strategy is a great option, since you are out of state. It will make it a more manageable investment, having a busy schedule outside of real estate. I'd suggest a B or B- neighborhood due to lower average costs of maintenance and high appreciation. I would be happy to discuss more and talk about some neighborhoods to look into.
Also, Thanks for the suggestions. I also think a B, B-, or even C+ neighborhood would be great starting point. From the research I've done, some of my favorite spots would be German Village or surrounding areas. Such as Merion Village, Livingston park, or old town east. Of course Short north district is cool but may be too pricey. Grandview area also sounds like a good opportunity.
What are yall's thought on the west side? I found a real nice summary of a handful of neighborhoods from some locals on reddit.
"West of downtown is Franklinton (the bottoms). East Franklinton used to flood massively and there hasn’t been development there until relatively recently. Now it’s seeing a ton of investment. West Franklinton is extremely impoverished and high crime. Further West is Hilltop which is a large area but also known for high crime, poverty, and the Hollywood casino. "
Real Estate Agent · Pittsburgh, PA · Member since 2017 · 150 posts · 70 votes
2y
@Josh Trup Hey Josh, Pittsburgh is definitely worth doing a deep dive into. For the criteria you have mentioned, there is no shortage of inventory in the Pittsburgh area. Do you have a target return (cap rate/COC, etc) in mind?
@Josh Trup Hey Josh, Pittsburgh is definitely worth doing a deep dive into. For the criteria you have mentioned, there is no shortage of inventory in the Pittsburgh area. Do you have a target return (cap rate/COC, etc) in mind?
Hey Max, Thanks for taking the time to respond. I did spend a good amount of time looking into Pittsburgh and it does seem there is more inventory there. The main thing I didn't like about it was the higher property tax. It seems you pay more for the schooling there. Columbus seems to be more liked throughout the forums and growing rapidly.
In general though I'm of the opinion that its not super important which city I pick (as long as its one of my top 5) but the actual neighborhood, property & team that I find and use is most important.
1. I'd house hack if you can. That is a great way to build wealth. There is a misconception that you're supposed to cash flow or break even on a house hack... and you're not. You're just supposed to switch your rent payment for a mortgage payment, and if the rent covers some of the mortgage such that you're paying less, that's great. But it doesn't have to.
3. Finally, if you do end up picking an OOS market, I strongly recommend you go there in person to set up your team. Unfortunately there's no 'quarterback / coordinator' even when you do have a team - that would be you. There are so many forum posts from OOS investors, especially in California, who rush into something in the midwest and then get crushed by capex - a foundation issue, a roof, etc.
$100K is a lot to put into a random property in the midwest... and, as is a feature of real estate, the nicer the property you buy, the less you're going to cash flow.
Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
2y
@Josh Trup, Have you thought of HouseHacking locally? That could be a great option too. I help many 1st time househackers here in SD. Some now working on their 3rd househack.
@Josh Trup, Have you thought of HouseHacking locally? That could be a great option too. I help many 1st time househackers here in SD. Some now working on their 3rd househack.
Hey! Too be honest I'm not currently willing to give up my current living situation. I'll pm you details.
Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Thanks from San Diego, Josh
Hey Josh, I just sent you a message about Cincinnati
Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Thanks from San Diego, Josh
Hey Josh, I just sent you a message about Cincinnati
Hi Sam, Thanks for reaching out. Cincinnati is still somewhere I'm open to looking at so I will get back to you. Thanks,josh
Chicago Area, IL · Member since 2024 · 54 posts · 49 votes
2y
Brick is lower maintenance, but don't let it go 20 years without inspection. Tuckpointing will be required, as mortar can deteriorate due to vines growing into it, water getting into cracks and freezing, TV antenna masts mounted to Chimneys, or the side of the building and flexing in the wind, loosening the bricks it is attached to.
Wood needs to be painted to keep it from getting exposed to the weather. Like the roof, and anything else, ignoring maintenance will only increase expenses for later repairs.
Spring and fall are great times to inspect the house, and while batteries for smoke detectors can be left to the renter, replacing those, or water filters, etc, are great reasons to inspect the property. And while you are there, making sure the renter isn't destroying the property.
Brick is lower maintenance, but don't let it go 20 years without inspection. Tuckpointing will be required, as mortar can deteriorate due to vines growing into it, water getting into cracks and freezing, TV antenna masts mounted to Chimneys, or the side of the building and flexing in the wind, loosening the bricks it is attached to.
Wood needs to be painted to keep it from getting exposed to the weather. Like the roof, and anything else, ignoring maintenance will only increase expenses for later repairs.
Spring and fall are great times to inspect the house, and while batteries for smoke detectors can be left to the renter, replacing those, or water filters, etc, are great reasons to inspect the property. And while you are there, making sure the renter isn't destroying the property.
Great advice, would it be wise to schedule a yearly inspection for such things? Does anyone else do this? Since im OOS i think it could be helpful
1. I'd house hack if you can. That is a great way to build wealth. There is a misconception that you're supposed to cash flow or break even on a house hack... and you're not. You're just supposed to switch your rent payment for a mortgage payment, and if the rent covers some of the mortgage such that you're paying less, that's great. But it doesn't have to.
3. Finally, if you do end up picking an OOS market, I strongly recommend you go there in person to set up your team. Unfortunately there's no 'quarterback / coordinator' even when you do have a team - that would be you. There are so many forum posts from OOS investors, especially in California, who rush into something in the midwest and then get crushed by capex - a foundation issue, a roof, etc.
$100K is a lot to put into a random property in the midwest... and, as is a feature of real estate, the nicer the property you buy, the less you're going to cash flow.
Hope this gives you some things to think about
1. Great advice and thanks for your input. I currently rent from my mother in an amazin neighborhood in san diego so I dont want to give up my current living situation. And im putting money back into the family so im totally ok with renting.
2. Even if I am not cash flowing for say the first 10 years /30. This investment should still be worth it. Given the property appreciates decently well it would still be a good investment and I'm building equity.
3. I absolutely plan on flying there to check out the neighborhood and meeting the agent/team that I'm working with. I will have an extra 15k set aside for any Capex that may come up, and if necessary I can dip into my other brokerage account for further hidden costs. And ya i'm hoping to get a good B neighborhood with some cashflow and decent appreciation. Just hard to find the right one!
1. I'd house hack if you can. That is a great way to build wealth. There is a misconception that you're supposed to cash flow or break even on a house hack... and you're not. You're just supposed to switch your rent payment for a mortgage payment, and if the rent covers some of the mortgage such that you're paying less, that's great. But it doesn't have to.
3. Finally, if you do end up picking an OOS market, I strongly recommend you go there in person to set up your team. Unfortunately there's no 'quarterback / coordinator' even when you do have a team - that would be you. There are so many forum posts from OOS investors, especially in California, who rush into something in the midwest and then get crushed by capex - a foundation issue, a roof, etc.
$100K is a lot to put into a random property in the midwest... and, as is a feature of real estate, the nicer the property you buy, the less you're going to cash flow.
Hope this gives you some things to think about
Also, I just read that thread you linked, I think the biggest thing is she has only invested in SFH, which generally don't cashflow nearly as well as Multifamily. I think she should be patient as someone else had commented and continue to build equity. She should be able to raise the rents over time and grow some more cashflow.
i think it's easy to look at the thread and say that if she'd only bought better deals, she'd cash flow. i don't think that's the lesson at all though. so caveat emptor.
i think it's easy to look at the thread and say that if she'd only bought better deals, she'd cash flow. i don't think that's the lesson at all though. so caveat emptor.
Ya, I understand what you're saying! It's definitely not an easy task. I will try to check all aspects of the property and make sure nothing is missed before I consider buying anything. And I will find my own inspector rather than use one provided to me by any agent or related party as I've read they may not have your best interests in mind.
Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Thanks from San Diego, Josh
Hi Josh, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!
Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Thanks from San Diego, Josh
Hi Josh, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!
Thanks for your input! I agree! I am now working with someone but will reach out If anything changes. Thanks so much!
Realtor · Indianapolis, IN · Member since 2017 · 87 posts · 48 votes
2y
Hi Josh! Congrats on clearing that first hurdle in the process. I'm a former OOS Investor investing in the Indianapolis market. I relocated here from Oregon a few years ago to grow our portfolio and help other investors. I'm a licensed agent, own a property management company and have a great network of contractors we work with so feel free to reach out if you'd like to chat more about this market. *I also know of a cool property you might consider here. Recently rehabbed larger home in a great location downtown with a separate carriage house apartment over the 3 car detached garage. Not a traditional multi-family property but might be worth considering.
Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Thanks from San Diego, Josh
Josh, I would look into the Columbus market. I personally invest here and work with a lot of out of state investors who have been successful here. Columbus has become a major tech-hub with Intel, Amazon, and Google investing here. Below are all factors I look out for when I personally invest. Columbus has been a positive for me!
Population Growth: Target cities with a minimum 1.5% YoY growth over the past 20 years and populations exceeding 100,000. (Use tools like loopnet, Costar demographics, and crime maps. Check with local governments for their economic plans.)
Job Growth: Prioritize areas with a minimum of 2% employment growth YoY for the past two decades. (Investigate the presence of Fortune 100 companies and industry diversity, using resources like metropolitan council reports and broker websites (e.g., CBRE, Colliers).)
Affordability: Ensure household income has grown at least 1% YoY for the past 20 years. Be wary if rents exceed 1/3 of average incomes.
Absorption/Vacancy: Consult National Association of Realtors for market time and inventory insights. Evaluate historical and current vacancy rates, aiming for decreasing trends.
Demographics: For younger populations, focus on proximity to parks and schools. For older demographics, consider the availability of medical centers, entertainment, and restaurants.
Buildings/Permits: Assess the city's growth compared to previous years.Determine if the city can accommodate future supply.
Government Regulations: Examine the city's efforts and the type of businesses they are targeting. Be cautious of cities that aren't proactive in job attraction; too much growth can lead to strict building regulations, affecting housing value.
Other Factors
- Favor cities with a crime index that has consistently decreased over a decade.
- For appreciation, I look for a minimum of 2.5% YoY growth in median house values over the past 20 years but I don't use this explicitly in calculations.
Hello all! 25 Yo from SoCal. Been researching for the last couple weeks and just got pre approved with my friend who is a lender for up to 600k purchase price on an investment property loan with 20% down. Ideally though I'd like to keep it 400k or less. Unless I find something I really like.
Been looking in Columbus, Cincinnati, Pittsburgh, and Indianapolis. So far Columbus seems to be my favorite and I think I will focus my efforts there. I'm open to anything 4 units or less. I am leaning towards something that is more turn key ready since it is my first time. Small repairs would be ok If I can find a team that I like.
It seems a lot of the homes in these areas are very old, and lots of them brick. Should I prioritize brick over wood? I've read they last far longer, more weather proof. Another question I had regarding Ohio, are property taxes higher for OOS investors? The places I was looking at had around 1.5-1.7% prop tax.
I will need an Agent, Property Managers, and maybe contractor/ Handyman. If you have any recs it would be much appreciated!
Thanks from San Diego, Josh
I'm glad you found the midwest to be a great investment market. Columbus is growing rapidly and there are a lot of 1-4 unit opportunities here. Most cash flow will be in B-/C+,C, C- areas though. If you buy a single family you will need to put 20% down, versus a 2-4 unit will need to put 25% down. I wouldn't worry too much about building structure (although brick townhome buildings are very attractive), I would instead focus on overall quality of the building and the results of the inspection report findings.
Property taxes in Columbus are around 2% for 1-3 units and 2.7% off auditor assessed value for 4+ units.
Brick is lower maintenance, but don't let it go 20 years without inspection. Tuckpointing will be required, as mortar can deteriorate due to vines growing into it, water getting into cracks and freezing, TV antenna masts mounted to Chimneys, or the side of the building and flexing in the wind, loosening the bricks it is attached to.
Wood needs to be painted to keep it from getting exposed to the weather. Like the roof, and anything else, ignoring maintenance will only increase expenses for later repairs.
Spring and fall are great times to inspect the house, and while batteries for smoke detectors can be left to the renter, replacing those, or water filters, etc, are great reasons to inspect the property. And while you are there, making sure the renter isn't destroying the property.
Great advice, would it be wise to schedule a yearly inspection for such things? Does anyone else do this? Since im OOS i think it could be helpful
Lease agreements allow inspections with notice, or access to the unit in an emergency, like a neighbor reporting a water leak, or a gas smell. But spring and fall are good times to do regular inspections while doing maintenance. Cleaning the furnace, A/C, flushing a water heater, checking fire extinguishers, or things you might want to take on, to make sure they are done, like smoke detector batteries, water filters, or anything the tenant might neglect. While you are doing that maintenance, it pays to look for things like water stains that could indicate a pipe leak, or a leaky roof. While looking around, you might notice other things, like a dripping faucet, or even damage caused by the tenant, like holes punched in the wall, or broken appliances. Normally, the tenant would complain about these things, but some tenants won't, and repairs like a leaky roof, or anything with water damage, are more expensive when neglected. And some might try swapping appliances out for cheaper units.
Like regular rent increases, regular inspections allow you to stay in control of things. It shows the tenant that you want to keep the unit in good shape. And if you have a problem with a tenant that has been there several years, and suddenly you want to inspect, that might seem unusual, and cause problems, where regular inspections are then expected.
As far as yearly, or twice a year, that is up to you, but just remember that the earlier you catch a problem, the cheaper it will be to fix it. And since any management company should be driving by once a month, or so... scheduling an inspection and stopping by shouldn't be a problem.
Brick is lower maintenance, but don't let it go 20 years without inspection. Tuckpointing will be required, as mortar can deteriorate due to vines growing into it, water getting into cracks and freezing, TV antenna masts mounted to Chimneys, or the side of the building and flexing in the wind, loosening the bricks it is attached to.
Wood needs to be painted to keep it from getting exposed to the weather. Like the roof, and anything else, ignoring maintenance will only increase expenses for later repairs.
Spring and fall are great times to inspect the house, and while batteries for smoke detectors can be left to the renter, replacing those, or water filters, etc, are great reasons to inspect the property. And while you are there, making sure the renter isn't destroying the property.
Great advice, would it be wise to schedule a yearly inspection for such things? Does anyone else do this? Since im OOS i think it could be helpful
Lease agreements allow inspections with notice, or access to the unit in an emergency, like a neighbor reporting a water leak, or a gas smell. But spring and fall are good times to do regular inspections while doing maintenance. Cleaning the furnace, A/C, flushing a water heater, checking fire extinguishers, or things you might want to take on, to make sure they are done, like smoke detector batteries, water filters, or anything the tenant might neglect. While you are doing that maintenance, it pays to look for things like water stains that could indicate a pipe leak, or a leaky roof. While looking around, you might notice other things, like a dripping faucet, or even damage caused by the tenant, like holes punched in the wall, or broken appliances. Normally, the tenant would complain about these things, but some tenants won't, and repairs like a leaky roof, or anything with water damage, are more expensive when neglected. And some might try swapping appliances out for cheaper units.
Like regular rent increases, regular inspections allow you to stay in control of things. It shows the tenant that you want to keep the unit in good shape. And if you have a problem with a tenant that has been there several years, and suddenly you want to inspect, that might seem unusual, and cause problems, where regular inspections are then expected.
As far as yearly, or twice a year, that is up to you, but just remember that the earlier you catch a problem, the cheaper it will be to fix it. And since any management company should be driving by once a month, or so... scheduling an inspection and stopping by shouldn't be a problem.
