Thinking about flipping houses in Ohio

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Thinking about flipping houses in Ohio

Sara Booth
Member since 2021 · 9 posts · 9 votes

Hello, Newbie here. I need opinions on this idea.


I have $100,000 I want to invest in real estate. I live in Los Angeles and I have family in Cleveland, Ohio. The last time I visited Cleveland I had the idea to start flipping houses out there. Since I have family there who can help oversee projects and provide a place for me to stay when I fly out it seems doable. Also, $100,000 seems like it could go a long way in that area. 

Thoughts on this?

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Kyle Tom
Property Manager · Columbus, OH · Member since 2021 · 66 posts · 121 votes
5y

@Justin Gottuso, I try to walk people through the steps of investing when they are doing out of state investing for the first time. It's for sure scary but after you buy one property, you look back and go: "That wasn't too hard!" and want to do it again and again. It gets pretty addictive.


@Sara Booth, I saw you said you're from LA - I use to design part of the power grid for LADWP and lived in downtown Los Angeles for a year - I hated the traffic! No matter what time of the day I left at... 7am, 10am, 4pm, 1am, there was always traffic! I prefer Columbus Ohio! When it rains, all the freeways don't shut down... haha.

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  • Jason Shackleton
    Investor · Ontario · Member since 2015 · 486 posts · 250 votes
    5y

    @Sara Booth Anything is doable. Are you going to move to the area and be active and hands on with the flip deal? If not a long distance flip deal is likley not a good idea for your first deal. There is a lot more to it than meets the eye. However if the numbers work in that area, perhaps you can JV with one of your family members and they can be hands on or manage the renovation.

    Good Luck

    1Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Jason Shackleton No I won’t be moving out there because I work a full time job here but I could manage to fly out a couple weekends during the month and my family member would be able to manage the actual renovation. However, we are both inexperienced so maybe that is too much of a risk for my first one. 

    Thank you for your input, I really appreciate it. 

    1Reply
  • Michael Carbonare
    Investor · Fort Lauderdale, FL · Member since 2013 · 918 posts · 607 votes
    5y

    @Sara Booth  What Jason said.  Doing long distance, or virtual deals as we call them, can be a profitable endeavor and a path to expand your real estate wheeling and dealing.  But for someone with limited experience it probably isn't a good jumping off point.  Even a small problem becomes a big one when a rental property is 2000 miles away.

    1Reply
  • Dan Portka
    Real Estate Agent · San Pedro, CA · Member since 2019 · 253 posts · 128 votes
    5y

    @Sara Booth having boots on the ground you trust is a big advantage when investing OOS. Sure there's a lot of risk because you're both inexperienced, but everyone has to start somewhere. maybe for your first couple properties start with a smaller rehab or do a BRRRR, something with less upside but also less risk. after a couple deals you'll start building the confidence to do more challenging rehabs.. have you started educating yourself (books, podcasts, etc) and networking with other investors doing something similar?

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y

    $100k is a decent starting budget. You'll want to look at the inner ring suburbs. You'd be hitting houses that sell to 1st time home buyers and things of that nature.

    0Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Michael Carbonare do you think it would be more wise to start in LA or closer to me? The only reason I wanted to do Ohio was because it seemed like I could use my own 100k to get a whole job done and I wouldn’t have to take out any loans. 

    0Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Dan Portka you are right, a smaller rehab would definitely be more ideal for our first flips. I have been trying to educate myself. I’ve been listening to the bigger pockets podcast everyday, I have talked to other people who flip houses (but not in the same way I am trying to do it with the distance factor) and I also reached out to an agent located in Ohio to try to ask for help. He advised against flipping but his reasoning was that he thinks the market is going to crash soon and not anything to do with distance. 

    0Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @James Wise do you think I could pull it off without taking out a loan? And do you think the distance factor creates too much risk?

    0Reply
    • James Wise
      Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
      5y
      Originally posted by @Sara Booth:

      @James Wise do you think I could pull it off without taking out a loan? And do you think the distance factor creates too much risk?

      Yes you can flip a house without a loan if you've got $100k in cash.

      Being out of state does increase risk, absolutely. It's not impossible to do though so long as you're working with the right locals and getting the proper due diligence performed.

      1Reply
  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    5y

    I'm following up with other's suggestions. Make sure you have a good team in place. I'd also say that in order to flip in today's market you must have a good wholesaler and agent contact.

    0Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Stephen Brown @James Wise thank you both for input and advice. I really appreciate it. 

    0Reply
  • Jonathan PavkovBusiness Member
    Columbus, OH · Member since 2021 · 201 posts · 166 votes
    5y
    Originally posted by @Sara Booth:

    Hello, Newbie here. I need opinions on this idea.


    I have $100,000 I want to invest in real estate. I live in Los Angeles and I have family in Cleveland, Ohio. The last time I visited Cleveland I had the idea to start flipping houses out there. Since I have family there who can help oversee projects and provide a place for me to stay when I fly out it seems doable. Also, $100,000 seems like it could go a long way in that area. 

    Thoughts on this?

     Why are you trying to flip? Do you want the additional income this year? Or are you interested in RE investing, and flipping seemed like a smart option. With $100k and a W2 job, you could land ~$500k of a solid investment to get cash flow + appreciation. Depends on your ultimate goals.

    [email protected]614-802-5721
    2Reply
  • Justin Gottuso
    Rental Property Investor · Columbus, OH · Member since 2015 · 184 posts · 162 votes
    5y

    @Sara Booth

    Hi Sara. Great idea! I was born and raised in LA and moved to Columbus in 2020 with my family and started actively investing (see bio for the story).

    I'm just about to start flipping and doing BRRRR deals in Dayton (west of Columbus), Columbus and Newark (east of Columbus). I had planned originally to use all our own cash to fund the projects, but since I want to scale and reach our FIRE goals sooner rather than later, opting to go with private money lenders so that $100k can pay for 3-4 down payments on projects as well as have less invested in case it goes south somehow and I need to sell/get out.

    Real estate investing is a team sport. Besides your family do you have connections with a great broker/agent to source deals, contractor for the rehab, lender if you decide to go that route, etc? I’ve spent much of this past year building relationships and it really pays off. Maybe network on BP and in the Facebook groups and next time you go to cleveland meet up with them to share your goals and tour some properties and neighborhoods.

    3Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Jonathan Pavkov the idea I had was that I could make the 100k grow by flipping houses in Ohio and then, if I were to do well after a couple or a few flips I could use the money made from it as a down payment for an investment property closer to me, and then just continue to work with the 100k to flip and then fund more investment properties. 

    1Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Justin Gottuso I think you’re right about your approach. It’s smart to have that nest of 100k ready to use as down payments. 

    I do not have my team together yet. That’s another issue with it, because I am so far away, I haven’t been able to make those relationships just yet.

    I like that networking strategy though. This has been very helpful. Thank you 

    1Reply
  • Justin Gottuso
    Rental Property Investor · Columbus, OH · Member since 2015 · 184 posts · 162 votes
    5y

    @Sara Booth I’ve found BiggerPockets and real estate investors and RE professionals very willing to help and share knowledge and skills. And putrid your ideas and goals out there let’s people know what you’re trying to do. Maybe fill out your BP profile and share your story too.

    0Reply
  • Sara Booth
    OP
    Member since 2021 · 9 posts · 9 votes
    5y

    @Justin Gottuso great advice! I will do that. Thank you again

    1Reply
  • Kyle Tom
    Property Manager · Columbus, OH · Member since 2021 · 66 posts · 121 votes
    5y
    Originally posted by @Sara Booth:

    @Justin Gottuso I think you’re right about your approach. It’s smart to have that nest of 100k ready to use as down payments. 

    I do not have my team together yet. That’s another issue with it, because I am so far away, I haven’t been able to make those relationships just yet.

    I like that networking strategy though. This has been very helpful. Thank you 

     Hey Sara, I saw you say you don't have a team lined up. I was born and raised in CA and was an out of state investor at one point so I understand what you are going through. I would recommend that instead of trying to line up your entire team before you start, always focus on the next step in the process. I've met a lot of investors that end up in an analysis paralysis state.

    For example, do you know how to analyze a deal to know if it would be considered a good or bad investment for you?

    2Reply
  • Justin Gottuso
    Rental Property Investor · Columbus, OH · Member since 2015 · 184 posts · 162 votes
    5y

    @Kyle Tom @s@Sara Booth

    Yes great points. I analyzed lots of deals my agent would send me, getting to know what a good vs great deal was. Then a great deal came along and I seized the opportunity- I didn’t have the whole team of people at that point but it grows over time as you learn more and as you need professional services. Like how I built a relationship with an insurance agent when I needed insurance- but I’d still recommend networking and getting to know different kinds of people in the industry.

    1Reply
  • Kyle Tom
    Property Manager · Columbus, OH · Member since 2021 · 66 posts · 121 votes
    5y

    @Justin Gottuso, I try to walk people through the steps of investing when they are doing out of state investing for the first time. It's for sure scary but after you buy one property, you look back and go: "That wasn't too hard!" and want to do it again and again. It gets pretty addictive.


    @Sara Booth, I saw you said you're from LA - I use to design part of the power grid for LADWP and lived in downtown Los Angeles for a year - I hated the traffic! No matter what time of the day I left at... 7am, 10am, 4pm, 1am, there was always traffic! I prefer Columbus Ohio! When it rains, all the freeways don't shut down... haha.

    3Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Sara Booth:

    Hello, Newbie here. I need opinions on this idea.


    I have $100,000 I want to invest in real estate. I live in Los Angeles and I have family in Cleveland, Ohio. The last time I visited Cleveland I had the idea to start flipping houses out there. Since I have family there who can help oversee projects and provide a place for me to stay when I fly out it seems doable. Also, $100,000 seems like it could go a long way in that area. 

    Thoughts on this?

    Flipping can be difficult. I would recommend you start off with a buy and hold before you start trying to flip.

    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

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Sara Booth unless you have contractors you trust do NOT DO IT . Do not plan on just hiring guys and hoping they do the work, you will 100% get ripped off , this is not speculation. BTW good luck even finding a contractor, ( I have about 25 guys ) they are all super busy .  Also 100k is NOT enough, maybe 4, 5 year ago but not now. . Also how are you going to find deals a realtor, COMPLETE waste of time ? Do you have any experience in the market ?  I am speaking from 10 years exp, having done about 500 deals out there for about 34 mill. i AM  NOT SOLICITING,    Also for you to find a flip is not going to be easy nearly impossible actual. Why would anyone give you a property to flip ? I do them all the time, again about 500, but I am selling to investors that want rentals. 

    Good Luck  

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Sara Booth:

    Hello, Newbie here. I need opinions on this idea.


    I have $100,000 I want to invest in real estate. I live in Los Angeles and I have family in Cleveland, Ohio. The last time I visited Cleveland I had the idea to start flipping houses out there. Since I have family there who can help oversee projects and provide a place for me to stay when I fly out it seems doable. Also, $100,000 seems like it could go a long way in that area. 

    Thoughts on this?

    I started flipping down in Columbus, Seems like the properties under $100k all in are the best! Less work, most profit.  

    1Reply
  • Neil Rose
    Flipper/Rehabber · Jacksonville, FL · Member since 2020 · 45 posts · 12 votes
    5y

    It would be hard to do something local with 100k. I would suggest finding a team to work with. Someone who also puts on a chunk of money - you be the 1st lender and you do a JV.

    The person you partner with should have experience they can show, referrals you can contact and must be willing to put their own money into the project. Would be best to work with a local broker who has experience flipping, a contractor who has experience flipping etc.

    Doing it all on your own and risking all of your money thousands of miles away with someone who isn’t experienced, isn’t putting cash into the the deal and has no personal vested interest in the property is a disaster waiting to happen.


    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    Hi Sara, $100K can absolutely go a long way. You could even finance part of the purchase to up your buying power. Depending on the deal, I typically leverage my capital for BRRRRs. 

    0Reply
  • Nabil SuleimanBusiness Member
    Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votes
    5y

    @Sara Booth

    I have a friend who's moving out there specifically to do just this. He was doing flips and developments in LA and is moving there to increase his momentum. 

    [email protected]661-904-1725
    Atlas Elm | Nabil Suleiman4.47 Reviews
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    1Reply
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