I've been reading several posts on folks buying investment properties in various cities. I am amazed at how much money some of you have to put into these places (just to buy the property, not to mention rehab cost, vacancy loss, etc.) While it is a sellers market in most areas, it seems that Columbus has great value to offer, even with inventory a bit on the low side. We specialize in property for the investor and we are feeling the up swing in business. To me it seems like building a portfolio in a market such as this would prove to be more worth while in the end? Thoughts?
I like where you're going with this:)
How is the Cleveland Ohio market right now?
I mean in NYC it is a sellers market. Very tough to find deals.
Even the mediocre properties are being bought for over asking.
@Justin Lemaster I agree and feel the same about Cleveland, Ohio. Its surrounding suburbs even have so much value! As I continue my search, I feel lucky to be near communities that will aid me in my investing plans.
Unless I'm missing something, it seems very obvious that these markets have great value. I can't wait to get my hands on my first deal.
@Jorge Hernandez hope that answers your question:-)
With all due respect, inventory isn't a bit low in Columbus it's very low. Especially as it pertains to distressed properties that leave enough room for a decent return. Those properties are typically getting a lot of attention and bid up by new and inexperienced investors, fresh off their training seminar, until the risk greatly outweighs the reward. I guess it's fair to say that there's decent value here as it relates to other markets, but is Columbus a magical land of opportunity where everyone gets rich quick and easy? Far from it in my opinion. You can do ok here. I've been doing it for many years and I know others who are doing well in the Columbus market. But you're going to work hard for it here, just as much or more as anywhere else.
If your strategy is slumlording C- to F class properties in C- to F class neighborhoods, then yes, there's a lot of opportunity out there. However, any other decent upside area in Columbus is scorching hot right now. I am seeing any property with enough value baked in to turn a meager profit with 20%-30% equity going at asking price or greater. A lot of 1 day-on-market MLS sales. I was recently prepared to make a $5k-over-ask offer on a property and was told not to bother because there were already offers $25k+… 1 day on market. You will almost certainly have to go off market to get any property in an upside Columbus neighborhood at a value acquisition price.
I agree with Matt and William. To find consistent discounted deals you have to invest in finding off market deals.
My team and I are very active in Ohio, statewide. We are finding our properties thru off-market sources, thanks to my partner. He just happens to be on a buying spree right now. i know we won't be keeping them all for our Turnkey division (where we rehab, get a tenant in place and sell to an investor growing his portfolio). If you have any interest in being notified of any properties we have, please reach out to me.
Buy with extreme caution here in Columbus. Out-of-state investors are paying silly prices for just about anything and everything. There's a reason the local RE investors aren't buying that stuff...
Definitely second Peter's caution. I am on a few of these lists and I am flabbergasted at the so called deals they are offering. Some of the rehabs are way over done for the neighborhood. I don't know how they are asking for 20-30% over the ARV and touting high cash on cash returns. Perhaps that's the only way to make money after the extensive rehab?