Updated about 10 years ago on . Most recent reply
Bad Areas In the Columbus Ohio Area
Which areas in the Columbus I should watch out for. My property is in the 43222. I was told to me by multiple Investors that it was in a War Zone, and next time I should do research in the neighborhood first. Would anyone with experience in the Columbus market know the Zip codes to WATCH out for?
Most Popular Reply
Hey Daniel,
"Bad" areas and "good" areas are defined by your goals. When I first got into real estate investing, I bought 5 houses at once against the advice of an investor who had over 600 units. They were on: Kelton Ave, N. Champion Ave, 2 on Rankin Ave, and on on Linden Ave... all in Columbus.
My goal was to focus on low-income areas because of the low barrier to entry, the lack of competition, and the ability to improve areas. Through the proper management, over the course of 2 years I had built over $1mm in real estate assets. This was from $0 in real estate assets before my first investment. My goals were to have the highest cash on cash return, and these "bad" areas gave me the opportunity. My time was worth a lot less then than it is now, and I leveraged it for the highest return I could get. HUGE headaches, many late nights, and a lot of hard work. I have since, invested in commercial real estate over $500k per building, I have used my cash to pay for houses over $150k, and I have bought more "bad" area properties.
Through my experiences, you will make the fastest and highest returns in Columbus and Surrounding if you focus on: 3+ bed, 1.5+ bath, attached garages, basements, in areas with very low 'days on market.' typically in houses built after 1980
If you contract at: ARV x .65 - repairs - liens = MAO, you will make money on your flips every time. If you need to wholesale a few for some cash, let me know.