New investor in Greater Cincinnati OH area seeking opportunities

5 Replies

Hi,

I am a new part-time investor in the Greater Cincinnati OH area. My goal is to achieve 100000 annual cash flow within 7 years. 

I have a few questions for the more experienced investors here.

I am working with an agent to shop for my first rental property. However I find it difficult to get a property to meet the 2% rule. I wonder if 2% is possible in Cincinnati area.

Also I am debating on the type of rental properties I should acquire to begin with, single family or multi family.

To achieve my goal I am not sure if I should go for the pricier properties in wealthy neighborhoods or the cheaper ones in the less wealthy areas.

BTW, I have some cash and my current salary should allow me to get a traditional loan of at least 300k.

Thank you!

Jay

What areas are you looking? You should be able to hit good numbers in areas like colerain, forest park, cheviot, covedale, etc.  I'd stick to around 50k to 80k properties if you don't want it to turn into a bunch of work.  You might have to do a little fixing up to get a good deal.  I haven't been looking lately but last year you could get those 3 bed slab houses in colerain for 25-40k they get $750 or so in rent seem to make great rentals.

Originally posted by @Andrew Syrios :

Welcome to BP Jielu! I would discard the 2% rule. It just isn't realistic and can lead investors into bad areas. My full take down on it is here if you're interested: https://www.biggerpockets.com/renewsblog/2015/05/06/2rule-die-horrible-death/

 Andrew,

Thank you! That's a great article. I learned a lot from reading it!

Now it makes more sense why the properties that I looked did not meet the 2% rule. 

Thanks again,

J

Originally posted by @John Whittle :

What areas are you looking? You should be able to hit good numbers in areas like colerain, forest park, cheviot, covedale, etc.  I'd stick to around 50k to 80k properties if you don't want it to turn into a bunch of work.  You might have to do a little fixing up to get a good deal.  I haven't been looking lately but last year you could get those 3 bed slab houses in colerain for 25-40k they get $750 or so in rent seem to make great rentals.

 John,

Thank you for your message.

Currently I am looking at properties in the north, mostly in Warren, Butler and Washington counties.

I will keep an eye on the areas you mentioned.

J

Originally posted by @Jielu Zhao :
Originally posted by @Andrew Syrios:

Welcome to BP Jielu! I would discard the 2% rule. It just isn't realistic and can lead investors into bad areas. My full take down on it is here if you're interested: https://www.biggerpockets.com/renewsblog/2015/05/06/2rule-die-horrible-death/

 Andrew,

Thank you! That's a great article. I learned a lot from reading it!

Now it makes more sense why the properties that I looked did not meet the 2% rule. 

Thanks again,

J

My pleasure! I'm always happy when someone discards the useless 2% rule. That thing is the bane of many a real estate investor's existence. Good luck!