I'm looking at investing in multi family residences in either Ohio or Maine. Having not invested in either, what are the pros or cons pertaining to each state?
I have no idea what Ohio has to offer but in Maine there are many opportunities to buy MF's that will 100% cash flow from the rents. You'll probably need to go well north of Portland to find this but they are out there. Tenant laws are pretty lopsided in the tenant's favor here so make sure you brush up on that part of it too.
I live an invest in Maine and I have invested in the Midwest (not Ohio but IN). Not sure where you are in Ohio but be careful in Maine there can be some opportunity but you really need to know the numbers..make sure you know what is included in rent (heat) and what is not. Couldn't know for sure but I would think of Ohio as a more opportunity in one area...Maine is very spread out once you are north of Portland really
There's a lot of investment activity in Cleveland, Ohio and other midwest cities too. Rents are moderately high and acquisition costs are low. If you're looking to invest remotely, hire the property manager first as a good PM can make a marginal investment and a bad PM can tank an otherwise profitable one. Find and interview the groups that are operating in the cities you're considering targeted and go with the group or groups that you're most impressed with.
Thanks for the replies. This will be a remote investment, so yes, a good PM will be critical. I was not aware of the stickler rental rules for owners in Maine. I understand that this is a bit better for owners in Ohio. I also understand that the income tax rate is better in Ohio than Maine.
Maine income taxes are not great. There are many factors that contribute to a high welfare rate. If you want to do Section 8 properties, you'll never want for tenants.
@Heather Kern , I have done section 8 before with good success for everyone. This is an interesting view point I had not considered.
Section 8 isn't as good as it was 15 years ago. You have to really screen your tenants because the guarantees for damage coverage and even rent are not as good either. Before buying some due diligence on the area will be good as there are some very cheap place in some towns but you won't be able to fill them as the economy is so bad. Tenant law favors the tenants but you can remove people in less than 60 days. In the northern parts you can get one month's security and maybe a little more. In the south you can get first, last and security. You will want a good lease and get references on the manager. I can help you if you decide on the Bangor area.
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