Is it possible to BRRRR in Columbus, OH for under $100k?

4 Replies

I am looking to purchase my first rental property. I'm working with a max of $100k total (purchase + rehab). Ideally I would like to purchase a multi-family property. I live out of state, so all my knowledge about the area is from Google and BP posts. Looking at Zillow, it seems that it is possible to find Multi-family properties for as low as $60k (distressed) or $100k (not distressed); however, all these properties seem to be in the West Franklinton and Hilltop area. Doing some research on these locations reveals that they are some of the least desirable places in Columbus, with high crime and not many plans of expansion.

So my question to real estate agents, investors, and anyone else familiar with the area: Is it possible to find a property in Columbus in a decent area (C or above) that can be purchased and fixed up for under $100k? Or do I need to look for another location / adjust my strategy?


Thanks!

I'm sure some professionals will jump in here and give you their take, but I can share a little about my first experience purchasing and renovating a duplex (which is ongoing as I type). I purchased a distressed duplex in the South of Main area of Columbus, which is rough, but in the process of turning; it's adjacent to Olde Towne East, which is very much up-and-coming. I paid 90k and it is needing ~50-55k in renovations (I probably could have done it for a bit less to match the current neighborhood or obviously could have spent more, but I just want to be a step or two in the direction the neighborhood is heading without going too far out on a limb). Higher end fix and flips in the area with a similar blueprint are selling for $275-315k. 

I am covering the renovations partly with cash and partly with 0% credit cards since they are allowing a long runway, about 14-15 months of 0% APR plus the bonus cash/points. My plan is to BRRRR the property and the cash-out should cover most of my purchase and renovations costs. So I would say it is possible to BRRRR on your budget, though in my case I had to finance some of the renovation costs.

I'm new at this, but happy to help where I can - best of luck!

Originally posted by @Matthew Welk :

I am looking to purchase my first rental property. I'm working with a max of $100k total (purchase + rehab). Ideally I would like to purchase a multi-family property. I live out of state, so all my knowledge about the area is from Google and BP posts. Looking at Zillow, it seems that it is possible to find Multi-family properties for as low as $60k (distressed) or $100k (not distressed); however, all these properties seem to be in the West Franklinton and Hilltop area. Doing some research on these locations reveals that they are some of the least desirable places in Columbus, with high crime and not many plans of expansion.

So my question to real estate agents, investors, and anyone else familiar with the area: Is it possible to find a property in Columbus in a decent area (C or above) that can be purchased and fixed up for under $100k? Or do I need to look for another location / adjust my strategy?


Thanks!

Absolutely. Especially on the single family side. You can scoop up properties in 43211, 43224, 43219 all of which i've done flips in. Hilltop can be street by street, you really need to look at comps. I found it hard to renovate there because the homes are 100 years old or close to it AND it's a lower price point. In linden the propers are 40s and 50s and don't have knob and tube, plaster, so they are smaller rehabs. I'm not sure if you are looking for duplexes in those areas too, for that might be a bit tougher because the ones needing repair you are talking two different houses to fix up then (two units), but on the single family side it is for sure. Grove city (43123) is also an area you can find deals like this. Easy BRRRR areas.

Originally posted by @Daniel Judge :

I'm sure some professionals will jump in here and give you their take, but I can share a little about my first experience purchasing and renovating a duplex (which is ongoing as I type). I purchased a distressed duplex in the South of Main area of Columbus, which is rough, but in the process of turning; it's adjacent to Olde Towne East, which is very much up-and-coming. I paid 90k and it is needing ~50-55k in renovations (I probably could have done it for a bit less to match the current neighborhood or obviously could have spent more, but I just want to be a step or two in the direction the neighborhood is heading without going too far out on a limb). Higher end fix and flips in the area with a similar blueprint are selling for $275-315k. 

I am covering the renovations partly with cash and partly with 0% credit cards since they are allowing a long runway, about 14-15 months of 0% APR plus the bonus cash/points. My plan is to BRRRR the property and the cash-out should cover most of my purchase and renovations costs. So I would say it is possible to BRRRR on your budget, though in my case I had to finance some of the renovation costs.

I'm new at this, but happy to help where I can - best of luck!

I agreee with daniel here. This area is going to have older homes (South of Main) but i also bought one that needed everything here for 126k. I'm converting it to condos and putting about 200k into the building. One unit will be a 2 bed 2 bath and the other a 6 bed 6 bath. Kind of ridiculous but you live and learn. He's right it's easy to BRRRR. my friend bought the duplex across the street and is doing something similar to daniel here.

@Matthew Welk It is possible with your budget. You just need to be ready to pull the trigger when the right deal comes along. It also depends on your budget and the team you have built. Being an OOS investor everything is going to cost you more since you are going to have to hire someone to manage your project.

@Daniel Judge , @Robert Ellis , and I can act as our own project managers. You will need to build an additional 35-50% mark up on your rehab costs if you are using a GC.

I recommend you reach out to @Harman N. He is doing something similar to what you want to do. He bought in a C/C- neighborhood for less than $100,000 and will probably be all in at around $100,000 after the minor rehab we are doing. He is also an OOS investor.