Columbus, Ohio - Buy and Hold Rental Properties??

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Columbus, Ohio - Buy and Hold Rental Properties??

Josh Madruga
Rental Property Investor · Modesto, CA · Member since 2019 · 11 posts · 7 votes

Hello BP Community,

I'm a REI out of Central California, with multiple SFH invested locally. I am looking to make the jump to start investing out of state I've been researching a few different cities across the country and Columbus, Ohio keeps popping up. The prices look pretty good from afar, and the other demographics look pretty solid (job growth, population growth, crime decrease, etc)

Is anyone out there buying and holding in Columbus?? Just wanted to know if the quality of homes that are listed online are good investments, or is everything that's cheap in really rough neighborhoods..  What neighborhoods/suburbs are you having success in, and are you buying single family homes, or multi family. Thanks guys!

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Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
6y
Originally posted by @Josh Madruga:

Hello BP Community,

I'm a REI out of Central California, with multiple SFH invested locally. I am looking to make the jump to start investing out of state I've been researching a few different cities across the country and Columbus, Ohio keeps popping up. The prices look pretty good from afar, and the other demographics look pretty solid (job growth, population growth, crime decrease, etc)

Is anyone out there buying and holding in Columbus?? Just wanted to know if the quality of homes that are listed online are good investments, or is everything that's cheap in really rough neighborhoods..  What neighborhoods/suburbs are you having success in, and are you buying single family homes, or multi family. Thanks guys!

Hi Josh, here's what I would say. With 30k+ homes in columbus a year (single fam), there's definilty a lot more opportunities that way. I just put a single family under contract for a client, the median home in the area is 160k and this is remodeled at 135k and the comps show it's at like 180k value. just an investor that had to unload it quickly. He'll rent it out and easily have appreciation. It's in hungarian village and appreciation year over year there was 10% plus. I think buying SFRs gives you more appreciation potential and less competition. Areas like 43224, 43207, 43123, 43211 (North of Hudson), 43219 (certain areas), 43206, 43222 among others are some of areas that SFR buyers and investors are investing.

In terms of multifamily, I would agree that it's competitive. But if you are moving quickly, there are still plenty of deals to be had all over the city. As of today there are 158 properties for sale active in the columbus ohio multiple listing service. About 4 new listings per day come on the market for multifamily. so not a lot to look through each day if you are serious. 959 properties on the multifamily side closed in the last 12 months in central ohio or about 2-3 per day. Same zips as above are some of the great ones to keep an eye out in. For multifamily i'd focus on stuff newer than 1950 so your maintenance costs are lower. Something i've learned from rehabbing 25+ properties. 

There are a lot of great meetups for investors to go to if you want to network and there are guys doing deals every month. So yes, plenty of buying and holding going on :) Welcome to the forums and I hope this helps! 

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  • Account Closed
    Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    6y
    You and literally everyone else, sorry to say. I would advise that its ridiculously competitive here now. If its "cheap" there is a reason, so likely in the ghetto or needs a lot of work. I am actually beginning to believe Columbus has a little bubble.

    There are a lot of good turnkey markets like Cleveland, Louisville etc that may be less inflated.
    4Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    6y
    Originally posted by @Josh Madruga:

    Hello BP Community,

    I'm a REI out of Central California, with multiple SFH invested locally. I am looking to make the jump to start investing out of state I've been researching a few different cities across the country and Columbus, Ohio keeps popping up. The prices look pretty good from afar, and the other demographics look pretty solid (job growth, population growth, crime decrease, etc)

    Is anyone out there buying and holding in Columbus?? Just wanted to know if the quality of homes that are listed online are good investments, or is everything that's cheap in really rough neighborhoods..  What neighborhoods/suburbs are you having success in, and are you buying single family homes, or multi family. Thanks guys!

    Hi Josh, here's what I would say. With 30k+ homes in columbus a year (single fam), there's definilty a lot more opportunities that way. I just put a single family under contract for a client, the median home in the area is 160k and this is remodeled at 135k and the comps show it's at like 180k value. just an investor that had to unload it quickly. He'll rent it out and easily have appreciation. It's in hungarian village and appreciation year over year there was 10% plus. I think buying SFRs gives you more appreciation potential and less competition. Areas like 43224, 43207, 43123, 43211 (North of Hudson), 43219 (certain areas), 43206, 43222 among others are some of areas that SFR buyers and investors are investing.

    In terms of multifamily, I would agree that it's competitive. But if you are moving quickly, there are still plenty of deals to be had all over the city. As of today there are 158 properties for sale active in the columbus ohio multiple listing service. About 4 new listings per day come on the market for multifamily. so not a lot to look through each day if you are serious. 959 properties on the multifamily side closed in the last 12 months in central ohio or about 2-3 per day. Same zips as above are some of the great ones to keep an eye out in. For multifamily i'd focus on stuff newer than 1950 so your maintenance costs are lower. Something i've learned from rehabbing 25+ properties. 

    There are a lot of great meetups for investors to go to if you want to network and there are guys doing deals every month. So yes, plenty of buying and holding going on :) Welcome to the forums and I hope this helps! 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    7Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Josh Madruga I am a buy and hold investor here in Columbus, Ohio. I try to invest as close to the city as possible. I know a lot of investors that do extremely well out in the suburbs (Reynoldsburg, Pickerington, Westerville). It just depends what your investment strategy. I enjoy going to my favorite dive bar, Ledos, and pointing across the street at my 4 unit, and telling all of my buddies I own it.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Clifton Young
    Rental Property Investor · NE OHIO · Member since 2018 · 22 posts · 21 votes
    6y

    There are a lot of suburbs of Columbus that are good markets (many listed zip codes above). Finding a "good deal" now in columbus means you have to be a little creative. I know some investors that have been adding bedrooms/bathrooms to houses, Opening floor space, doing short term rentals, etc. 

    1Reply
  • Justin Campbell
    Flipper/Rehabber · Columbus OH & Los Angeles, CA · Member since 2009 · 50 posts · 48 votes
    6y

    Hi @Josh Madruga The Columbus market is definitely more competitive than I've ever seen it. I've been buying and wholesaling SFH's and a few multi units since 2007, and I can say that certain markets where there were once opportunity is few and far between now(Clintonville,Vic Village, Harrison West,etc) but there are still so many areas that have opportunity for cash flow and appreciation depending on your strategy. As long as you have some people that are active and have their eyes on the streets in Columbus, you can find some deals. Good luck mate!

    0Reply
  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    6y

    @Justin Campbell I was talking with an investor the other day who said.. I like Ohio.. the deals are there, but it is a dog eat dog market and it's hard to know who to trust! I think he was feeling a bit of that competition. 

    0Reply
  • Peter Lohmann
    Property Manager · Columbus, OH · Member since 2012 · 309 posts · 275 votes
    6y

    Guys, Columbus is tapped out. Go back through the posting history for columbus ohio. There's a new investor moving into the space literally every business day for the last 5 years. Cap rates are severely compressed. Anything that hits the public listing sites is junk. Time to find a new strategy/market. We're at the peak.

    3Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Peter Lohmann I know some investors that have the same mentality as you do. They were in the Columbus, Ohio market before the big tech corporations and other major brands moved into the city. They cannot justify today's 2-6 cap rates in German Village because they got 10-15 caps 10 years ago. They have given up on the Columbus market and make discouraging remarks like the one you just made.

    I prefer to look at the glass as half full. I think it makes sense that prices are higher than they were ever before. My opinion - We are not at a peak but just starting our journey up Mount Everest.

    My broker and business partner @Account Closed

    Disclaimer - I am biased as my day job counts on property sales in the Columbus, Ohio market but I do put my money where my mouth is. I just entered into contract on 10 units in Southern Orchards earlier this week.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y
    Originally posted by @Remington Lyman:

    @Peter Lohmann I know some investors that have the same mentality as you do. They were in the Columbus, Ohio market before the big tech corporations and other major brands moved into the city. They cannot justify today's 2-6 cap rates in German Village because they got 10-15 caps 10 years ago. They have given up on the Columbus market and make discouraging remarks like the one you just made.

    I prefer to look at the glass as half full. I think it makes sense that prices are higher than they were ever before. My opinion - We are not at a peak but just starting our journey up Mount Everest.

    My broker and business partner @Account Closed

    Disclaimer - I am biased as my day job counts on property sales in the Columbus, Ohio market but I do put my money where my mouth is. I just entered into contract on 10 units in Southern Orchards earlier this week.

     South Orchards.. oh my.. I was at Subway on Lockbourne yesterday morning and there was a drug deal made in front of my eyes with one of the workers.. I also heard there was a homicide on Wednesday I think it was as I saw multiple cruisers driving around..

    Once you cross Parsons it's like a different world..

    It's sad how these out of town investors driving prices for junk..

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Hai Loc My broker and I are taking that deal down. No out-of-state money involved besides the bank's.

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    0Reply
  • Account Closed
    Real Estate Broker · Columbus, OH · Member since 2019 · 119 posts · 151 votes
    6y

    @Hai Loc Schumacher Place was just like that several years ago. Things can change pretty quickly.

    1Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y

    That's a good thing.. just need to be patient and hold long term

    2Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y

     You think Hilltop will ever have a chance in our life time? I know they are working on Franklinton right now 

    2Reply
  • Account Closed
    Real Estate Broker · Columbus, OH · Member since 2019 · 119 posts · 151 votes
    6y

    @Hai Loc I feel like they try to make efforts to improve Hilltop, but it comes with mixed results. In my personal opinion, I would be shocked to see it turn in our lifetime, but in fairness, I'm sure the generation before us said the same thing about Franklinton lol.

    2Reply
  • Joshua Myers
    Rental Property Investor · Columbus, OH · Member since 2014 · 148 posts · 177 votes
    6y

    @Hai Loc Southern Orchards is turning faster than anything I've ever seen. 2 years ago when I was working down there it wasn't uncommon to see a guy walking in the middle of street with a gun. It was hard getting good contractors to do anything in the area. Now my 70 year old mother in law is fine going down there. Yes, it's street by street in some places. Still it's closer to being the new Old Towne East or Merrion Village than a lot of people think. 


    The question isn't what happens on the other side of Parsons. It's how far east and south the renovation takes told, and if there's a hard boundary. German Village had a natural boundary at Parson, and Bexley has something similar with Alum Creek.

    1Reply
  • Joshua Myers
    Rental Property Investor · Columbus, OH · Member since 2014 · 148 posts · 177 votes
    6y

    @Remington Lyman and @Account Closed over time it sounds like you guys are pretty excited about Franklinton. I've checked it out more than once, and looked at a few properties. I'm just not seeing the potential like everyone else. Obviously things are changing, but I'm not seeing the bargains like we had in Southern Orchards over the past few years. Are you guys finding deals now, and what's your main investment thesis down there?

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Joshua Myers I found 15 Rodgers Ave Columbus, OH 43222 in Franklinton. @Account Closed and I are rehabbing it. I have helped two separate clients purchase doubles in the area. There are not a lot of opportunities but there are some. We are bullish on the Franklinton because of all the investment going into it. I also have most of the Zillow Premier Agent market share for the 43222 zip code. There are a lot of young professionals that are first time home buyers purchasing single-family homes in the $200,000-$300,000 range there. That makes me excited. 

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    0Reply
  • Raul Velazquez Jr
    Columbus, OH · Member since 2018 · 91 posts · 54 votes
    6y

    @Josh Madruga @Trent Ecklar

    2Reply
  • Trent Ecklar
    Real Estate Agent · Columbus, OH · Member since 2017 · 203 posts · 170 votes
    6y

    @Raul Velazquez Jr

    Thank you so much

    2Reply
  • Account Closed
    Real Estate Broker · Columbus, OH · Member since 2019 · 119 posts · 151 votes
    6y

    @Joshua Myers I would be selective with Franklinton. It is a large geographical area and I personally am not bullish on all parts. I tend to buy where stable industry plants roots. The purchase we made is about 4 tenths of a mile from the new CoverMyMeds HQ. In addition, large companies are now being approved to spend heavily in that area. But again, I would be selective and stay as close to Mt. Carmel and CMM HQ as possible. 

    1Reply
  • Account Closed
    Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    6y

    480 S Princeton is for sale! Technically Franklinton I think? Possibly the most cursed mutifamily listing I am aware of, now that all those abandoned 4 plexes on Barnett Rd got flipped.

    0Reply
  • Eddie T.
    Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
    6y

    @Josh Madruga how many properties are you looking to purchase?

    0Reply
  • Josh Madruga
    OP
    Rental Property Investor · Modesto, CA · Member since 2019 · 11 posts · 7 votes
    6y

    @Eddie T. Honestly don’t have a cap.. Long term, as many as we can. I am still in the process of doing research and what market is right for me for starting out out of state.

    0Reply
  • Account Closed
    Specialist · Cleveland, OH · Member since 2018 · 9 posts · 7 votes
    6y

    @Nicky Reader

    Cleveland is the best rental market

    0Reply
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