What to look for in a property.

Question

I have an interest in buying my first property in Cincinnati and I am wondering what to look for in my first property to buy and hold. I have a few houses picked-out, but I'm sure that they aren't the best deals ever. Should I try to find a duplex under 150k and go through the bank or should I go through a private lender?

Additionally, how do you find the right neighborhood? Go buy the worst house in the best neighborhood?

Thanks all!

Additionally, how do you find the right neighborhood? Go buy the worst house in the best neighborhood?

Thanks all!

Evan Polaski · Answer

@Randy Hucker, like most markets Cincinnati is all about not just the neighborhood, but the street.  In general, Scott hits on some good neighborhoods (in fact I live in Pleasant Ridge, and most of my flips have been in PR), but there are a couple streets, or even sections of streets, you couldn't give me a house on, and this holds true in every neighborhood in the city.  The good thing is, you are a local that can drive the properties very easily.

I ask myself a few questions when looking at properties: would I live here?  Would I send my wife here in the middle of the night?  If the answer is yes, you are in a good spot.  If you don't totally trust it, drive by the house a few times, during the day, at night, in the evening, on the weekend.  This will also give you a good sense of what area you are buying in.  Are all the windows covered even when it is nice and sunny out?  Are there a bunch of people lurking around at all hours?  Are kids out playing?  There is no right or wrong answers, it is simply what you are looking for.

Scott Starrett · Answer

To me, the main “path of progress” opportunities in Cincinnati are from Mt Adams up to Kenwood (along Montgomery Road) —

• Walnut Hills
• East Walnut Hills
• Evanston
• Norwood
• Pleasant Ridge
• Silverton
• Deer Park

Also improving neighborhoods due to city planning advantages/incentives:

• Madisonville due to its adjacency to Hyde Park/Oakley, Indian Hill & Mariemont
• 
• OTR & West End

Scott Starrett · Answer

@Randy Hucker

Definitely take your time to find a property, since values will most likely be coming down some this year as the economy slows. It can’t be an economic “squeeze” for you to make the numbers work today, because a  real, actual squeeze will most likely come in the next 12-18 months. (eg slightly lower rents, lower appraised values, reduced lending/capital availability). Just something to think about as the economy turns this year.

Randy Hucker · Answer

That's where I've been looking up to this point. I have a few selected to potentially invest in, but I'm worried about pulling the trigger prematurely and then underestimating my repair costs and completely bottoming out. I'll continue looking!

Randy Hucker · Answer

Yeah, that has been my consensus. I've been looking for multifamilies near me by myself for a while now, maybe its time to turn to a realtor that can show me better properties!

Andrew Syrios · Answer

The answer really depends on what you're looking for. I would recommend starting with How to Invest in Real Estate by Josh and Brandon. You can find it here: https://www.biggerpockets.com/store/how-to-invest-in-real-estate-ultimate

Zachary Johnson · Answer

The answer to your questions are different for everybody. Investors have different preferences and are at different points in their life. I prefer cash flow heavy singles and 1-4 units in C neighborhoods. If I was in my 40's or 50's I'm sure my strategy would be much different. I wouldn't want all of the headaches so maybe I transition to a better neighborhoods and do 15 year notes instead of 30 and focus more on principle pay down. I would highly recommend finding a realtor in your area who works with investment properties and can answer specific questions. Make sure they work with investors! Realtors who sell "dream homes" typically don't know anything about investment properties. Hope this helps and good luck!

What to look for in a property.

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