Investing in Ohio or another state?

23 Replies

How is the real estate investing market in Ohio?

I was looking to possibly invest in a rental property there.

I also just heard of a lot of newbie real estate investor traps going on there and would like some advice on maybe who or who not to work with?

Also, what other states would you recommend investing in (if any)?

I'm looking to buy a single family home or duplex around $50k that I can fix up for around $10k-20k, refinance, and make a rental cash flow profit along with appreciation over time. Basically using the brrrr process.

Thanks for all your guys' help! <3

@Katja Jeschke I love columbus, ohio.  The market is hot because of population growth and lack of housing inventory.  Here is link to projected population growth by 2050 and how Columbus plans to handle it.  

What newbie investor traps have you heard about in Columbus, Ohio?

In Columbus 50k is going to get you into a neighborhood that is pretty dicey, I think you can deploy this plan in any Midwest city with a little digging. If you had any questions about the city feel free to PM I have had great success with small multifamily thus far. 

Katja,

A blanket statement like "Ohio is a great/bad place to invest" is dangerous as there are good and bad deals in every state, city and neighborhood. 

What state and city can you have a competitive advantage in? What are your real estate goals? 

Then you can narrow down the area and start looking for deals. 

@Katja Jeschke

I'm with you Katja, I too am wanting to invest in Ohio somewhere. Where are you about in CA if I can ask? I'm planning a trip out there the second week of January next year, cleveland to be exact...maybe we can connect and see what ohio has to offer??

Originally posted by @Katja Jeschke :

How is the real estate investing market in Ohio?

I was looking to possibly invest in a rental property there.

I also just heard of a lot of newbie real estate investor traps going on there and would like some advice on maybe who or who not to work with?

Also, what other states would you recommend investing in (if any)?

I'm looking to buy a single family home or duplex around $50k that I can fix up for around $10k-20k, refinance, and make a rental cash flow profit along with appreciation over time. Basically using the brrrr process.

Thanks for all your guys' help! <3

At that price in Columbus you aren't going to get very far, not too much inventory for SFH at 50k or under and the ones that are at that price generally need more than 10-20k worth of work. There are some out there though, but you're not going to find a Duplex at that price that isn't gutted.

If looking at columbus in Ohio I would raise your capital up to look to purchase under 100k for SFH and BRRRR in a c or c+ class neighborhood for around 1%. Great appreciation here in the sub 200k price for SFH.

@Katja Jeschke

When I first started out, I was buying in California (2012-2016). Like you, I decided to look out of state thereafter because the numbers were looking rough for anything local.

I decided upon Cleveland Ohio as my focus, but to be honest it could have easily been 100 other cities. I liked Cleveland because of the medically focused industries which are generally well paying and stable. The price points were attractive as well because I could splash around with multiple properties for the price of half of a property in Ca and still earn 15% or more cash on cash.

I have learned SO many lessons in that time, I could probably write a book on it lol. I'll be happy to chat sometime if you are interested, but a few key points to make that I learned:

- Focus on building your team first. Without these people, you have nothing. Most important is your PM as they will make or break you as I found out the hard way with 3 different companies. Contractor is next, then everyone else (handymen, CPA, lawyer, property tax lawyer, etc.). Also be sure to vet them with references THEY DID NOT GIVE YOU. Ask their reference for someone who also works with them to get someone they didn't want to give you as their reference. You are more likely to avoid fake references.

- Trust but verify!! Find good people to help you out, but look over every detail to verify. I like to have unrelated people looking at the same projects for me. If my PM says the roof needs repair, I want a contractor that doesn't know the PM to verify it. If my contractor says he's 50% done, I want my PM to check in on it to make sure. If your PM and contractor are buddy buddy, they could easily put you together (rip you off) and tell you what the other is saying. If you have an unrelated 3rd party helping you, the odds of them both telling you the same lie is basically zero.

- Watch. Every. Single. Penny. That. Leaves. Your. Pocket. You should know if an invoice is off by a single penny from what your bank statement shows. It's so key to know what's going on with your business to the finest detail so that you can spot problems before they become massive. And let me tell you, small problems compound into massive, bankruptcy inducing problems very quickly when you are not local. I know from experience how painful this is, so please do yourself a favor and learn excel, QuickBooks, notion, freshbooks, anything that you can use consistently to get a precise view of your businesses income and expenses on at least a weekly basis, if not daily.

- Know the market you are looking into better than anyone you are going to work with. This sucks, it's a grind, tedious, kills the fun of looking at property online, but it's very important in my opinion. I looked at the market every day for over a year before I bought my first, but I knew damn well what it was worth when I pulled the trigger and made a handsome profit when I sold a few years later (even after losing money due to mistakes). My strategy to learn was to look at one or two properties each day in a specific neighborhood, look at sold properties for comps and input this into a spreadsheet. As time goes by, you can guess what a property is worth before you do the work and then see how close you get. I also like to follow properties for sale and see what they do (flip, rent, etc). You can identify a good deal and see what the person who bought it did with it and compare to what you estimated it to be.

Like I said I could probably go on for hundreds of pages, mostly me making $#&$ ups and learning lessons lol. Feel free to PM me if you have any questions or just want to chat in general about investing as I'll be happy to share what I've learned. Best of luck!!

Hi @Katja Jeschke , I would agree that $50K won't get you far in Columbus, OH but I would check out Cleveland and Cincinnati. I saw the same post, so sad to hear, I would spend a good amount of time looking at references, doing due diligence, etc for your CORE 4! 

Originally posted by @Katja Jeschke :

How is the real estate investing market in Ohio?

I was looking to possibly invest in a rental property there.

I also just heard of a lot of newbie real estate investor traps going on there and would like some advice on maybe who or who not to work with?

Also, what other states would you recommend investing in (if any)?

I'm looking to buy a single family home or duplex around $50k that I can fix up for around $10k-20k, refinance, and make a rental cash flow profit along with appreciation over time. Basically using the brrrr process.

Thanks for all your guys' help! <3

 Great to hear your interested in Ohio. Ive been investing here in Columbus for a couple of years and its turned out great so far, killer cash flow and very fast appreciation. With 50k you could buy something, you'll be looking in the Hilltop and Linden areas which are C areas though