Some personal takes on research about the Columbus, OH market

8 Replies

I am doing a lot of research on the Columbus, OH market recently and has gone through lots of old posts about this market. The thing that I like about Columbus the most is it is a growing city with a good university. However, I also have a few observations that I do not quite appreciate. I would love to hear from other investors on their takes as well. 

1. It seems to be quite crowded by investors in general, because the price point still looks very enticing for a lot of out-of-state investors (I'm from the Boston area.). Most of the two-family I looked at in those up-and-coming areas are just not well taken care of. A lot of properties are flipped for a quick profit, rather than for its long term values. It is hard to find a good quality turnkey rental. (For example, I wanted to avoid carpets, but most flipped places are with carpets.)

2. In my local market, it is rare to come across off-market deals these days. However, in a seemingly hot market like Columbus, there is not lack of off-market deals. My question is if locals would not snap up those properties, should out of state investors be cautious about those "deals"? 

3. It seems the investment thesis changes quickly at the street level. I wonder whether flying there and walking down neighborhoods myself before I decided to put in an offer is recommended. 

Inventory here in Columbus is very low and you are correct, the proverbial "word" is out. That does not mean there are not deals here for both in and out of state investors. The most important factor still remains, having the right team in place finding and working those deals for you, and then taking care of the property once it is closed. 

If you have someone here in Columbus that you trust to help you in analysis and eyes on properties, you can do very well here. Regarding locals not snapping up deals, it's a free for all. If you have the right team it should not matter. 

You bring up interesting points and I appreciate you opening the discussion!

Columbus is currently a hot market and there are a lot of different variables that make it attractive for both locals and out-of-state investors. There are still plenty of good deals to be found and the for some people there is a lack of them but for others who know how to find them, there is always inventory. I agree with @Jonathan Styer that having the right team in place is essential for investing out of state. @Rachel Feng

Originally posted by @Jonathan Styer :

Inventory here in Columbus is very low and you are correct, the proverbial "word" is out. That does not mean there are not deals here for both in and out of state investors. The most important factor still remains, having the right team in place finding and working those deals for you, and then taking care of the property once it is closed. 

If you have someone here in Columbus that you trust to help you in analysis and eyes on properties, you can do very well here. Regarding locals not snapping up deals, it's a free for all. If you have the right team it should not matter. 

You bring up interesting points and I appreciate you opening the discussion!

 Hi Jonathan,

Thanks for your reply. What I am confused was if locals do not see certain houses as a "deal", why would a out-of-state investor has a better take than that? In a hot market, good off-market deal should be really hard to come by. I'm surprised with the inventory of those "off-market" properties. I do noticed most of them seem to come from not so desirable areas. 

Originally posted by @Brandon Goldsmith :

Columbus is currently a hot market and there are a lot of different variables that make it attractive for both locals and out-of-state investors. There are still plenty of good deals to be found and the for some people there is a lack of them but for others who know how to find them, there is always inventory. I agree with @Jonathan Styer that having the right team in place is essential for investing out of state. @Rachel Feng

 True, there are deals everywhere. But I'm wondering for someone who just ventured into a new out-of-state city, it's probably harder to find those deals. 

Originally posted by @Rachel Feng :
Originally posted by @Jonathan Styer:

Inventory here in Columbus is very low and you are correct, the proverbial "word" is out. That does not mean there are not deals here for both in and out of state investors. The most important factor still remains, having the right team in place finding and working those deals for you, and then taking care of the property once it is closed. 

If you have someone here in Columbus that you trust to help you in analysis and eyes on properties, you can do very well here. Regarding locals not snapping up deals, it's a free for all. If you have the right team it should not matter. 

You bring up interesting points and I appreciate you opening the discussion!

 Hi Jonathan,

Thanks for your reply. What I am confused was if locals do not see certain houses as a "deal", why would a out-of-state investor has a better take than that? In a hot market, good off-market deal should be really hard to come by. I'm surprised with the inventory of those "off-market" properties. I do noticed most of them seem to come from not so desirable areas. 

I guess I'm a little confused by what you mean that locals are turning down deals that OOS investors then have the scrap pile to pick from. When I represent a buyer client, I don't care where they live, I work for them just as hard if they're in state or out so my personal experience I guess does not match what you're describing. 

 

Originally posted by @Brendan M Hornung :

Quick question: How do Colombus and Cleveland compare to one another in regards to MFH or SFR investment properties?

Columbus has more appreciation, but the cash flow is a little tighter than Cleveland. Cleveland has some good neighborhoods but many bad neighborhoods, Columbus is the opposite. I prefer Columbus due to the increasing population

 

Originally posted by @Brendan M Hornung :

Quick question: How do Colombus and Cleveland compare to one another in regards to MFH or SFR investment properties?

 There is less supply of properties in Columbus because there are more owner-occupants. Columbus has a growth job and population growth, which creates more demand.