Where in OH are you investing and Why?

96 Replies

Hello CA BP members!

I am new to REI and joined BP several months ago. We live and Turlock and are looking for buy and hold multi family opportunities for cash flow. Unfortunately our area will not support cash flowing properties (at least ones listed on the MLS). I have looked at other cities up to 2 hours away and it looks like the same story to me. Hard to cash flow even with 25% down. This has led me to look out of state, something I would not have thought about even 2 months ago. Just finished @Brandon Turner  book on rental property investing and am working through @David Greene book on Long distance investing.

I am looking at properties in OH due to spending about 1.5 months there in 2012. I liked my time there and enjoyed the state. Wanted to know for those of you investing in OH where are you investing? Cleveland, Columbus, Cincinnati? Any suburbs of these I should be looking at? Looking for $200 per door cash flow if possible. Goal is to fly out this year and meet people and put together a team with an agent, PM, and loan officer. Any recommendations would be appreciated! Hoping to own 10 units by years end if possible!

If you are nearby I would love to meet with you and discuss what you have learned about OH.

Thanks!

Originally posted by @Kevin Moules :

Hello CA BP members!

I am new to REI and joined BP several months ago. We live and Turlock and are looking for buy and hold multi family opportunities for cash flow. Unfortunately our area will not support cash flowing properties (at least ones listed on the MLS). I have looked at other cities up to 2 hours away and it looks like the same story to me. Hard to cash flow even with 25% down. This has led me to look out of state, something I would not have thought about even 2 months ago. Just finished @Brandon Turner  book on rental property investing and am working through @David Greene book on Long distance investing.

I am looking at properties in OH due to spending about 1.5 months there in 2012. I liked my time there and enjoyed the state. Wanted to know for those of you investing in OH where are you investing? Cleveland, Columbus, Cincinnati? Any suburbs of these I should be looking at? Looking for $200 per door cash flow if possible. Goal is to fly out this year and meet people and put together a team with an agent, PM, and loan officer. Any recommendations would be appreciated! Hoping to own 10 units by years end if possible!

If you are nearby I would love to meet with you and discuss what you have learned about OH.

Thanks!

 Cleveland, 100%, I am pretty biased as I live here, but the redevelopment in the area is amazing right now! You also have the state's largest employer, The Cleveland Clinic, based here. Not to mention other large companies like Progressive, Sherwin-Willians, etc. There is so much going on! Amazon is also moving in 2 very large distribution centers on the Eastside so they took the plunge!

Originally posted by @Kevin Moules :

Hello CA BP members!

I am new to REI and joined BP several months ago. We live and Turlock and are looking for buy and hold multi family opportunities for cash flow. Unfortunately our area will not support cash flowing properties (at least ones listed on the MLS). I have looked at other cities up to 2 hours away and it looks like the same story to me. Hard to cash flow even with 25% down. This has led me to look out of state, something I would not have thought about even 2 months ago. Just finished @Brandon Turner  book on rental property investing and am working through @David Greene book on Long distance investing.

I am looking at properties in OH due to spending about 1.5 months there in 2012. I liked my time there and enjoyed the state. Wanted to know for those of you investing in OH where are you investing? Cleveland, Columbus, Cincinnati? Any suburbs of these I should be looking at? Looking for $200 per door cash flow if possible. Goal is to fly out this year and meet people and put together a team with an agent, PM, and loan officer. Any recommendations would be appreciated! Hoping to own 10 units by years end if possible!

If you are nearby I would love to meet with you and discuss what you have learned about OH.

Thanks!

I operate in the Cleveland market. I have never been in the business of talking folks into or out of Cleveland as opposed to any other market. 

  • I am biased.
  • Too many people already ready to invest in Cleveland to waste time talking someone into it.

So those two points mentioned I have no opinion on if Cleveland is better for you than Columbus or Cincinnati. However I wrote The Ultimate Guide to Grading Cleveland Neighborhoods to give some solid background info on the Cleveland market to help you (& others) make that decision for yourself(s). 

@Kevin Moules

First thing first. Get yourself preapproved with a lender my friend.

Admittedly im biased. Live in CA. Invest in Cleveland. Working right now on a transaction for a triplex with an agent named Nick Varner from Holton Wise.

They also do property management. Flew out amd met with them last year.... saw properties, saw the Holton Wise office.  Good people to know if you want to invest in Cleveland.

Thank you all for then input. I figured I would have had more CA response but first posts were from Cleveland folks. I was initially looking in Columbus area but the more I read and talk to folks the more I am leaning toward Cleveland and surrounding areas.

@Tom Ott I see you are an agent in the area. Looks like we may have to connect when I head out that way. Do you only provide turnkey deals or do you help investors find properties as well?

@James Wise Thanks for the info! I will be studying that map from now on to get familiar with the area. No need to waste your time talking me into it. You have better things to do I am sure! Thanks for the map!

@Brian Garlington Thanks for the recommendation. As I read Davids book I am learning that PM make or break you. Any lenders you recommend I should be looking at? Is Holton currently managing the properties you have in cleveland?

@Garrett Bailey That is awesome, definitely not going to make that in CA! Cinci is also in my mind. 

Thanks!

@Kevin Moules great question I am almost at the exact same point in my journey and I live just a few hours north of you outside of Sac. 

I have already talked to Tom from Smartland, Mackaylee from USREEB and plan on reaching out to someone from Holton Wise next. Feel free to message me and we can compare notes.

Are you considering any other markets? I have a few others on my list but all of the OH metro's keep rising to the top of the list is cashflow is your main goal.  I am honestly starting to think those of us who are looking at turnkey are about 18 months late to the party but am hoping there are still some options out there.

@Chris Bodden , my wife is from Yuba city so we are up that way often. I have MLS listings coming from up there but nothing worth while to cash flow.

Regarding other markers, it makes me feel overwhelmed trying to find out where everyone is investing. Since i am just crawling on my adventure I am going to just stick to OH. I am even having a hard time deciding between the 3 main markets in that state! As mentioned I am leaning toward Cleveland area. 

On your turnkey comment, were you referring to a turnkey company or just properties that are ready to have renters move in with minimal work? I am not interested in true Turnleys at the moment. Is there a reason why you are possibly looking at these?

I do not think we are late, I just keep looking at prices there are can buy 6-8 units for the price of a duplex in my town. I keep learning cash flow is king and my goal would be 250 per door. 

 Who is USREEB?

@Kevin Moules , Welcome to BP and the RE investment world! We have a ton of out-of-state investors buying up properties here in Columbus. The market is hot right now and prices are a bit on the higher side compared to even just a year ago. However, there are definitely still deals to be had, especially if you're willing to take on a property in need of renovation. I'd be happy to set up an MLS search for you if you want to start seeing what we have coming available - feel free to message me for more info. Also would be happy to show you around if you make a stop in CBus! I've lived all over the city in the nearly 20 years I've been here and have been an investor since 2014.

Best of luck to you wherever you begin your investment journey! 

Amanda

Hi @Amanda Roderick , thank you for the warm welcome! Right now I think I will hold off in Columbus area and try to focus on Northern OH. However maybe when I head out we can meet and you can show me around to see what is available in that market! Thank you!

Hi, I'm a newbie investor also and I see several responses recommending Cleveland. What are the most desirable neighborhoods (zip codes) of the Cleveland would you all recommend? Thanks.

Wow, I did not think this thread would go on this long! This is the reason I joined BP, so many people doing what you want to do 

@Jerry Pham , I would start with @James Wise investing map of the area. I have not yet had time to sit down and look at this map to study the various zip codes but it looks like a great resource. 

@Charlene McNamara , Congrats!! Hopefully we can follow suit by years end. I will PM you to discuss more details!

Hello @Sergio Avina , I like Chicago! Been there twice, guess I like it because I do not have to  live there :). I will def keep the BP community updated if I get a deal. Thanks!

Originally posted by @Kevin Moules :

Hi @Amanda Roderick, thank you for the warm welcome! Right now I think I will hold off in Columbus area and try to focus on Northern OH. However maybe when I head out we can meet and you can show me around to see what is available in that market! Thank you!

 Sounds good, I'll be here when you're ready! :) 

Originally posted by @Kevin Moules :

  Looking for $200 per door cash flow if possible. 

Hi Kevin;

I'm curious, How much do you plan on spending per unit to fetch that $200 per door? I'm assuming that is $200 after all expenses including mortgage?

I'm a former Californian.

DL

I have acquired 7 homes in cleveland over last 18 months. i have 1 in parma, 1 in old brooklyn, 3 in 44135 and 2 in 44144

there was not much of a cashflow when i had turnover on a few of them but since then things have stablized and i got close to 20 % irr over last year. I focus on irr rather than cf per door. i get 100 per door free cf after capex reserve on 15 yr mortgages. paying off early so i can move to bigger things 5 yr from now is more important to me.

i now work with @boudiab , jad as he is ready to check the homr b4 making an offer. other agents try to get you to buy without taking the time to see it and estimate rehab costs. 

@Charlene McNamara , congratulations on making the out of state leap. Depending on where you bought in the NE Ohio area, you may find the following link useful:

https://www.biggerpockets.com/forums/731/topics/485533-cleveland-sfr-water-and-sewer-bills

(It is not just about water and sewer bills.)

I invest in multiple markets (Chicago, Cleveland and Australia) and thou it may seem bias I have seen the entry price of a home compared to the rents I'm able to attain you CAN NOT BEAT. 

Prices are much lower than other cities so someone with less capital is able to invest in the Real Estate Market. Started with $77,000 and I now manage a million dollar portfolio in 2.5yrs. Anyone can do what I've done in this market and I was handicapped being an expat banks would not finance me initially 

Hi Kevin & everyone, I'm newer to BP as well but have been absorbing a lot of the podcasts and forums. I reside in California but like Kevin, its too expensive here for me to invest in real estate let alone even buy property for myself. After discovering BP, i really want to lean more heavily into real estate investing (currently own a condo and house in Portland, Oregon but realized i should broaden my search). After scouring various cities across the nation to identify a starting point to really get started, I am leaning towards Cleveland area. I have the same early goal of Kevin of wanting a minimum of $250 cash flow for each unit and then increasing my goals from there. @Federico Gutierrez - that is a pretty impressive story of scaling up that much in 2.5 years.

I too want to start networking and finding realtors, contractors, lenders, and property managers in the area to work with - if anyone has any references or recommendations, please let me know. Thank you!

@Kevin Moules @Sergio Avina @Charlene McNamara - lmk if any of you are also interested to chat since we're all in the same state :)