Looking to invest in Cleveland or Columbus, OH.

[Robert Krzesinski]

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

[Vadim F.]

Quote from @Robert Krzesinski:

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

 what are you trying to achieve, cash flow or appreciation? 

[Robert Krzesinski]

I would like to accomplish both, but leaning more toward cash flow. The appreciation comes with rehab work and I work W2, so not much time to spare unless numbers make sense and have a good reno team in place.  

[Vadim F.]

Quote from @Robert Krzesinski:

I would like to accomplish both, but leaning more toward cash flow. The appreciation comes with rehab work and I work W2, so not much time to spare unless numbers make sense and have a good reno team in place.  

Cleveland would be your best bet. While Columbus may have some cash flow, its more of an appreciation area. Also, why you are focusing on STR/MTR and not LTR?

[Brandon Goldsmith]

Cleveland will be better overall for the cashflow but the long term benefits are more in Columbus. MTR could be accomplished in both cities though. @Robert Krzesinski

[Account Closed]

Quote from @Robert Krzesinski:

I would like to accomplish both, but leaning more toward cash flow. The appreciation comes with rehab work and I work W2, so not much time to spare unless numbers make sense and have a good reno team in place.  

Columbus is showing all the right sings for appreciation- rising population, massive employers like OSU, Honda, Nationwide, and Intel, who just invested $20bn (!) into Columbus. Even so, it is a good mix of cash flow and appreciation, with plenty of options are lower entry points. I'd be happy to connect and discuss this with you.

[Joshua Janus]

Quote from @Robert Krzesinski:

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

North Linden, South of Main, Vassor Village, Woodland Park, MT Vernon, Milo-Grogan, Franklinton, Merrion Village, Hungarian Village, Southern Orchards, Driving Park, Olde Towne East, Franklin Park, King Lincoln, Old Oaks, Livingston Park are all but not limited to some areas in Columbus, Ohio I think will gentrify quickly and make for great long term buy and holds.

[Robert Krzesinski]

With me being new to real estate, LTR seems to be more challenging, and the cash flow might be somewhat lower. However, with that being said, I am open to all investment strategies. Just need guidance on which option is best for my situation, current market, and location. Thanks for the input.

[Bonnie Low]

If you're looking to start with an MTR you can, of course, invest outside your area but it's much easier to get started in this niche if you can be hands on with a property in your own backyard. You know the area like none other so you can really dial down into the neighborhoods that are going to be suitable for your prospective guests and you can handle turnovers yourself. I really encourage you to manage your own MTR, even if just for a little while, so you really get a feel for what all is involved. Everything from marketing to vetting guests to lease ups to turnovers. Doing so gives you a very good feel for the systems you'll want to have in place, the time commitment and the actual costs. It's also great practice before jumping into the STR space. Very similar responsibilities - just faster pace and higher turnover.

[Robert Krzesinski]

Bonnie, 

Thank you for your insight! I started talking to some good real estate agents locally, and see what I can find. Any resources that would be helpful for MTR?

[Vadim F.]

Quote from @Robert Krzesinski:

With me being new to real estate, LTR seems to be more challenging, and the cash flow might be somewhat lower. However, with that being said, I am open to all investment strategies. Just need guidance on which option is best for my situation, current market, and location. Thanks for the input.

. We can all provide our opinions, but Only you can know what the best option is for you. In regard to STR/MTR my opinion is those would be very challenging to manage OOS. Also, if you were to hire a PM, the fee they charge is higher due to more turnover so your cash flow will not be as great. LTR OOS is much less risk, and depending on where you invest. If you were to get a low income tenant who is on sec8, your rent would be guaranteed by the govt (if that is something you were looking to get into).

[Bonnie Low]

Quote from @Robert Krzesinski:

Bonnie, 

Thank you for your insight! I started talking to some good real estate agents locally, and see what I can find. Any resources that would be helpful for MTR?

 If you want to feel out the demand for MTR the most common place to start is on Furnished Finder. Enter your city, check out their dashboard stats to see what kind of search traffic they're getting on the website then start looking at available properties to get a feel for the number of units in the market, the condition and amenities and how booked their calendars are (note: the highest performing properties may be booked 3 months out so set your search parameters at least 3 months ahead). Furnished Finder isn't the only resource, but it's probably the most well known for use by travel medical professionals and more and more often by others looking for furnished rentals. There are also some MTR social media pages that will help connect you with other resources who may have information about your area, contacts you'll need like cleaners and maintenance people. It's a good place to start.

[Robert Krzesinski]

Thank you Bonnie for the beneficial information. It can be overwhelming to get started, but having a BP community is priceless! 

[Jeremy Dyer]

Would you be open to a passive investment (limited partner) in the Columbus market?

[Anthony L Amos Jr]

Quote from @Robert Krzesinski:

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 fortune 500 companies, over +25% population change since 2000, 2016 smart city challenge award winner gaining 50 million dollars in funding from the government ( https://www.columbus.gov/smartcity/), Intel is spending 20 Billion dollars to build two semiconductor plants, and many many more great things presently and coming in the future. Needless to say Columbus will remain a strong real estate market for the foreseeable future.

[Jimmy Lieu]

Quote from @Robert Krzesinski:

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

Hi Robert, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just this month, I’ve gotten under contract for my clients for multiple 20%+ cash on cash rental properties so there’s definitely tons of opportunity here. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

[Aj Parikh]

Hi Robert, Midwest markets are some of the best markets to get a cash flow heavy rental property. The appreciation play is not that great but to have a good buy and hold rental that produces decent cash flow is a good strategy in the markets like Indianapolis, Kansas City, Cleveland or Detroit. I have used the out of state investing strategy and purchased a few properties in Cleveland and built a portfolio for myself while having a W2 job. Feel free to reach out and I can try to add value if you are stuck.

[James Wise]

Quote from @Robert Krzesinski:

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

 Columbus is going to be more expensive, but offer you a better long term outlook as the job market and population trends are better.

Cleveland is going to be way more affordable and allow you to buy more properties than you could in Columbus. Price to rent ratio in Cleveland will be better but you won't see as positive long term population trends. Job market isn't as good either. 

[Sloane Kraftsow]

Hi Robert,

Welcome to the BP community! This site is an incredible platform that has numerous resources so definitely take advantage of it all. I'd love to get you started with your first rental property.

Would love to connect.

[Bob Stevens]

Quote from @Robert Krzesinski:

Hi,

I am new to the BP community, and looking to invest in multifamily rentals, possibly STR or MTR. I don't know where to start, I have some accessible capital, but with the terms the bank is giving me, I am not sure that is the route I want to take. Any help with finding the right location to invest in?

 I see cash buyers investing in the Cleveland markets and getting 10% or better net caps. Its all about knowledge and your team . I just picked up 9 more doors over the last couple weeks. All with 20% net caps,,,,,,

Good luck