Ohio newbie looking to buy and hold first property!

New Member Introductions
11yFollow

Ohio newbie looking to buy and hold first property!

Jeff Cashell
Dublin, OH · Member since 2015 · 11 posts · 0 votes
Hello all! New to real estate investing in Columbus Ohio area and also new to BP. This site is great! Looking to make my first deal on a single family buy and hold. Having trouble pulling the trigger. What's a reasonable cash flow I should expect on first deal? Any advice?
0Reply
20 views

Most Popular Reply

Brian Hayes
Specialist · Powell, OH · Member since 2013 · 86 posts · 23 votes
11y

@Jeff Cashell Welcomed to BP...Too bad you weren't at the BP meetup the past Friday, we will be back there this Friday 12-2 @ Dublin Yogis! You could've asked that question live and gotten some great perspective from a few good folks there!

I totally agree with @John Horner and @Richelle T. But I do think people calculate these things differently... that's why I thinks @Jeremy Tillotson hit it right on the head with the gross rents. If you are looking at your return from your gross rents you can determine which other factors to include/disclude from your calculation of roi. For example you could be happy with $0.00 to $100 per door in a neighborhood that boasts consistent appreciation but you would be quickly defeated with that same $100/door strategy in a neighborhood where your tenant is just one flat tire away from not paying rent. No one is a better judge than you of what your comfortability is when it come to specific neighborhood, you need to get out there and drive on the street that you will own a home. Drive around the neighborhood when school lets out, when its dark, when is nice, on a holiday... etc. Check facebook or the paper for community events or for church functions and civic associations. If you dont have time for that you will need someone who is really familiar with you and your risk tolerance and a good knowledge of the Columbus neighborhoods.

Hope to see you on one of these Fridays!

1Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Jeremy Tillotson
    Investor · Fort Wayne, IN · Member since 2014 · 1k+ posts · 515 votes
    11y

    @Jeff Cashell welcome to BP!

    You can start here on BP  https://www.biggerpockets.com/real-estate-investin...

    Many people on BP expect 1-2% rent per month, so 100k house 1-2k per month in gross rent, just a general rule, in Columbus I would assume you can get 2% in decent neighborhoods. I am over In Indiana but grew up in NW ohio. Best of Luck.

    0Reply
  • John HornerPro Member
    Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
    11y
    Originally posted by @Jeff Cashell:

    Hello all! New to real estate investing in Columbus Ohio area and also new to BP. This site is great! Looking to make my first deal on a single family buy and hold. Having trouble pulling the trigger. What's a reasonable cash flow I should expect on first deal? Any advice?

     Welcome!  Speaking to what Jeremy said, 2% in a B neighborhood will be hard to find but possible. In a C neighborhood it's a piece of cake.

    0Reply
  • David Rupp
    Rental Property Investor · Columbus, OH · Member since 2013 · 117 posts · 16 votes
    11y

    @Jeff Cashell Welcome to the site. I'm not experienced with buy and holds, so I would suggest listening to the BP podcast, if you haven't already. They have hade some awesome guests on there talking about buy and holds. 

    0Reply
  • Jeff Cashell
    OP
    Dublin, OH · Member since 2015 · 11 posts · 0 votes
    11y

    Thanks for the feedback and the resources.  One question in response to @John Horner how do you determine whether a neighborhood is A, B, or C?

    0Reply
  • Richelle T.
    Rental Property Investor · Columbus, OH · Member since 2014 · 340 posts · 111 votes
    11y

    @Jeff Cashell The property classes are subjective, especially class B. I find it easier to outline the boundaries. Assuming there are only 3 categories:

    Class A would be Upper Arlington, Dublin, etc - extremely desirable by all

    Class C would be the Bottoms, South Linden, Driving Park, etc - undesirable, lots of crime

    Class B is somewhere in the middle. This would be good, working class neighborhood with low/moderate crime. Again, it's extremely subjective.

    0Reply
  • Brian Hayes
    Specialist · Powell, OH · Member since 2013 · 86 posts · 23 votes
    11y

    @Jeff Cashell Welcomed to BP...Too bad you weren't at the BP meetup the past Friday, we will be back there this Friday 12-2 @ Dublin Yogis! You could've asked that question live and gotten some great perspective from a few good folks there!

    I totally agree with @John Horner and @Richelle T. But I do think people calculate these things differently... that's why I thinks @Jeremy Tillotson hit it right on the head with the gross rents. If you are looking at your return from your gross rents you can determine which other factors to include/disclude from your calculation of roi. For example you could be happy with $0.00 to $100 per door in a neighborhood that boasts consistent appreciation but you would be quickly defeated with that same $100/door strategy in a neighborhood where your tenant is just one flat tire away from not paying rent. No one is a better judge than you of what your comfortability is when it come to specific neighborhood, you need to get out there and drive on the street that you will own a home. Drive around the neighborhood when school lets out, when its dark, when is nice, on a holiday... etc. Check facebook or the paper for community events or for church functions and civic associations. If you dont have time for that you will need someone who is really familiar with you and your risk tolerance and a good knowledge of the Columbus neighborhoods.

    Hope to see you on one of these Fridays!

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Jeff Cashell:

    Hello all! New to real estate investing in Columbus Ohio area and also new to BP. This site is great! Looking to make my first deal on a single family buy and hold. Having trouble pulling the trigger. What's a reasonable cash flow I should expect on first deal? Any advice?

    Hi Jeff,

    Because you are based in Ohio, I would suggest buying undervalued properties, fixing them up and holding.

    Ohio is a very undervalued market and will be for as long as the media keeps pumping "high" unemployment and "declining" population.

    Feel free to check out a blog I write for Bigger Pockets a while back about the different asset classes.

    http://www.biggerpockets.com/renewsblog/2014/06/28/abcs-real-estate-asset-classes/

    Thanks and I hope you find my comment useful.

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
    WebsiteView Page
    0Reply
  • Corey Liepelt
    Flipper/Rehabber · Dublin, OH · Member since 2013 · 134 posts · 40 votes
    11y

    Welcome to BP, @Jeff Cashell. Like you, I am based in Dublin. I would recommend meeting some local investors, as that's where you are going to learn the neighborhoods the best. Brian's meetup on Friday would be a great place to start. I must also recommend COREE, my favorite of the local REIA groups in central Ohio. We meet on the first Tuesday of every month in Polaris, and there is a wide range of experience levels and strategies represented by the investors there.

    0Reply
  • Timothy Murphy III
    Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
    11y

    @Jeff Cashell 

    Welcome to the forums.

    Tim

    0Reply
  • Jeff Cashell
    OP
    Dublin, OH · Member since 2015 · 11 posts · 0 votes
    11y

    Thank you!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free