Smaller pockets hoping to be bigger someday

Smaller pockets hoping to be bigger someday

Columbus, OH · Member since 2018 · 3 posts · 4 votes

Hello! I'm excited to be a part of the BP community. Really looking forward to the journey ahead.

I've got a modest sum of money that I would like to use to get started in real estate investing.  I have studied, and studied more - while there is obviously much more for me to learn, I am ready to start reaching out and networking and talking to people. I know the real learning will come with that first deal.

I moved to Columbus, OH from Portland, OR about a year ago... spent 10 years in Oregon. TBH, i didn't really know anything about Columbus other than OSU is here. Seems like I missed the investment boat by a few years. Sad, considering the same thing happened to me in Portland...had I bought a house there in 2011, i'd be sitting on 300% appreciation. Insane. But that wasn't my goal back then so can't worry about it now.

My goal now is to try do multi-family BRRRR and hold for cash flow. I gather this is everyone's goal so it's a bit crowded. Maybe it's impossible. I would love to hear if anyone has had any success doing this! However, there aren't any 4 families in Columbus, it seems. In fact, of the duplexes I've analyzed in Cbus...the math is not working out. Doesn't mean there aren't any deals, I guess, but the purchase price is too high and rents too low... Maybe I need some help analyzing deals - I could be overly conservative in my numbers but it seems prudent to assume high expenses (10% vacancy, cap ex, prop management). Also, after factoring in rehab costs...I'm not convinced the ARVs are high enough to make BRRRR feasible.

Lastly, I am originally from the St. Louis area and know that city very well. My family is still there so I'm back often, enough that I'm considering it as a place to invest also. That said, I'm considering anywhere within 5-6 hours of St. Louis and central Ohio. I met with a realtor in STL this past weekend, she said she would e-mail me some examples today and I never heard from her. Guess I'm not that big of a priority. Sad.

Thanks all, hope to connect. If you're in Cbus or STL, let's meet up!

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Brandon TurnerPro Member
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
7y

Nice to meet ya, @Christopher Hagan! Welcome to the site! Can't tell ya much about your area, but you've got the right mindset! Just keep looking, find creative ways to find those deals, and then get great at analyzing! Work that process! :) 

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  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    7y

    Nice to meet ya, @Christopher Hagan! Welcome to the site! Can't tell ya much about your area, but you've got the right mindset! Just keep looking, find creative ways to find those deals, and then get great at analyzing! Work that process! :) 

  • None · Member since 2018 · 125 posts · 46 votes
    7y

    @Christopher Hagan welcome to BiggerPockets! I am in a similar situation where I am analyzing multifamily/BRRRR deals and haven't found winner yet, but the BiggerPockets calculators have been a huge help to me in figuring out what is a good deal and what is not! Even when deals come up as negative cash flow, you just have to remember it is way better to know it is a bad deal before you commit, haha! Best of luck to you!

  • Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    7y

    Hello! @Christopher Hagan

    Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

    I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

    First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

    https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp

    The second is a post that will help get you focused with your real estate investing goals:

    https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

    The last one is a post that will help you choose an “investor friendly” real estate agent.

    There are many agents out there, but it’s important to choose the right one.

    https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

    I love answering questions if you have any! Good Luck :)

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Christopher Hagan:

    Hello! I'm excited to be a part of the BP community. Really looking forward to the journey ahead.

    I've got a modest sum of money that I would like to use to get started in real estate investing.  I have studied, and studied more - while there is obviously much more for me to learn, I am ready to start reaching out and networking and talking to people. I know the real learning will come with that first deal.

    I moved to Columbus, OH from Portland, OR about a year ago... spent 10 years in Oregon. TBH, i didn't really know anything about Columbus other than OSU is here. Seems like I missed the investment boat by a few years. Sad, considering the same thing happened to me in Portland...had I bought a house there in 2011, i'd be sitting on 300% appreciation. Insane. But that wasn't my goal back then so can't worry about it now.

    My goal now is to try do multi-family BRRRR and hold for cash flow. I gather this is everyone's goal so it's a bit crowded. Maybe it's impossible. I would love to hear if anyone has had any success doing this! However, there aren't any 4 families in Columbus, it seems. In fact, of the duplexes I've analyzed in Cbus...the math is not working out. Doesn't mean there aren't any deals, I guess, but the purchase price is too high and rents too low... Maybe I need some help analyzing deals - I could be overly conservative in my numbers but it seems prudent to assume high expenses (10% vacancy, cap ex, prop management). Also, after factoring in rehab costs...I'm not convinced the ARVs are high enough to make BRRRR feasible.

    Lastly, I am originally from the St. Louis area and know that city very well. My family is still there so I'm back often, enough that I'm considering it as a place to invest also. That said, I'm considering anywhere within 5-6 hours of St. Louis and central Ohio. I met with a realtor in STL this past weekend, she said she would e-mail me some examples today and I never heard from her. Guess I'm not that big of a priority. Sad.

    Thanks all, hope to connect. If you're in Cbus or STL, let's meet up!

    You just have to look in the right zip codes. I'd be looking in 43206, 43205, 43201, 43211 right now for multifamily. I like 43227 and 43229 as well and 43207 (south side of columbus). My latest BRRR deal is in 43206 where we will be able to pull the majority of our cash out.

  • Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Christopher Hagan

    Whichever areas you decide to invest, I suggest you go down there, meet other investors, RE brokers. Speak with property managers, contractors. So basically network with the locals and start building your team. This process alone will take you much further. By networking you may be able to uncover the opportunities that are not available to others. 

    Best of luck!

  • Columbus, OH · Member since 2018 · 3 posts · 4 votes
    7y

    @Brandon Turner thank you! I listen to your podcasts and read your blog posts, thank you fro contributing so much value to this community.

    @Account Closed thanks! I’m trying to do the networking as you suggest. Just need to find people willing to take the time to talk to me :)

  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    7y

    Welcome @Christopher Hagan Most of the properties we're putting investors into are C+ to B+ class and returning 7-10% pretty consistently...you can get 25% deals in Columbus all day long if you want to assume the risk. The market for listed properties is still pretty competitive right now, so if that is where you are looking you need to stay very active with your searches and also be ready to offer quickly. 

    Realize Multifamily Group11 Review
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  • Columbus, OH · Member since 2018 · 3 posts · 4 votes
    7y

    thanks @Brandon Sturgill that is good to hear! I will check out your website, see what’s what. Definitely want to start networking and get out there. 

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Brandon Sturgill:

    Welcome @Christopher Hagan Most of the properties we're putting investors into are C+ to B+ class and returning 7-10% pretty consistently...you can get 25% deals in Columbus all day long if you want to assume the risk. The market for listed properties is still pretty competitive right now, so if that is where you are looking you need to stay very active with your searches and also be ready to offer quickly. 

     This is true because we are offering same day great deals come up lol 

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