New investor in CA looking for SFHs around Columbus, OH

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New investor in CA looking for SFHs around Columbus, OH

Colin Haag
San Francisco, CA · Member since 2017 · 3 posts · 5 votes

Hi everyone! I've been listening to the podcast and doing some REI reading for the past few years, but I think it's finally time for me to make a move. I'm excited to finally be joining the community!

I lived in Ohio for the first 26 years of my life and got my mechanical engineering degree at THE Ohio State University, but I'm currently living in the SF Bay Area. (David Greene is the man - his meetups have been very fun and very informative).

My goal is to purchase and rent my first single family home in the Columbus area by the end of the year. I'm looking for properties in B- areas (more or less), and my research has led me to look in Reynoldsburg.

I would absolutely love to hear any recommendations for agents or property managers in the area, and I'd also love to hear any thoughts on the state of the Columbus-area market. I'm worried that the market might already be too hot and high for what I'm hoping to accomplish.

Thanks for reading! Looking forward to meeting you.

Colin

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Brian Garlington
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
7y

Reach out to @Mark Welp

He can help you out regarding investment property in Columbus.

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  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    Reach out to @Mark Welp

    He can help you out regarding investment property in Columbus.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    7y

    @Colin Haag I did some quick research on the Reynoldsburg area and comparables indicate that homes are selling for $160,000 - $200,000 and are renting for $1,600-$2,000. If you find a property that needs some work you can BRRR it. I think this area would be great for your first rental. I am an agent and property manager in the area. Please let me know if you need any assistance!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    1Reply
  • Austin Steed
    Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
    7y

    @Colin Haag What about your research led you to just Reynoldsburg? There are plenty of B class neighborhoods in Columbus. Westerville, Hilliard (Some A some B), Galloway, Grove City. My suggestion is that you cast a wide net and then you can pick the ones with the best numbers. Happy investing and Go bucks.

    0Reply
  • Matt Ward
    Specialist · San Francisco Bay Area · Member since 2018 · 221 posts · 160 votes
    7y

    Just curious... since you are now living in one of the best real estate markets in the world, why not invest in your backyard?

    0Reply
  • Colin Haag
    OP
    San Francisco, CA · Member since 2017 · 3 posts · 5 votes
    7y

    Thanks guys! I appreciate the responses.

    @Austin Steed - What lead me to Reynoldsburg specifically was the school ratings, proximity to downtown, the median home values, and the relatively high rate of rentals (vs owner occupied) already existing. A lot of the other B areas, like Hilliard, Westerville, and Gahanna, are priced beyond my comfort zone as a first-time investor. I personally believe that a dip in the economy is coming soon and I don’t want to over-leverage myself. That being said - you’re absolutely right that there are other areas worth considering. I’ll take another look at Grove City and Galloway. Thanks! And Go Bucks.

    @Matt Ward - Two main reasons I don't want to invest out here. 1) The money I have earmarked for investing is nowhere near enough for a down payment on a traditional non-FHA loan out here, and 2) the prospect of a 10% dip in home value amounting to $80k+ rather than $10-20k is terrifying to me as a new investor. It would be such a dominant portion of my overall portfolio at this time. I'm more comfortable with the home values in the Midwest, and their general insulation from wild swings in value. That being said, I'm open to being convinced otherwise!

    Thanks again everyone. I look forward to some good conversation.

    Colin

    1Reply
  • Matt Ward
    Specialist · San Francisco Bay Area · Member since 2018 · 221 posts · 160 votes
    7y
    Originally posted by @Colin Haag:

    Thanks guys! I appreciate the responses.

    @Austin Steed - What lead me to Reynoldsburg specifically was the school ratings, proximity to downtown, the median home values, and the relatively high rate of rentals (vs owner occupied) already existing. A lot of the other B areas, like Hilliard, Westerville, and Gahanna, are priced beyond my comfort zone as a first-time investor. I personally believe that a dip in the economy is coming soon and I don’t want to over-leverage myself. That being said - you’re absolutely right that there are other areas worth considering. I’ll take another look at Grove City and Galloway. Thanks! And Go Bucks.

    @Matt Ward - Two main reasons I don't want to invest out here. 1) The money I have earmarked for investing is nowhere near enough for a down payment on a traditional non-FHA loan out here, and 2) the prospect of a 10% dip in home value amounting to $80k+ rather than $10-20k is terrifying to me as a new investor. It would be such a dominant portion of my overall portfolio at this time. I'm more comfortable with the home values in the Midwest, and their general insulation from wild swings in value. That being said, I'm open to being convinced otherwise!

    Thanks again everyone. I look forward to some good conversation.

    Colin

     I totally understand #1.  Regarding #2, I'm not sure I follow the logic - - from a percentage of cost, they do suffer wild swings in value in much the same way every asset does, it's just they cost less so you have less cash in so it seems easier to swallow.  Also, regarding a 10% dip in home values... that would likely effect the midwest just as much, if not more, than CA.  The difference is that in years preceding a dip, a CA asset will appreciate significantly whereas a midwest/rustbelt property will not.

    Check out some of @neal bawa's webinar's and data points, specifically "Real (inflation adjusted) Price Gains".+

    Just an opinion!

    0Reply
  • Colin Haag
    OP
    San Francisco, CA · Member since 2017 · 3 posts · 5 votes
    7y

    @Matt Ward - Basically, I'm just afraid of owning a single asset whose swing in value could potentially be 6 figures while I'm still learning the ropes. I'd feel like a housecat playing a tiger's game. Does that make sense?

    Thanks for the recommendation on the webinar - I'll check it out!

    Colin

    1Reply
  • Matt Ward
    Specialist · San Francisco Bay Area · Member since 2018 · 221 posts · 160 votes
    7y
    Originally posted by @Colin Haag:

    @Matt Ward - Basically, I'm just afraid of owning a single asset whose swing in value could potentially be 6 figures while I'm still learning the ropes. I'd feel like a housecat playing a tiger's game. Does that make sense?

    Thanks for the recommendation on the webinar - I'll check it out!

    Colin

    Yes makes sense.  Thanks for sharing.  It seems like you are conscious of your risk in certain areas, I'm just saying make sure you pay attention to as many of the risk points/areas as you can... no one is perfect though, best thing is to get the first deal!

    0Reply
  • Kevin Miller
    Realtor · Columbus, OH · Member since 2019 · 83 posts · 62 votes
    7y

    @Colin Haag sorry about you going to ohio state (big hater here) but Columbus is a hot market all around. The 2 hottest markets are olde towne east and franklinton. Fix and flips or fix and hold. People are setting the prices and are getting them. It's crazy right now

    1Reply
  • Austin Steed
    Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
    7y

    Keep in mind that Galloway has a divide in it. Half goes to South Western Schools and the other half goes to Hilliard, big difference! Best of luck sir. 

    1Reply
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