Moving investment from London to Ohio

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Moving investment from London to Ohio

Salvatore Spano
Investor · France · Member since 2020 · 24 posts · 12 votes

Hi all, this is my first post. I am a non-US resident/citizen.

I am thinking of selling the only property I have in London (UK) and investing in Ohio (or indeed any state in the US). My investment in London is very safe, the property has been let continuously for the last 13 years, but I am not achieving more than 3.6% cap rate at present.

I would be able to invest up to 380K in the US. I would like to know:


- would I be able to achieve a better overall cap rate? Is this something worth considering?

- would it be more profitable to buy 5-6 properties or just a couple? And where? (Ohio has very attractive returns at present)

- any other issues I should be considering?

Thank you in advance for any suggestion.

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Darius Ogloza
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
6y

Most major cities in Ohio = Birmingham.  

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Salvatore Spano:

    Hi all, this is my first post. I am a non-US resident/citizen.

    I am thinking of selling the only property I have in London (UK) and investing in Ohio (or indeed any state in the US). My investment in London is very safe, the property has been let continuously for the last 13 years, but I am not achieving more than 3.6% cap rate at present.

    I would be able to invest up to 380K in the US. I would like to know:


    - would I be able to achieve a better overall cap rate? Is this something worth considering?

    - would it be more profitable to buy 5-6 properties or just a couple? And where? (Ohio has very attractive returns at present)

    - any other issues I should be considering?

    Thank you in advance for any suggestion.

     You should be able to crush that cap rate by investing in Ohio. Even safe investments return a better cap rate than that.


    I would make sure you talk to a local attorney or accountant to figure out what you need to do to invest in the US from the UK.

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  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Most major cities in Ohio = Birmingham.  

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  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    Those are some very achievable goals for investing. As far as the cap rates, I think you'll be able to find what you are looking for in Ohio to match your criteria.  It also all depends on your long term and short term goals whether it would be better to buy a few larger properties or a handful of smaller less expensive ones. It will come down to the combination of cash flow and appreciation. You should be able to find deals that have both. Good Luck! @Salvatore Spano

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  • Matt B.
    Investor · Chicago · Member since 2018 · 113 posts · 51 votes
    6y
    Originally posted by @Salvatore Spano:

    My investment in London is very safe, the property has been let continuously for the last 13 years, but I am not achieving more than 3.6% cap rate at present.

    Some things worth noting, Cap rate is not only a measurement of expected returns you can make, but it is also a measurement of risk. In down-town Chicago you will find commercial buildings with a similar cap rate of 3% - although it's not much in terms of return, it also doesn't really have to be marketed and the Vacancy rate/expenses are practically nil. Like your place in London, you will always have a tenant.

    Conversely I've found properties in Detroit that offer upwards of a 20% Cap rate. This is seen as a significant risk because these are in run-down neighborhoods with foreclosures as far as they eye can see. Squatters wouldn't be surprising either. Although you could buy the properties for pennies on the dollar and make a great return (in theory) the chances of having quality stable and long-term tenants here is rather unlikely.

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  • Salvatore Spano
    OP
    Investor · France · Member since 2020 · 24 posts · 12 votes
    6y

    Belated thanks to all for your valuable input.

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