condo rental investment in Columbus, OH vs Cleveland, OH?

11 Replies

Originally posted by @Cecilia Rus :

Looking at Ohio as my next area to invest in rental condos, any suggestions?

 Welcome to the site Cecilia. The 1st place I recommend looking is The Ultimate Guide to Grading Cleveland Neighborhoods. From there you can narrow down the type of neighborhoods you are interested based on price & risk level.

Hi Cecilia,

I am a real estate agent here in Columbus. I own 10 rentals myself and 3 of them are condos. Columbus is a great market for you to see a high return on cash flow in rental property! 

Please let me know if I can help in anyway!

Thanks 

@Cecilia Rus Ohio is the 7th largest state in the US...you'll need to be a bit more specific...Columbus and Cleveland have large MSA's...Columbus region is 11 counties with a projected population of 3 million... Have you done any research on specific locations or neighborhoods? Condos are a niche market...why are you going after condos? 

Originally posted by @Brandon Sturgill :

@Cecilia Rus Ohio is the 7th largest state in the US...you'll need to be a bit more specific...Columbus and Cleveland have large MSA's...Columbus region is 11 counties with a projected population of 3 million... Have you done any research on specific locations or neighborhoods? Condos are a niche market...why are you going after condos? 

 Thanks Brandon, I have been doing condos for many years now.  I have 10 and they are paid off. I know is different of what other people do here but I get a solid 9 to 11% return, I do my own management.  Open to investigate different options. Not familiar with the term MSA yet. I was looking at Ohio but the taxes seem pretty high. I try B areas.

@Cecilia Rus

Hi Cecilia, I'm certainly no expert on condo investing, but perhaps others can chine in on the benefits of condo's vs. SFR's Multi's.

I'm sure there are great condos to invest in, but all I know is from personal experience dealing with Associations, HOA fees, and limitations of what you can and cannot do makes me never want focus on them as a stand-alone investment strategy. Maybe 1 or 2 but certainly not the bulk of my portfolio.

I'll give you an example, at my personal condo, they randomly assessed me (and everyone else) an additional $1,870/year for roof/siding every year for the next 3 years because the association didn't plan accordingly and put those funds in reserve. it's one of those things that you have no control over and if this was a rental, it would take a serious chunk out of my cash flow.

Again, just my opinion.

Originally posted by @CJ M. :

@Cecilia Rus

Hi Cecilia, I'm certainly no expert on condo investing, but perhaps others can chine in on the benefits of condo's vs. SFR's Multi's.

I'm sure there are great condos to invest in, but all I know is from personal experience dealing with Associations, HOA fees, and limitations of what you can and cannot do makes me never want focus on them as a stand-alone investment strategy. Maybe 1 or 2 but certainly not the bulk of my portfolio.

I'll give you an example, at my personal condo, they randomly assessed me (and everyone else) an additional $1,870/year for roof/siding every year for the next 3 years because the association didn't plan accordingly and put those funds in reserve. it's one of those things that you have no control over and if this was a rental, it would take a serious chunk out of my cash flow.

Again, just my opinion.

 Yes, that is definitely something to consider. I always analyze the finantials of the associations very well before purchasing and after 8 to 10 years I sell and do a 1031 exchange and get something newer to avoid assessments

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