Advice for new investor looking in the Ohio market

Andrew Weiner

Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes

I would strongly recommend coming and touring the cities. I’m active in the Cleveland market and it’s sometimes hard to explain the differences between areas, what kinds of deferred maintenance you might run into, and how much amazing activity there is in the city. There are areas that have been appreciating for a while, it’s always hard to predict appreciation so I am reluctant to say what areas are going up but there are lots of areas that will meet your budget and provide double digit cashflow. I like Garfield and Maple heights for single families with good cashflow. Shaker and Cleveland Heights are great also but have a higher entry point.

4 Reply

James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

Originally posted by @Cynthia Garcia:

Hello, my name is Cynthia and I'm a rookie real estate investor. I'm based in California but looking to buy in Ohio, primarily looking at Cincinnati, Cleveland and Columbus. I am interested in properties in the 80k-110k range for SF homes (3bd/2bath). My goal is to have a good cash flow property and also appreciation. Or if I can't have both, would focus on cash flow. I'd love to get some thoughts around the following:

1. How do I go about building out my power team (agent, property management, contractor)? (I've already starting looking into lenders, but always happy to review what else is out there). Any referrals here would be appreciated.

2. What suggestions do you have around the best neighborhoods to invest in? I've been doing a bit of research but would love to hear some advice from folks who've invested here before.

3.Any other advice you'd give to someone who's new in the game?

Really appreciate any insights anyone has. Thank you!

Welcome Cynthia! In regards to neighborhoods in your desired price points I think you'll be hard pressed to find anything in the Columbus market. Hitting those price points in the Cleveland market will be very easy though. HOWEVER you need to make sure you know what you are buying. There is a lot of blight up here in Cleveland that out of state investors aren't familiar with. Give The Ultimate Guide to Grading Cleveland Neighborhoods a read before making any moves.

Brandon SturgillBusiness Member

Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes

Columbus Crane Watch- Interactive Map

@Cynthia Garcia welcome and congrats on getting going. You can certainly find opportunity in any metro area in the state...we focus on Columbus. Here are a few local resources

One Columbus

Columbus 2050 Blueprint

Columbus Development

Columbus Downtown Development Corporation

City of Columbus Capital Projects

Columbus Neighborhoods

Opportunity Zones

Opportunity Zone Prospectus

Tax Abatement

Mid-Ohio Regional Planning Committee

937-979-7000

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Brandon SturgillBusiness Member

Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes

@Cynthia Garcia Here are the Trade Area Reports if you want a demographic read on some hot spots in Ohio

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Marc RiceBusiness Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes

[email protected]614-363-2787

@Cynthia Garcia

Overall Columbus is better for long term appreciation and more stable growth while Cincinnati and Cleveland have higher cash flow but more volatility and lower growth rates.

1. A core 4 is the most important piece. I believe starting with a good investor friendly agent who knows rockstar lenders, property managers, and contractors is a good way of going about it.

2. The neighborhoods in each market will be very nuanced from A all the way to C-/D. You’ll get the best cash flow in C class neighborhoods. I personally don’t like the C-/D class ones but C and better is not bad. I can share a map of Columbus if you’d like.

3. Advice would be clearly define your goals and how you will finance those goals. Starting with a prequalifcation letter from a lender and putting yourself in the “ready” position always helps move the ball forward. Take one step at a time!

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Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

https://www.biggerpockets.com/blog/core-four-real-estate-team

Originally posted by @Cynthia Garcia:

Hello, my name is Cynthia and I'm a rookie real estate investor. I'm based in California but looking to buy in Ohio, primarily looking at Cincinnati, Cleveland and Columbus. I am interested in properties in the 80k-110k range for SF homes (3bd/2bath). My goal is to have a good cash flow property and also appreciation. Or if I can't have both, would focus on cash flow. I'd love to get some thoughts around the following:

1. How do I go about building out my power team (agent, property management, contractor)? (I've already starting looking into lenders, but always happy to review what else is out there). Any referrals here would be appreciated.

2. What suggestions do you have around the best neighborhoods to invest in? I've been doing a bit of research but would love to hear some advice from folks who've invested here before.

3.Any other advice you'd give to someone who's new in the game?

Really appreciate any insights anyone has. Thank you!

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

I invest locally in Columbus, Ohio

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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

Cynthia be very very careful who you hire in Cleveland as a pm or agent. There is one to absolutely positively stay far far away from.

Ryan Herting

Lender · Philadelphia, PA · Member since 2020 · 139 posts · 103 votes

Hi @Cynthia Garcia

Here are some of my thoughts on your questions.

To go about building a power team I would make calls to real estate agents, property management companies, and local appraisers to start. They can guide you to a reliable contractor in the area since they see all the projects locally.
As for neighborhood suggestions, I would use available data on Redfin, Zillow, Rentometer, and your conversations with agents to narrow down on specific markets. Also, a basic google search will provide local articles on neighborhoods. Once you narrow in on your neighborhood it's worth a trip to walk the streets and get a feel for the neighborhood. I would do it early and late to make sure you know what happens at night.
As for other advice, be patient and stay committed to your vision. Know your numbers, build a great team and execute

Hope this helps!!

OP

Investor · CA · Member since 2020 · 13 posts · 16 votes

@AJ Originally posted by @Aaron W.:

@Cynthia Garcia Great to hear you are getting into investing!

Your team will be key in out-of-state (OOS) investing. I'd recommend asking around for recommended brokers, property managers, and potentially contractors. Since you already have a lender, you may be good there.

One of your more important team members will be the property manager, especially as an OOS investor. Not all PMs are created the same and you want to find one who you are comfortable working with and trust. They can make or break your investment depending on how they manage it.

Ohio is a very hot market and you will want to be ready to move quickly on properties ONLY when it meets your investing criteria. Don't force yourself into a deal just to be in a deal. Make sure the numbers work and you are being conservative in your analysis, especially in this current stage of the market cycle.

Best of luck!

Thanks for the advice AJ! Have definitely been seeing houses move fast so I'm looking to move quickly in putting my team together but also ensuring I'm making a smart investment.

OP

Investor · CA · Member since 2020 · 13 posts · 16 votes

Originally posted by @James Wise:

Originally posted by @Cynthia Garcia:

Hello, my name is Cynthia and I'm a rookie real estate investor. I'm based in California but looking to buy in Ohio, primarily looking at Cincinnati, Cleveland and Columbus. I am interested in properties in the 80k-110k range for SF homes (3bd/2bath). My goal is to have a good cash flow property and also appreciation. Or if I can't have both, would focus on cash flow. I'd love to get some thoughts around the following:

1. How do I go about building out my power team (agent, property management, contractor)? (I've already starting looking into lenders, but always happy to review what else is out there). Any referrals here would be appreciated.

2. What suggestions do you have around the best neighborhoods to invest in? I've been doing a bit of research but would love to hear some advice from folks who've invested here before.

3.Any other advice you'd give to someone who's new in the game?

Really appreciate any insights anyone has. Thank you!

Welcome Cynthia! In regards to neighborhoods in your desired price points I think you'll be hard pressed to find anything in the Columbus market. Hitting those price points in the Cleveland market will be very easy though. HOWEVER you need to make sure you know what you are buying. There is a lot of blight up here in Cleveland that out of state investors aren't familiar with. Give The Ultimate Guide to Grading Cleveland Neighborhoods a read before making any moves.

James, thanks for sharing this article! I'll give this a read. I've definitely heard that neighborhoods change by block so want to be smart about where I'm buying.

OP

Investor · CA · Member since 2020 · 13 posts · 16 votes

Originally posted by @Brandon Sturgill:

@Cynthia Garcia Here are the Trade Area Reports if you want a demographic read on some hot spots in Ohio

Appreciate you sharing all these resources, Brandon. There is so much data online that I tend to get lost on what to base my predictions on. How do you go about finding the most accurate data?

OP

Investor · CA · Member since 2020 · 13 posts · 16 votes

Originally posted by @Marc Rice:

@Cynthia Garcia

Overall Columbus is better for long term appreciation and more stable growth while Cincinnati and Cleveland have higher cash flow but more volatility and lower growth rates.

1. A core 4 is the most important piece. I believe starting with a good investor friendly agent who knows rockstar lenders, property managers, and contractors is a good way of going about it.

2. The neighborhoods in each market will be very nuanced from A all the way to C-/D. You’ll get the best cash flow in C class neighborhoods. I personally don’t like the C-/D class ones but C and better is not bad. I can share a map of Columbus if you’d like.

3. Advice would be clearly define your goals and how you will finance those goals. Starting with a prequalifcation letter from a lender and putting yourself in the “ready” position always helps move the ball forward. Take one step at a time!

Thanks Marc! How did you tend to find a good real-estate agend? Anything in particular that you look for in an agent? Also, would love it if you could share the map with me. Really appreciate your advise.

OP

Investor · CA · Member since 2020 · 13 posts · 16 votes

Originally posted by @Brian Garlington:

Cynthia be very very careful who you hire in Cleveland as a pm or agent. There is one to absolutely positively stay far far away from.

Sending you a note now. Would like to hear your thoughts on which ones you'd advise to stay away from.

Michael K GallagherBusiness Member

Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes

[email protected]614-362-2231

@Cynthia Garcia welcome and congrats on jumping in! I’m in the Columbus market and unless you are looking to do some fairly large rehabs those price targets will be hard to hit for anything move in ready. If you expand your search to Dayton/Springfield/zainsville you might find better properties but the appreciation/tenant pool would most likely be significantly lower than in the three major city’s you referenced.

However, Columbus is a fantastic place to invest! Specific neighborhoods really depend on your price targets and long term goals as well as exit strategy. We do have a largely diversified economy with many pockets that present many different opportunity’s. Many hospitals to take advantage of traveling nursing programs. Colleges to take advantage of student housing, Amazon, Lbrands, express, chase, nationwide the list goes on of major employers in the area.

I Would be honored to help anyway I can on the ground. Don’t hesitate to reach out. I’ve got a duplex near down town and am an agent in the area.

Cheers,

Michael

Carissa Holmes

Austin, TX · Member since 2020 · 1 post · 1 vote

@James Wise thanks for sharing specific information sources! I noticed it was written 4 years ago, given your current knowledge of the Ohio market would you say that the information is still accurate? Thanks Again

James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

Originally posted by @Carissa Holmes:

@James Wise thanks for sharing specific information sources! I noticed it was written 4 years ago, given your current knowledge of the Ohio market would you say that the information is still accurate? Thanks Again

Great question. It's actually a living document so I frequently update it. So yes, it's an incredibly accurate resource.