Chicago Resident looking to Invest in Columbus

7 Replies

I graduated from college in May and I moved to Chicago shortly afterwards to start my job. I have constantly been looking for deals in Chicago but it is very difficult to find cash flow in areas that I would want to be investing in. I am 0-3 on my offers so far as I have had to go FHA to satisfy the higher price level of the properties here. The PMI, high taxes, and relatively high price-to-rent ratios (failure to meet 1% rule) have made it VERY difficult to find cash flow in a quality area with my current net worth.

These struggles have sparked my interest in Columbus (as well as Indy), although I have very little knowledge of the investing landscape in the city. I would love to get a quasi "Crash Course" on Columbus investing and start learning about the city/good areas to look for investment properties (preferably 2-4 unit turn-key or light cosmetic rehab properties).

I would also love to make any and all possible connections with fellow investors, brokers, and lenders in the city so I can start building my Columbus deal team. So please reach out if you would like to hop on a phone call to talk Columbus real estate strategy/deals or if you think you know someone that would be a good resource to me. Thank you very much.

Originally posted by @Reed Meyer :

I graduated from college in May and I moved to Chicago shortly afterwards to start my job. I have constantly been looking for deals in Chicago but it is very difficult to find cash flow in areas that I would want to be investing in. I am 0-3 on my offers so far as I have had to go FHA to satisfy the higher price level of the properties here. The PMI, high taxes, and relatively high price-to-rent ratios (failure to meet 1% rule) have made it VERY difficult to find cash flow in a quality area with my current net worth.

These struggles have sparked my interest in Columbus (as well as Indy), although I have very little knowledge of the investing landscape in the city. I would love to get a quasi "Crash Course" on Columbus investing and start learning about the city/good areas to look for investment properties (preferably 2-4 unit turn-key or light cosmetic rehab properties).

I would also love to make any and all possible connections with fellow investors, brokers, and lenders in the city so I can start building my Columbus deal team. So please reach out if you would like to hop on a phone call to talk Columbus real estate strategy/deals or if you think you know someone that would be a good resource to me. Thank you very much.

Columbus is a great market to get started in. I started with house hacking a double and now I am at 27 doors.

 

I feel your pain with trying to afford something in your local area.  I live in Los Angeles and purchased two duplexes in Columbus earlier this year.  @Remington Lyman helped guide me to the areas to invest in and gave me a list of people to help build my out of state team.  There's plenty of those 2-4 unit turnkeys that pop up for sale in Columbus.  They're normally investors that are either flipping a property or they've owned it for a long time and want to rehab it before they sell it so they can get more money.  The cashflow on those will be a lot less but they're much safer purchases since most of the work has already been done and you don't have to worry about running into problems during a rehab.  Columbus is very tough to find good contractors.

The two duplexes I purchased each had one side rehabbed and the other side still needed work but was rented with a tenant.  That way I could start cashflowing right away but had the opportunity to rehab the second side to add value later on.  There are plenty of properties in Columbus where both sides need light cosmetic work so you can still add value.

It's a very competitive market though.  I made 23 offers on 13 different properties before figuring out what it took to win one and landing my first purchase.  Both purchases were cash right at or above asking price.  Good luck on your journey!

@Reed Meyer - Deals are here in Chicago, just hard to find.  Either way, the most important part is getting started, kudos to you for recognizing you might not find what you are looking for in Chicago and pivoting.  Where have you been looing and what is your price point?

I don't know anything about Columbus, but if you change your mind back to Chicago.  Let me know how I can help.

Originally posted by @Reed Meyer :

I graduated from college in May and I moved to Chicago shortly afterwards to start my job. I have constantly been looking for deals in Chicago but it is very difficult to find cash flow in areas that I would want to be investing in. I am 0-3 on my offers so far as I have had to go FHA to satisfy the higher price level of the properties here. The PMI, high taxes, and relatively high price-to-rent ratios (failure to meet 1% rule) have made it VERY difficult to find cash flow in a quality area with my current net worth.

These struggles have sparked my interest in Columbus (as well as Indy), although I have very little knowledge of the investing landscape in the city. I would love to get a quasi "Crash Course" on Columbus investing and start learning about the city/good areas to look for investment properties (preferably 2-4 unit turn-key or light cosmetic rehab properties).

I would also love to make any and all possible connections with fellow investors, brokers, and lenders in the city so I can start building my Columbus deal team. So please reach out if you would like to hop on a phone call to talk Columbus real estate strategy/deals or if you think you know someone that would be a good resource to me. Thank you very much.

Excellent choice in a market! Are you looking to invest in SFH or MUH?