Investor · Cincinnati, OH · Member since 2015 · 22 posts · 1 vote
Hey BP Fam!
Got a quick question. I have been approved for $100k Conventional Loan. I live in Cincinnati, OH and have not had much luck finding SFR's or Multifamilies within my budget that were not a complete overhaul or in a shady part of town. Time and time again Condos and Town-homes keep popping up, good condition and priced. As a first time investor trying to get my rental property business off the ground I cant help but to consider Condos and Town-homes as an option.
Not sure if anyone in Cincinnati, OH has had any experience with them, and if you had any advice.
I am not sure what your goals are. A deal cannot be good unles it helps you in that direction.
100k is definitely enough for a sfr in Cincinnati as a rental. Probably a duplex as well, and a stretch for a quad.
I personally find it risky buying properties that do not have toom for forced apreciation. Meaning a property I can improve to add value. I could buy a 40k house and put 20-30k into it and be doing pretty well in many neighborhoods in cincinnati. I look for the value to be over 80-90k in that example. Many places will lend the funds for construction as well.
Feel free to reach out I would be happy to grab coffee and discuss this further.
@Daniel Wetherill My father owns quite a few SFRs on the west side of town. Most of which are operating at a 9%-12% Cap Rate with valuations between $60K-$80K. Pretty decent returns for that kind of money. Definitely some value add opps as well.
He's made noise about selling, and regardless, would probably be willing to speak with you if you're interested in getting in to that game.
Let me know if you'd like me to make a connection.
Welcome to BP @Daniel Wetherill !! Its good to see other Cincinnati investors on this site! I'd have to agree with @Tyler Weaver's statement about deals not 'being good' if they don't more you forward in the direction of your over all RE goals..
So, to build on that statement, what are your goals..? You said you've been approved for $100k, what type of down payment do you have? (a larger DP will open up more options for you) What part of town are you considering? (I assume not Avondale :/ )
I can understand not wanting to get in to a deep rehab, but (IMHO) that's the only way to make any return in RE. When you can buy property X for $75k, put $15k in to it (easy rehab) , you're all in under $100k. The 15k rehab, hopefully forces some capital appreciation (think floors, kitchen & bath), so maybe then the property is worth $100/$110 depending on the area. (then you can refi and move to the next)
@Daniel Wetherill, you can definitely find deals with that budget, just have to open to certain neighborhoods. I can think of a few in the UC area right now. I'm an agent, not sure if you're working with one, but feel free to reach out with any questions. Lot of good advice from all the guys above too.