Canadian thinking about Ohio

Foreigners Buying in the USA
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Canadian thinking about Ohio

Matt Hew
Member since 2020 · 7 posts · 6 votes

Hey everyone,

I currently live in Toronto but I am interested in real estate investing in Ohio, and I was hoping to get some help. I am in the early stages so I don’t have anything set up yet. My current goal is to get properties and rent them out to get a positive cash flow.

From my limited reading I believe these are the things I will need. An LLC, an agent, and a general contractor.

To get an LLC is there anyway I can do it myself from home or would a CPA make more sense? For the agent and GC that's where I would like some help. Is there anyone that BP can recommend?

I will have more questions but this is just a quick post to get the ball rolling.

Thanks!

3Reply
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Matt Hew:

Hey everyone,

I currently live in Toronto but I am interested in real estate investing in Ohio, and I was hoping to get some help. I am in the early stages so I don’t have anything set up yet. My current goal is to get properties and rent them out to get a positive cash flow.

From my limited reading I believe these are the things I will need. An LLC, an agent, and a general contractor.

To get an LLC is there anyway I can do it myself from home or would a CPA make more sense? For the agent and GC that's where I would like some help. Is there anyone that BP can recommend?

I will have more questions but this is just a quick post to get the ball rolling.

Thanks!

Welcome aboard Matt. Saw Cleveland was on your short list so I figured you'd get some value out of reading The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.

In addition there are tons of other turnkey markets out there besides Cleveland. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

  • Cincinnati, Ohio
  • Dayton, Ohio
  • Toledo, Ohio
  • Youngstown, Ohio
  • Cincinnati, Ohio
  • Memphis, Tennessee
  • Saint Louis, Missouri
  • Indianapolis, Indiana
  • Detroit, Michigan
  • Erie, Pennsylvania
  • Louisville, Kentucky
  • Milwaukee, Wisconsin
  • Jackson, Mississippi

Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

  • Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
  • Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
  • Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
  • Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
  • Make sure your property manager is a licensed real estate brokerage.
  • Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
  • Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.
2Reply
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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Matt Hew Are you looking in the Columbus, Ohio area?

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    1Reply
  • Matt Hew
    OP
    Member since 2020 · 7 posts · 6 votes
    6y

    @Remington Lyman I’ve been mostly looking in the Cleveland area, but I am open to Columbus as well.

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y

    @Matt Hew Cleveland is cheaper and closer to you so that would make sense.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Matt Hew:

    Hey everyone,

    I currently live in Toronto but I am interested in real estate investing in Ohio, and I was hoping to get some help. I am in the early stages so I don’t have anything set up yet. My current goal is to get properties and rent them out to get a positive cash flow.

    From my limited reading I believe these are the things I will need. An LLC, an agent, and a general contractor.

    To get an LLC is there anyway I can do it myself from home or would a CPA make more sense? For the agent and GC that's where I would like some help. Is there anyone that BP can recommend?

    I will have more questions but this is just a quick post to get the ball rolling.

    Thanks!

    DO NOT use an LLC, unless you're advised to do so. I highly suggest consulting with a cross-border tax/legal specialist to help you setup the proper structure for holding the properties.

    Secondly, if you have no experience handling long distance rehabs, you'd be better off buying turnkey rentals.  You'll pay top dollar, but will cut down immensely on the aggravation of rehabbing then renting it out from afar.  

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    6y
    Originally posted by @Matt Hew:

    Hey everyone,

    I currently live in Toronto but I am interested in real estate investing in Ohio, and I was hoping to get some help. I am in the early stages so I don’t have anything set up yet. My current goal is to get properties and rent them out to get a positive cash flow.

    From my limited reading I believe these are the things I will need. An LLC, an agent, and a general contractor.

    To get an LLC is there anyway I can do it myself from home or would a CPA make more sense? For the agent and GC that's where I would like some help. Is there anyone that BP can recommend?

    I will have more questions but this is just a quick post to get the ball rolling.

    Thanks!

     Hello and welcome! Cleveland is a great place to invest OOS. Make sure to link up with a great team if you are trying to go it from afar. Good luck! 

    0Reply
  • Stephanie Niles
    Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Matt Hew hello! I’m a new BP member as well and have posted a somewhat similar topic on the forum as well. While I am of course no expert and just in the research phase myself, I agree with @Chad U.. It seem like the llc method is better for US residents/ citizens. I’m waiting to hear back from a cross border law and accounting specialist but it appears setting up an LP is what’s recommended. Hope this helps you get in the right direction. 

    0Reply
  • Matt Hew
    OP
    Member since 2020 · 7 posts · 6 votes
    6y

    @Chad Urbshott I do plan on talking to someone who will have a better idea on how to create my business.

    I also plan to go more turnkey. I don’t want to get in to the rehabs right now. I’m more looking towards properties with tenants and a positive cash flow.

    0Reply
  • Matt Hew
    OP
    Member since 2020 · 7 posts · 6 votes
    6y

    Hey @Tom Ott if you don’t mind I might reach out to with some questions when I get this ball rolling.

    0Reply
  • Matt Hew
    OP
    Member since 2020 · 7 posts · 6 votes
    6y

    @Stephanie Niles hey, care to chat?

    1Reply
  • Jadi T.
    Virtual Assistant · Philippines · Member since 2011 · 54 posts · 30 votes
    6y

    I hope you'd find someone that can answer your query, Matt. I'm not from the area but I am thinking about Ohio too. I work with an investor there. He buys in Southwest part. 

    1Reply
  • Account Closed
    Real Estate Investor · Waldorf, MD · Member since 2014 · 592 posts · 320 votes
    6y

    We're looking in Cincinnati and have linked up with a few great investors in the area.  There are truly great promises in Ohio.

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Ohio definitely has a lot to offer its investors @Matt Hew!

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    6y
    Originally posted by @Matt Hew:

    Hey @Tom Ott if you don’t mind I might reach out to with some questions when I get this ball rolling.

     Sure thing! Any time! 

    0Reply
  • Stephanie Niles
    Investor · Toronto ( GTA) · Member since 2020 · 12 posts · 6 votes
    6y

    @Matt

    @Matt Hew hey! sending you a PM now.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    6y
    Originally posted by @Matt Hew:

    Hey everyone,

    I currently live in Toronto but I am interested in real estate investing in Ohio, and I was hoping to get some help. I am in the early stages so I don’t have anything set up yet. My current goal is to get properties and rent them out to get a positive cash flow.

    From my limited reading I believe these are the things I will need. An LLC, an agent, and a general contractor.

    To get an LLC is there anyway I can do it myself from home or would a CPA make more sense? For the agent and GC that's where I would like some help. Is there anyone that BP can recommend?

    I will have more questions but this is just a quick post to get the ball rolling.

    Thanks!

    Welcome aboard Matt. Saw Cleveland was on your short list so I figured you'd get some value out of reading The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.

    In addition there are tons of other turnkey markets out there besides Cleveland. Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

    • Cincinnati, Ohio
    • Dayton, Ohio
    • Toledo, Ohio
    • Youngstown, Ohio
    • Cincinnati, Ohio
    • Memphis, Tennessee
    • Saint Louis, Missouri
    • Indianapolis, Indiana
    • Detroit, Michigan
    • Erie, Pennsylvania
    • Louisville, Kentucky
    • Milwaukee, Wisconsin
    • Jackson, Mississippi

    Each of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio. I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.

    One thing to note when looking at the individual markets, you can make or lose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

    • Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
    • Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
    • Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
    • Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
    • Make sure your property manager is a licensed real estate brokerage.
    • Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
    • Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.
    2Reply
  • Michael Klinger
    Rental Property Investor · Rancho Mirage, CA · Member since 2014 · 101 posts · 63 votes
    6y

    Fun fact: Cincinnati is twice in prior list. Not unlike nearly every letter in its name. 

    0Reply
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