Expectations for BRRRR in Columbus OH

[Darryl H.]

Hello! I am first time real estate investor from California. I am looking to BRRRR in Columbus OH, in North Linden or any similar C+/B- neighborhood. My budget will be around $200K saved up within the next year to finance a cash offer and rehab.

I am planning for a 3 bedroom SFR, cash offer of 125K-150K, and rehab costs of 20K-40K. Including closing & holding costs I can be at ~170K all in, and I am guessing around 200K ARV (maybe a higher ARV? I need to get some more opinions on this too). Does this all sound reasonable so far?

With a 75% LTV I would have to leave ~20K in the deal. I think I would be okay with this since it is half the down payment of a $200K property, I would have 50K in total equity right from the start, and I get a fully refurbished property. Minimal cash flow is acceptable for me because it seems like appreciation and increased rent could work well for me long term. I also do not plan on quitting my W2 job any time soon.

Are my expectations with BRRRR too low here? I already spoke with an agent & contractor that have been super helpful with all my questions. I just cannot get the numbers to work out to fully recoup all the money I would put in. Should I just consider a different market where I have a better chance to recover more of my cash invested?

[Remington Lyman]

Quote from @Darryl H.:

Hello! I am first time real estate investor from California. I am looking to BRRRR in Columbus OH, in North Linden or any similar C+/B- neighborhood. My budget will be around $200K saved up within the next year to finance a cash offer and rehab.

I am planning for a 3 bedroom SFR, cash offer of 125K-150K, and rehab costs of 20K-40K. Including closing & holding costs I can be at ~170K all in, and I am guessing around 200K ARV (maybe a higher ARV? I need to get some more opinions on this too). Does this all sound reasonable so far?

With a 75% LTV I would have to leave ~20K in the deal. I think I would be okay with this since it is half the down payment of a $200K property, I would have 50K in total equity right from the start, and I get a fully refurbished property. Minimal cash flow is acceptable for me because it seems like appreciation and increased rent could work well for me long term. I also do not plan on quitting my W2 job any time soon.

Are my expectations with BRRRR too low here? I already spoke with an agent & contractor that have been super helpful with all my questions. I just cannot get the numbers to work out to fully recoup all the money I would put in. Should I just consider a different market where I have a better chance to recover more of my cash invested?

 A lot of the deals I do in Columbus have equity still in them. I do not mind it. Less debt and I cash flow better. In 30 years, they will be paid off and I will be rich.