suggestions for the first investment property

Developer · Copley, OH · Member since 2022 · 9 posts · 6 votes

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

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Anthony L Amos Jr

Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes

Quote from @Raghavendra Kandukuri:

Toledo, Cleveland, and Dayton are all good for cashflow and are right here in Ohio.

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Raghavendra Kandukuri
house hack
2 Reply
Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
3y
@Raghavendra Kandukuri
Hi! I am an agent in Cincinnati, OH and I recommend this area! I also recommend househacking. You won't break even or cash flow, but you will have a place to live for a lot lower than you would paying a mortgage, or even rent, all on your own. Use 3.5% FHA loan, rent out the other unit, and that money will help pay for the mortgage, taxes, insurance, etc
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Billy Daniel
Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes
3y
You'll probably want to start with a house hack. Really though, you need to define your goals. "Getting into real estate" isn't a goal. Do you want long term rentals, short term rentals, flipping opportunities, single family, multifamily, etc... Once your goals are defined, you can begin your search in areas that favor that particular goal. Make sense?
The non-specific "getting into real estate" means you probably never will....unless you define your goals.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

Great rentals in your state with 10% or higher cap rates, based on cash purchases, about 100k all in
good luck
2 Reply
John Mathew
Real Estate Agent · Member since 2019 · 143 posts · 74 votes
3y
Good day! I would really recommend house hacking. House hacking can be a good way to get started in real estate investing without having to purchase a rental property requiring a big down payment. By using an extra bedroom or units in a multifamily property to rent, house hacking can turn a home that's already owned into a property that generates rental income. Hope this helps!
1 Reply
Alvin Slate
Real Estate Agent · Atlanta, GA · Member since 2021 · 14 posts · 11 votes
3y
I would recommend focusing on areas that generally have significant cash flow if that is most important to you. Jackson, MS, Toledo, OH, and Augusta GA are a few. The options for financing will depend on your unique situation so you'd want to connect with a lender to understand those options.
2 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Raghavendra Kandukuri- begin the loan pre approval process .....there are not many different types of loans for rentals ....if dealing with banks / institutions your best best will be a 30 yr fixed rate and you will need a down payment of a minimum of 15% of the price
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Killeen Texas is a great cash flow market
1 Reply
Anthony L Amos Jr
Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

Toledo, Cleveland, and Dayton are all good for cashflow and are right here in Ohio.
3 Reply
Conner Olsen
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

Ohio has some great options. Invest where you are familiar with the area.
1 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

I suggest Columbus, Ohio
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Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
3y
@Raghavendra Kandukuri
Oh is a good state for cash flow. Cincinnati, Columbus, Cleveland, etc. If you are interested in Cincinnati let me know! I would love to answer any question you may have!
[email protected]859-443-4952
Sam McCormack Realtor
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Raghavendra Kandukuri
OP
Developer · Copley, OH · Member since 2022 · 9 posts · 6 votes
3y
@Sam McCormack Thank you!
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Raghavendra Kandukuri
OP
Developer · Copley, OH · Member since 2022 · 9 posts · 6 votes
3y
@Billy Daniel Thank you, apologies for not being clear enough, basically i am looking for long term rentals.
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Raghavendra Kandukuri
OP
Developer · Copley, OH · Member since 2022 · 9 posts · 6 votes
3y
@John Mathew thank you
0 Reply
Raghavendra Kandukuri
OP
Developer · Copley, OH · Member since 2022 · 9 posts · 6 votes
3y
@Alvin Slate, thank you. So why do you think toeldo has potential to be rental market?
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Dave PoeppelmeierBusiness Member
Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
3y
@Raghavendra Kandukuri you live in a great market! I grew up in Green, and the Akron area should have plenty of properties that will perform well that you can manage yourself to start. In Ohio, you should NEVER "break even". You can figure Property Management in your numbers so when you scale you know you're still going to cash flow enough to your tastes. Find an Investor Agent around you in Akron and start looking for deals in your own backyard. Good luck!
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Raghavendra Kandukuri
OP
Developer · Copley, OH · Member since 2022 · 9 posts · 6 votes
3y
@Dave Poeppelmeier Thank you
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
3y
@Raghavendra Kandukuri Ohio has several strong markets you can invest in - Cleveland, Columbus, Cinncinnati, Toledo, etc.
Do some searching here on BP!
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Slocomb Reed
Real Estate Agent · Cincinnati, OH · Member since 2014 · 170 posts · 102 votes
3y
@Raghavendra Kandukuri your profile says you're in Copley. I'm a house hacker personally (on my 2nd hack 8 years in), I love the investing strategy, and I hope it suits your lifestyle!
Whether or not house hacking is for you, I'd recommend focusing heavily on the Akron and Cleveland areas. You likely have a better understanding of your local market(s) than others and you'll be able to ge ton site and see things with your own eyes more easily there than anywhere else.
I invest in Cincinnati because I live here. Great for cash flow, but I'm an owner operator and I put a high priority on my ability to oversee the day-to-day of my own investments!
Cheers and good luck in your investing journey!
1 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

You live in OH, there everywhere IF you have a team in place. Cleveland has and remains the best overall rental market. 10% net caps are to be had , cash purchases ) .100% hands off. Its all about your team and knowledge
Good Luck
1 Reply
Simon Ashbaugh
Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

Ideally, you'd want to get into a 2-4 unit and owner occ it. I see you're in Copley, is it an option to move up north a little and get into Cleveland? There's a ton of cash flowing properties up there. As for loan products, I can send a list of Cleveland lenders and you can call a few to figure out what works best for you.
0 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
3y
I second what everyone else is saying. Start with a house hack! I did that on a 4 unit. It should get you in a neighborhood you like for low down. Being in a neighborhood you are willing to live will mean tenants that are like you and easier to manage for the long term after you leave.
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James McMurrey
Lender · CA CO FL GA OK TN TX VA, & WA · Member since 2019 · 29 posts · 19 votes
3y
I'd recommend an FHA loan. You can house hack your way through your first rental property. The FHA/VA loan options allow for the smallest downpayments possible so that you can save money as you navigate balancing expenses for the first time (must be your primary residence, hence the house hacking part). FHA loans will allow for 30 yr. fixed rate terms so you can predict the cash flow a lot better and get the lowest monthly payment possible.
Most other investment property purchases will require 15% down. Other options exist as far as "fix to rent" and "fix to flip" programs but that might be a lot to take on for your first project.
Shoot me a DM if you have more questions on the loan side.
1 Reply
Mike Mocek
Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
3y
Quote from @Raghavendra Kandukuri:

Hi, i am looking for my first investment property, and i’m new to real estate and looking for suggestions interms of state/location, type of loan which can generate some positive cash flow or break even.

I invest in Cleveland, Akron, Toledo and Tampa, FL and I personally, like the secondary markets better (Toledo and Akron). Although my larger cities show good appreciation, I really enjoy the secondary markets better.
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