Best growth potential neighborhoods in Columbus for a first time investor?

Question

Looking to develop my first small multi family (2-4 units) project and am curious as to what the trends are in Columbus.  What neighborhoods have some of the best growth potential?

I've heard Old Town East, Eastern Franklinton and Milo-Grogan are potentially up and and coming neighborhood districts.  But I'm also curious about areas like Hungarian Village, Southern Orchards.

I'm an architect with a little experience general contracting.  I am also hoping to live in one of the units I build to sort of house-hack this rental property.

I'm new to the world of real-estate investment, so any insight is welcomed!  Even if its just help directing me where to look to find information I need.  Thanks in advance!

Samuel Diouf · Answer

Most B and A areas will be good to look into for new construction. Everything in Columbus is seeing growth. Are you looking to build to sell or hold?

Brandon Goldsmith · Answer

All of the neighborhoods you just mentioned is what I would say. Hungarian village is the furthest out for development but it will get there eventually. Have you developed before? @Mike K.

Min Zhang · Answer

North Linden, South of Main, Vassor Village, Woodland Park, MT Vernon, Milo-Grogan, Franklinton, Merrion Village, Hungarian Village, Southern Orchards, Driving Park, Olde Towne East, Franklin Park, King Lincoln, Old Oaks, Livingston Park are all but not limited to some areas in Columbus, Ohio I think will gentrify quickly and make for great long term buy and holds. I personally have success in doing flips with my partner here in Ohio.

Mike K. · Answer

The plan would be to hold.  Live in one unit and rent the remaining out.

Jack Matthias · Answer

Hi Mike!

Sounds like your looking to do the Fannie Mae 5% down program. I'd be happy to help on the financing aspect. Just shoot me a message and I'll be able to help you out

Zac Mckenzie · Answer

Hey Mike, your looking in the transitioning areas for sure. Maybe take a look at Driving park and Northern Karns park, you could also mix in some Old Oaks and King Lincoln for fun. If you looking in Milo Grogan just know that the west side of 71 will have Higher values then the east side. We have Bought renovated and sold in all of these areas as an Investor as well as a GC for for our clients. Let us know if we can help, Best of luck.

Alfath Ahmed · Answer

I would not develop if it is your first property. Why don't you house-hack a property first that is already on the market or find it off-market by a good realtor. It takes a lot practice, knowledge, and understanding of the real estate market to develop. My family is in development overseas and I do buy multi-family here. I would say start by house-hacking, then do a couple of BRRRR's or flips, and then take ground on developing. That is your best bet.

Otherwise, you will overpay for development and your project will go off-budget. You need to a Comparative Market Analysis (CMA) to really understand the true worth of what the asset is worth after development and YoY projections.

Happy to connect and talk more if you want to hop on a call.

Remington Lyman · Answer

If you are going to develop I would try to pick the most expensive neighborhood you can find land in

Best growth potential neighborhoods in Columbus for a first time investor?

Most Popular Reply