Buying Columbus from out of state? What I'd verify before a 1-4 unit

Buying Columbus from out of state? What I'd verify before a 1-4 unit

Realtor · Columbus, Franklin County · Member since 2026 · 81 posts · 20 votes

I see a lot of out-of-state investors looking at Columbus, and I get why: a diverse job base, steady population growth, and a big stock of older 1-4 unit housing. I've invested here for 17 years and work with investor buyers, so here is what I'd check before wiring earnest money from another state.

Neighborhood fit matters more than the city headline. Columbus changes block by block. Two duplexes a mile apart can have very different tenant pools, turn times and appreciation stories. Get street-level eyes on it, or at least drive it virtually at different times of day, and ask a local who owns nearby.

Know the age of the housing stock. Much of the $100K-$350K inventory is pre-1960. Budget for sewer scopes, electrical updates, and lead-safe work practices on older properties. A cheap purchase price can hide an expensive inspection.

Check city specifics. Columbus has its own code enforcement and permitting process, and the city is in the middle of a large rezoning effort (Zone In). If your plan involves adding units or changing use, confirm what is allowed before you count on it.

Line up the team before the house. Property manager, contractor, and insurance agent should be lined up during due diligence, not after closing. If your PM can't give you a realistic rent and turn timeline for that specific street, that's a signal.

Underwrite conservatively. I'd rather see a deal work at today's rates with real vacancy and capex numbers than depend on a refinance that may not come.

Out-of-state folks already in Ohio: what was the one thing you wish you had verified before your first purchase?

BJ Everson | Realtor with Swiss Realty Group

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    2d

    BJ, this is a great checklist for out-of-state investors. I'd add one thing that often gets overlooked until after closing: getting the tax and accounting side set up correctly from day one.

    For an out-of-state rental, I'd want the ownership structure, property-level books, improvements vs. repairs, and depreciation records organized from the beginning. I'd also underwrite the investment based on its after-tax return, not just the projected monthly cash flow.

    A property can look great operationally and still produce a very different return once you account for taxes and the costs of eventually selling or exchanging it.

    Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

    INVESTOR FRIENDLY CPA®4.9242 Reviews
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  • Member since 2026 · 56 posts · 22 votes
    2d

    After the checklist, the harder part for an out of state buyer is knowing which Columbus neighborhoods have renovation work starting. For the city of Columbus we gather residential building permit filings from official records, one time, not a subscription, so you can see where projects are being filed. Which part of Columbus are most of the investors you work with looking at?

  • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    2d

    For out of area buyers I think the no brainer is to invest the time to actually walk these neighborhoods prior to purchasing. I’m not sure if it’s greed, laziness or just ignorance but the number of posts here from green investors who thought their class C neighborhood was actually A or B should serve as a warning.

  • Jordan FioreBusiness Member
    Real Estate Agent · Cincinnati, OH · Member since 2020 · 199 posts · 150 votes
    2d

    BJ, this is a solid checklist — and it reads almost exactly the same in Cincinnati, which is why I think it is worth repeating for anyone comparing Ohio markets.

    The two misses I see most from out-of-state buyers are the ones you flagged: they underwrite the asking rent instead of the actual rent, and they never get the PM's rent and turn timeline for that specific street in writing before they offer. A PM who cannot give you both is telling you something.

    I would add one more to your list: confirm who pays utilities and get the actual tax bill and a real insurance quote before you trust the cash flow. On older 1-4 unit stock, those three items move the numbers more than a small price negotiation does.

    Depending on what type of location you are buying in, try to figure out realistic MTR rent that you could potentially get. I have had majority of my clients that go MTR route find success but needs to be in a desired location to pull that high monthly rent.

    If you are comparing Columbus and Cincinnati, happy to share what I am seeing on the Cincinnati side — pricing per door by pocket, and where the turn timelines are actually landing.

    Jordan Fiore, Realtor - eXp Realty568 Reviews
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