All Forum Posts by: Clay Boykin

@Anshul Pandey Personally, I always recommend Columbus, Oh. The return is defiantly there and the market is only growing. People talk about the Columbus market changing or being to expensive, I disagree. Depending on your investment strategy, Columbus can determine your cash flow remarkably. You will defiantly most likely stay around 150-200 a door and always manage at least 1% (sometimes 1.3). STR's are also getting more popular as the years go on as well. People are buying deals in areas such as Southern Orchards and Whitehall with hard money and making 35k in 3 months. If you're looking for cashflow, then I would say buy around Upper Arlington, Hilltop, or Westerville. You will have decent tenants while maintaining that 150-200 a door. If you have any further questions moving forward, reach out to me! Either way, Happy Investing!

@Steven M Herrick It starts with your goals. Since this is a long term process (6 months), it would obviously be a BRRRR. BUT, in this case since you only will be able to put about 35k in your property, I would do a STR and/or flip. Most BRRRR's are going to be around a year-3 years term. Most investors pull their equity out going into the second year so that way they can make about 100-200$ a door. Also, what type of loan are you doing? If I were you, I would turn most to Hard Money for a flip/str. Most lenders want their money back in a 12 months time, and doing this you could keep your ARV high.

Happy Investing!

@JC Chavez It depends on the market and type of property of course. I would suggest Columbus rather than Cleveland. Columbus is growing rapidly, especially in the past 6 months. The types of properties are vast but the 1% rule stands out in most. I would suggest doing quick flips at first then moving on to long term BRRRR's or Airbnb's. No matter what you invest in right now, your margin will be there.

You are correct about Cleveland's population factors. High crime, poor growth, DTI ratio's are dropping, etc. Every market has it's issues, it just depends on what issues you want!

Feel free to reach out to me about the Ohio market. Either way, Happy Investing!

@Avinash Dongarwar That's a great rate for that type of investment. Since they are on the same parcel that essentially enables you to rent/own both in one. Since it's also a private lender you could pull your equity out long term in order to continue your BRRRR. I would sit on the property for as long as you can until you notice positive cash flow and built equity, then sell to move on. Feel free to reach out to me. Either way, Happy Investing!

Hey there BP community!! I am looking for new meetups to go to weekly for educational purposes, in the Columbus area that is. What are y'alls recommendations?

Happy Investing!

@Sara T. It depends on your investment strategy. Looking for 1-2 units starting out is a great tactic. If your wanting to do a lipstick rehab it is very possible. If your wanting to house-hack it is very possible. For starting out, I would network as much as possible. You want to build a team that way when hiccups/problems arise, your not dead in the water. Especially being OOS. Columbus has a diverse rental market when it comes to investing. It also has a hot airbnb market. 

All in all though, my best advice for any newcomer is to network. Like the wise Robert Kiyosaki said, "your network is your net worth." 

Happy Investing!

@Joe S. Definitely narrow down your investment goals. This will help you in the long run when making crucial decisions. The BRRRR method uses refi to take out the equity to put into other gains. If your property is positively cash flowing then you shouldn't need to use it to cover payments as you would already be covering that with your passive income. If you have negative cash flow, then something isn't where it should be. You could take out your equity and immediately sell to get that negative asset off your hands. I would also say when it comes to taxes, 1031 exchange can be beneficial for this scenario. But like I said before, it depends on your future investment strategies.

Happy Investing!

@Garret Anthony There are many different outlooks with that much capital at hand. You could diversify your funds and have many investments going on at the same time. But if you're looking for multifamily, maybe just stick to the one. I would try to stay around the 7-9% Cap rate margin. I have had the best outcomes come from that market range. Finding your submarket for each property is probably more important than being concerned about the cap rate. If you have a solid team in a solid neighborhood, then the possibilities are endless. I would also recommend using hard money as well as cash to fund some flips in Columbus. You could really maximize your return if you have around 3 flips going on at the same time, and with 200k cash it is very doable! 

Happy Investing!

@Nathan Yarnell It is completely normal to be hesitant about purchasing your first rental. It doesn't matter what market you're in, it never goes away (especially in Columbus).I would say your cashflow door to door is where it needs to be. If you go over 200$ your setting false expectations for the market. I would say a duplex would be your best bet as well, but also stay open to SFH. SFH can fluctuate faster than duplex's in some sub-markets. Some acquire equity faster than others, plus they can be easier to cash out refi. Either way, 150-200 is a good goal to have door to door and use your own judgement. Don't trust a realtor's judgement over your own knowledge. Feel free to reach out to me if you any questions! Happy Investing!

@Diana Rosett Columbus Ohio has a growing market at the moment. Investors use several strategy's effectively in this market including BRRRR, Airbnb, Fix/Flips, etc. Financing is where you have options. If it is a off market property or distressed property, I would suggest using cash or hard money. Hard money can help you diverse your portfolio in order to optimize your door to door cash flow. If your picking up a lipstick property with minor rehab, you could possibly use OPM/private money, or a conventional loan. It just depends on your investment strategy.