All Forum Posts by: Lucas J Holt

I love the data and the gentrification of Franklinton (the bottoms).  I wonder if anyone living in those $200k+ homes would survive a walk up and down their street?  

Data is one thing but "the bottoms" is still one of the most crime ridden and most dangerous places in Columbus.

I rode by a house for sale for over $250k on Sullivant Ave and it already has graffiti on it.  Next week, hookers will be sitting on the porch if it rains.  
  

I digress, but I have nothing but praise for anyone with the kind of risk tolerance to invest more than $20 in that neighborhood.  

I invest in Pickaway County, A secondary market which may be a little less rent but they still have several inexpensive homes for sale. 

Circleville has a lot to offer as far as new employers for working class folks and comes in a package without some of the risks franklin county has. 

I would say before you acquire 1,000 units, you'd have to buy one.  Buying in the areas you mention may be negative cash flow.  Then that could mean buying #2 might be even more difficult.  

I would say at this point, read the books, listen to the podcasts, follow the forums, save and network.  Your strategy may change just a bit.   

Can I check it out even if I'm not in position to do any deals at the moment?

Just to piggy back on what Remington said:  don’t avoid any of them. There are very few places in Columbus that would be considered too dangerous to visit. There are great places to invest in Whitehall and the Hilltop. I would keep an open mind. You’ll know if you are in an area you aren’t comfortable with. My qualification for this opinion:  I’ve been in law enforcement in the Columbus area for 18 years. If you are working with a realtor, convey to the them what your strategy is and what you’re looking for and they should easily be able to show you what you may be interested in. 

Happy hunting. 

I give you guys some serious props, having the stones to invest your money in the bottoms.  I wish you the best of luck.

Bedrooms and schools. There is a fairly huge disparity between Columbus public schools and everywhere else. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $74,900
Cash invested: $22,000

SFH Paid $74,900. $15k Down and a few thousand in closing, renovation. New floors throughout, new paint, new bathroom toilet, vanity and shower insert. Market Rent is $915. Renting to Family for $800/month

What made you interested in investing in this type of deal?

I was looking for something more rewarding than the stock market.

How did you find this deal and how did you negotiate it?

MLS through a realtor who is also an investor. We made an offer for asking price the same day it came to market. The owner was killed by a drunk driver a few months prior and the family put the home up for sale.

How did you finance this deal?

Conventional Loan 20% down, 30 year mortgage

How did you add value to the deal?

fresh paint throughout. New bathroom toilet, vanity, shower insert. Got rid of all the carpet and laid LVT throughout the first level. Got rid of the stinky carpet in the basement and painted the floor. New Fridge and painted the existing cabinets. New doors on the bedrooms. Updated the drainage, spouting, rain gutter system.

What was the outcome?

I am sure we've added value but this is a buy and hold. We are renting to family for now at under market rent.

Lessons learned? Challenges?

I only did a small amount of work myself but next time I wont do any of the work. I will also make more of an effort to get a better initial deal and pay less for the property.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Cindi Watkins in Pickaway county Ohio is also a REI and was great to work with. Originally I was working with PennyMac as my lender and found that they had not been forthcoming about the details of the loan and I had to expedite financing. I went with Wells Fargo and I am very happy with them.

Well I sounds like northeast Ohio has some really amazing deals right now. Happy hunting, guys!

I guess my other concern would be the rent amount you reference. $1050 in Columbus shouldn't get you into a Class B neighborhood. Not even a small apartment. I would say there are quite a few SFH in D class neighborhoods renting for $1050 and up in Columbus.