All Forum Posts by: Marc Rice

Hello BP community - any one lately come across new construction properties for investors in Columbus OH, most of these builders in Columbus refrain from selling it to investors and only entertain first time home buyers or if you plan to make it as primary home to live in. (Rockford, MI, Pulte, Ryan homes) - any one know of builders who are investor friendly in Columbus?

sachin

Hi Everyone,

As a first time out-of-state investor, I plan to do out-of-state investing in Columbus, Ohio. I found that normal duplexes or SFHs in C area do have cash flow, but the numbers didn't seem worth investing. For example, a duplex (in 1920s) ~ 240k, $2600 total rents with 20k rehab and 5% vacancy, 8% management and 12% maintenance, 1.37% property tax, $960 insurance, 25% downpayment and 7.25% interest rate. The overall cash on cash return is only 5.73% (with principal is 7.84%). It's way below the average return of qqq (12.5%). I want to know in this case if it is still worth investing in Columbus Ohio or if there is anything wrong in my calculation/expectation. I found that the return will be more than 12.5% when the interest rate <5%. Perhaps I should wait till the interests go down? Please share your thoughts and experience and what are the right investments to look at Columbus Ohio. Thanks a lot!

My federal tax return worksheet shows a net passive loss from investments rental properties. This is because the net loss on my NY properties (where I reside) override the net rental income on my Maple Heights properties in Ohio.  I therefore report zero rental income on the federal return because I am not a real estate professional and do not deduct the net loss.  But Am I permitted to net my NY rental loss against the net gain on my Ohio properties on the Ohio state return??  H&R Block tax program seems to think I can because the starting point is the Federal return when allocating income to Ohio. My federal rental income is zero and therefore nothing to allocate to Ohio. Obviously I still intend to file an Ohio state return even though there is tax owed, 

HA! That's what I thought.

I keep hearing they want to make OHIO the Silicon Valley of the midwest.

Where are they building all of these foundries and factories for that?

Quote from @Marc Rice:

Yeah I have a few depending on if you're buying 1-4 units, 5+ units, or needing a HELOC. I can PM you them.

Marc can you connect me with any credit unions you have that will loan on a 3-unit townhouse in Cleveland. Looking for best rate, no points. Conventional or DSCR, doesn’t matter. Have a property about to go under contract. Thanks. 

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Quote from @Samantha Monjure:

Hello, BP!

I'm a newer agent in CO looking to partner with investors and flippers as I love the transformation and revitalization flipping can bring to a community! I also own my own photography business and work for a staging/ Property management company! So we're a one stop RE shop!

I've been reaching out to owners in foreclosure, and looking for off market properties, reaching out to other agents and want to see if BP can be a good resource to find motivated sellers and pocket listings to find deals for my current clients, and well as connect with future potential clients! 

Any tips, advice, or connections would be fantastic! I look forward to working with you all!!

 You'll want to get a list of sellers of the properties you want to buy from, skip trace them, then call/text them.

I've begun that process and have reached out with no success so far. I'm sure it'll take some time on this, but not sure if I should focus on continuing to reach out to the same homeowners, although I feel that can be saleslady and annoying, or if I should continue finding new homeowners and reaching out!

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Quote from @Matthew Becker:

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Quote from @Nick Wimmel:

Hello BiggerPockets community! I’m currently on the hunt for my next real estate deal and have narrowed my focus to Columbus, Ohio. I’m working with an agent but am looking for assistance in sourcing potential deals, both on and off-market. My primary interest is in small multifamily properties (1-4 units) priced under $300,000. Any help or suggestions would be greatly appreciated!

 You'll need to make sure your agent is finding off market deals. My team has been doing this for 5+ years and it's not easy. We have 5+ people cold calling at all times.

 I would market and cold call as well.  Automatic VM and Text are good, too.  Most good deals to investors before they hit the market. 

 Absolutely, I've never done auto VM due to grey area. Have you had good success with that? The cold texting software seems to be hit or miss, are you having good results there?

We have had good success but yes it is hit and miss but cheap compared to mailers. 
mailers still work best.  I do both. 

 That's great!

 I think if you have a couple grand put it into marketing and see what hits.  You only need one lead to make the money back.  One lead should make you $20K to $50K easy.  

Quote from @Marc Rice:

Quote from @Matthew Becker:

Quote from @Marc Rice:

Quote from @Nick Wimmel:

Hello BiggerPockets community! I’m currently on the hunt for my next real estate deal and have narrowed my focus to Columbus, Ohio. I’m working with an agent but am looking for assistance in sourcing potential deals, both on and off-market. My primary interest is in small multifamily properties (1-4 units) priced under $300,000. Any help or suggestions would be greatly appreciated!

 You'll need to make sure your agent is finding off market deals. My team has been doing this for 5+ years and it's not easy. We have 5+ people cold calling at all times.

 I would market and cold call as well.  Automatic VM and Text are good, too.  Most good deals to investors before they hit the market. 

 Absolutely, I've never done auto VM due to grey area. Have you had good success with that? The cold texting software seems to be hit or miss, are you having good results there?

We have had good success but yes it is hit and miss but cheap compared to mailers. 
mailers still work best.  I do both. 

hows rental market in columbus ohio for investors? is there any cash flow? also what part of columbus ohio is considered good, low on crime, fast developing yet still affordable to buy a house? 

I'm 26 and living with my parents so I've saved 120,000 and am trying to become financially independent. I found a 325,000 quad that's fully occupied grossing "over 5,000 per month" in the Mt.Pleasant Neighborhood of Cleveland Ohio. Seems to be in good condition from the pictures and I have enough that I could pay for some CapEx if it needs some. But that neighborhood is not good and my parents are telling me I'm crazy for thinking about risking all my money in a dangerous part of town. My thinking is that with a price to rent ratio like that I could hire a property manager so I don't have to frequent the area and am a couple house hacks away from being able to cut back to part time. Am I looking at this with rose colored glasses?