All Forum Posts by: Patrick Drury

@Jason G Goepper
I live and invest currently in Columbus OH. If you are looking for more of a growth market, Columbus would be a better pick. It's a solid hybrid of cash flow and appreciation. 

 There is a lot of multi-family in Columbus. More investors are going after multi-family vs Single-family. That's a whole discussion on its own why invest in multi vs single family. They each have pros and cons. I would recommend Multi-family if it fits in your budget. The pros to multi-family would be that you have more units which will soften vacancy. If one unit is vacant in a single family, you are 100% vacant. The nice thing with a 4-unit is that 1 vacancy is 25% vacancy and you can still be collecting rent from the other 3-units while turning one unit. The other pros would include typically higher cash flow than a SFR and consolidation. By consolidation, I mean your properties are located in the same location vs 4 single families spread out. This can be a big upside if you own and manage a lot of units or if you are trying to 1031 some of your properties to buy something else. Selling a 4-unit is going to be easier than selling 4 separate SFR to pull off 1031. The upsides to SFR will be where Multi-family lacks. Typically, tenants will stay longer, tenants will treat the property as their home since it's a single-family, it has a lower price of entry (compared to multi-family in the same neighborhood), and there is 1 tenant to deal with in SFR vs multi-family which is exponentially more (this starts to add up if there are works requests), and lastly, in a SFR there are only 1 of each CAPEX items. In a duplex, you have twice as many mechanicals like 2 AC units, 2 electrical panels, and 2 furnaces, which will result in more maintenance. 

@Mario Cruz
That's a great plan and is an excellent way to get started in real estate. It just depends on what the market is like in terms of price points where you are looking to invest. I suggest you ring off a couple of areas you are interested in, and some local agents/ local investors can chime in and give their 2 sense on if your price range is realistic compared to what things are trading for on the market today. 

@Nadine O.
I think you are definitely on the right track with Ohio. I would recommend checking out Columbus OH above all the others. It's a great market that has been seeing a lot of growth over the past few years. It has lots of job opportunities and population growth. As for what the market is like in terms of investing, it's a nice balance of cash flow and appreciation. 

@Naeem Barbour
Depending on how much capital you have you could do any number of things. You could buy the property with hard money. You could partner with someone 50-50 depending on how you structure the relationship and you split the down payment with them for a hard money loan or maybe cash. You could try to find someone to loan on the property conventional (depending on the condition).

@Frankie Paterno

I would recommend checking out the Cincinnati OH market. You can definitely find deals to meet what you are looking for there. 

@Shera Ewing
I would recommend getting your real estate license over just wholesaling, that's my opinion though. Cincinnati and Cleveland would be solid markets to wholesale deals if you are dead set on wholesaling. 

@Nathan Zierer    
Definitely buy something that you can rehab and add value to that's where the money is made in multi-family. If you are investing locally, depending on your knowledge and skill level, you can take on more extensive rehabs that out-of-state investors won't have the resources to touch typically. 

@Alicia Marks
I have noticed comps are still getting set every week here in Columbus, OH, with no regard to rates. Even though rates are a lot higher in the 6, 7 and even 8 range depending on the loan product. 

@Sebastian Marroquin
I think you answered your own question. If you are looking for more passive income and want cash flow, look towards the Midwest, where you can get better cash flow with the capital you have. I live and invest in Columbus, OH. Columbus is a solid hybrid market with good cash flow and appreciation. Also, there are lots of economic drivers here in Columbus which will include Intel, Hyperion is moving to Columbus, Ohio state university, Battelle, HQ of L-Brands, Wendys, White castle, Chipotle, and Hunnington.