Picking a market (Columbus, Dallas, Chicago)
Hello everyone,
My sister and I are looking to purchase a property to potentially househack. We are currently located in Houston but my sister will be relocating to Columbus, OH for her residency for 3 years. On the other hand, i am flexible as I work remotely.
Given this situation, we thought about buying a property in Columbus, Oh and been looking but we haven't been able to find a deal we like. And I feel a bit uneasy about holding a property for 10 years to see the profit esp when I wouldnt be living there. Am I overthinking this?
So I started looking at other markets like Dallas and Chicago as those are potential cities that my sister will be relocating to after 3 years. Since I have more flexibility and do not want to live in Ohio, i am thinking that I will try to find a deal in Dallas or Chicago and when she is done with residency, we can continue to build equity and live together. Dallas has good appreciation prospect and seems to be growing and growing. And it would be easier to drive to Dallas to check it out.
Chicago, on the other hand, I like that it's a bigger city but also seems like a lot of the houses I am seeing are very outdated and requires fixing which i have no experience in at all. However, we do like the urban lifestyle better.
It's a bit overwhelming trying to pick a market and I assume I can buy in Columbus first and use the quity to buy second one in other cities. However, It seems like the prices are quite inflated and I am not sure how to make a good decision. So I wanted to get some help and wisdom in navigating what would be the best path forward. Appreciate it!
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#2 Tax, SDIRAs & Cost Segregation Contributor
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- Chicago, IL
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#2 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Chicago, IL
As a Chicago investor, I wanted to chime in. I think it’s a great place to invest but there are some pros and cons:
Pros:
1. Abundance of 2-4 unit housing stock which is great for house hacking in particular.
2. Large job market meaning lots of qualified tenants
Drawbacks:
1. Property taxes are high here so this has to be factored into the numbers.
2. Old housing stock - while well built it does require fixing up in many cases.
3. Regulations - they are very pro-tenant friendly.
A lot of things to consider but I think Chicago is one of the best cities in the US and will continue to be great for many years to come.
- Aaron Zimmerman
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