What to look for when buying a fixer upper in Ohio?

[Rehaan Khan]

I'm looking to buy a fixer upper in Ohio but there are so many properties for sale there. What are some tips on what type of property to acquire and renovate that is likely to sell faster?

[Jacob Sherman]

want to be at 65% ARV to stay solid

[Rehaan Khan]

Quote from @Jacob Sherman:

want to be at 65% ARV to stay solid

I'm having difficulty finding the ARV in Ohio, areas like Cleveland, Dayton have prices all over the place. That's why I'm asking what to look for to be competitive

[Jacob Sherman]

I would connect with a local realtor . the mls would provide all of this information 

[Brian Jackson]

If unsure I would recommend catching a flight to the area and go see 10+ properties. Cleveland and Dayton are 3+ hours apart so I would probably pick on or the other. We are in the Akron area but service Cleveland as well. Cleveland is going to be more competitive that the Dayton market.

Why are you looking for a fixer upper? Do you have a contractor that you plan on using or are you figuring all of that out later?

Best of luck!

[Rehaan Khan]

Quote from @Brian Jackson:

If unsure I would recommend catching a flight to the area and go see 10+ properties. Cleveland and Dayton are 3+ hours apart so I would probably pick on or the other. We are in the Akron area but service Cleveland as well. Cleveland is going to be more competitive that the Dayton market.

Why are you looking for a fixer upper? Do you have a contractor that you plan on using or are you figuring all of that out later?

Best of luck!

 Hi Brian, I’m planning on visiting the area next week to do exactly just that. Im looking to do fixer uppers because I did it in the past in Virginia & I want to build more capital now so I can invest into rentals/new construction later. I don’t have a contractor in Ohio but I understand remodeling myself & can build a team or hire a contractor. I’d love to learn more from you. I’m finding prices to be all over the place in Cleveland & Dayton so hard for me to find good comps & analyze deals.  

[Zeke Liston]

Quote from @Rehaan Khan:

I'm looking to buy a fixer upper in Ohio but there are so many properties for sale there. What are some tips on what type of property to acquire and renovate that is likely to sell faster?

Invest in the right neighborhood and city. You'll want to get connected with a local expert who can guide you to the right area.

[David Leggett]

Hey Rehaan, it sounds like you've already done a lot of the research and know what you want and have targeted a great area to invest in.  The best thing you can do is to find an expert investment specialist agent / broker who can help you narrow down your search and help identify the best neighborhoods that you're looking to invest in to accomplish your goals.  Cleveland is one of the best cash flow cities in Ohio, but it can really go neighborhood by neighborhood and block by block in some areas on the east side, so you really want to lean on that expertise from your local agent / broker.  

[Rehaan Khan]

Quote from @David Leggett:
Hey Rehaan, it sounds like you've already done a lot of the research and know what you want and have targeted a great area to invest in.  The best thing you can do is to find an expert investment specialist agent / broker who can help you narrow down your search and help identify the best neighborhoods that you're looking to invest in to accomplish your goals.  Cleveland is one of the best cash flow cities in Ohio, but it can really go neighborhood by neighborhood and block by block in some areas on the east side, so you really want to lean on that expertise from your local agent / broker.  

 I agree! That’s what I’m hearing from a lot of experts. It’s hard to identify each block being remote but I could probably send someone out there to do a quick search for me. Thank you for your input

[Ryan Arth]

When viewing the entire metro area from satellite you will see prices all over the place. Dialing in on a neighborhood and then doing a deep dive would help you to get a better feel. And driving through that neighborhood will give you the context that pricing doesn't communicate, is the area what you expected? Does this area warrant selling improved housing, who would be the buyer, and would the property appraise if the area is mostly unimproved housing?

[Rehaan Khan]

Quote from @Ryan Arth:

When viewing the entire metro area from satellite you will see prices all over the place. Dialing in on a neighborhood and then doing a deep dive would help you to get a better feel. And driving through that neighborhood will give you the context that pricing doesn't communicate, is the area what you expected? Does this area warrant selling improved housing, who would be the buyer, and would the property appraise if the area is mostly unimproved housing?

That’s amazing insight! I see that you’re working in Akron OH. How is the market like over there? 

[Ryan Arth]

I work in both markets, as I am positioned between them. Akron is a much smaller market than Cleveland, but has similar elements, demographics and economics (in general). Being smaller, it doesn't have as many opportunities for growth, as many larger employers, and as many institutions that draw people to the region. Both metros benefit from having each other near, but Akron is much more reliant on Cleveland than the other way around. 

[Rehaan Khan]

Quote from @Ryan Arth:

I work in both markets, as I am positioned between them. Akron is a much smaller market than Cleveland, but has similar elements, demographics and economics (in general). Being smaller, it doesn't have as many opportunities for growth, as many larger employers, and as many institutions that draw people to the region. Both metros benefit from having each other near, but Akron is much more reliant on Cleveland than the other way around. 

That makes sense! How’s the seller’s market in & around Akron? It it’s suburban areas. If a property is priced right, how long does it usually stay on the market?

[Ryan Arth]

@Rehaan Khan An appropriately priced property in the suburbs does not sit on the market, especially if it is attractive to a homeowner (not just an investor). We have low supply and pent up demand, the same as anywhere else. And when they cut rates, the demand should increase as people who could afford to wait enter the market to either trade or to stop renting. 

For example, when listing houses for rent in the Akron suburbs that would be attractive as owner occupied properties, the amount of calls you get from agents and buyers asking if the client would just sell it to them. The market is hunting for more inventory, despite 7% rates.

[Regina Blake]

Hi, Ohio is a great place to invest in and the market is all of the place, and the homes sell fast. Check it out! Thanks!

[Manny Vasquez]

Rehaan - Your question is dependent on several factors, all of which are very important to consider when selecting a property you wish to flip.  These are:

1. Location, location, location. This is quite possibly the most important factor. This will give you an idea of where to be on purchase price, what you need to do to make the property similar to others in the area, and what you can sell the property for (ARV).

2. How much rehab work does the property need?  Is it a cosmetic rehab?  Is it just upgrading the floors, kitchen and bathrooms?  Is it a complete tear-down to the studs?  Will you be adding square footage?

3. The above questions leads into this one:  How much do you want to spend rehabbing the property?  What amenities do you want to include?  This question becomes very important if your are financing any of the rehab costs.  

4.  How fast do you want to rehab the property.  Will you need to pull any permits which could lengthen your rehab projects?  Again, if you are financing the rehab costs then this question becomes highly critical.

There is good money to be made in expensive neighborhoods and also in low-cost neighborhoods.  It all depends on the above questions.

I hope this helps and good luck!

[Shawn Parsh]

Rehann,

I agree with Jacob, I would lean on team members that know the markets you're looking at well. Going to the area is a great step, but you will still need members on your team that live and work in your target market. I prefer to invest locally to where I live as it eliminates a lot of potential challenges and I know the market well. Good luck. 

[Rehaan Khan]

Quote from @Ryan Arth:

@Rehaan Khan An appropriately priced property in the suburbs does not sit on the market, especially if it is attractive to a homeowner (not just an investor). We have low supply and pent up demand, the same as anywhere else. And when they cut rates, the demand should increase as people who could afford to wait enter the market to either trade or to stop renting. 

For example, when listing houses for rent in the Akron suburbs that would be attractive as owner occupied properties, the amount of calls you get from agents and buyers asking if the client would just sell it to them. The market is hunting for more inventory, despite 7% rates.

 Yes, I agree! Everyone is waiting for the rate cut but who knows when that will actually happen. Historically speaking I hear, rate cuts happen slower than increasing them. On the other hand, commercial real estate is changing the dynamics of the market as well. Interesting times!

[Rehaan Khan]

Quote from @Shawn Parsh:

Rehann,

I agree with Jacob, I would lean on team members that know the markets you're looking at well. Going to the area is a great step, but you will still need members on your team that live and work in your target market. I prefer to invest locally to where I live as it eliminates a lot of potential challenges and I know the market well. Good luck. 

I agree with you, it's important to find a good network of professionals. A good realtor who works as a team player rather than being more motivated to earn commission by closing many deals quickly and ignoring the type of deal does not help investors.