Tennessee or Ohio?

Question

Hello. Haven't posted for a while. I'm still very new to investing and I was looking at both Tennessee and Ohio for a buy and hold or BRRR and I'm having difficulty deciding which one would be better to start with. Can anyone weigh in?

Funds are a bit limited right now- I have a chunk of money currently tied up in litigation (not real estate related and I can't really go into any details) so I was trying to wait until that was finished but it's taking longer than I expected so I'm looking to see if I can get something going in the meantime.

Alfath Ahmed · Answer

The Columbus market is great for real estate investors to get started. There are areas that I recommend in the Columbus market that I personally invest in like Old North, Old Town East/King Lincoln Bronze Ville, Merion Village, Driving Park, North Linden, Hungarian Village, Bexley, and North Hilltop. These are all great areas that I would look into.

Tommy Parker · Answer

I'd recommend Ohio. Places like Columbus and Cincinnati are places that I've looked into and have had some friends invest in.

Account Closed · Answer

Your comment: "I have a chunk of money currently tied up in litigation"

In my humble opinion, you don't buy an asset during litigation with uncertain outcomes. Get your attorney's advice.

Shane Faherty · Answer

Hi @Beth Blankenbicker

I second @Peter Dorinsky in that Columbus is a great area to invest in. With all of these tech companies investing billions into the area and properties that are able to be bought in the $250k-400K range they are going to cash flow. Prices will appreciate very well as builders have struggled to keep up with demand. I've helped a couple of my investors with finding cash flowing properties. If you are in need of a lender in Tennessee or Ohio I am licensed in both!

Jayson Cain · Answer

Hi @Beth Blankenbicker,I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals. I've started looking at Columbus because my business partners have found success doing Mid Term Rentals there and the returns are solid. I’ve also helped other investors with their DSCR loans and flip projects in Columbus. Happy to share my experiences and chat with you more if you're interested.

Beth Blankenbicker · Answer

I will listen to that podcast- it is wise to learn from others mistakes

Sam McCormack · Answer

A good city with limited funds could be places like Cleveland or Cincinnati. Cincinnati I would normally recommend having 50k to start. 40k for 20% down and 10k for any closing costs (on a 200k SMF property). You can also ask for seller concessions (up to 2% to be exact). I am unsure of Cleveland but Cincinnati/northern Ky, 200k can get you your next investment property. Let me know if you have any questions

Grant Schroeder · Answer

@Beth Blankenbicker TN all the way! Too many folks on here pushing OH and oversaturating it.

Patrick Drury · Answer

@Beth BlankenbickerI would recommend looking at Columbus, OH. You can get good cash flow and solid appreciation at the same time. Columbus has a lot of job opportunities and population growth. Especially with Intel coming to Columbus as well as Hyperion, which is a company that makes hydrogen fuel cells. Columbus is home to the HQ of Chipotle, Wendys, White Castle, L-Brands, and Hunnington. Columbus is also home to OSU, which constantly develops real estate, employs lots of jobs, and attracts students from the US and internationally to attend. On top of all of that, it boasts one of the best college football teams Ohio State Buckeyes, which is very well known and has a cult following, and attracts a lot of people to the games. If you don't care about appreciation at all you should look at Cleveland, OH. Cleveland has a bit higher cash flow than Columbus in exchange for the appreciation.

Jimmy Lieu · Answer

Hi Beth, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Tennessee or Ohio?

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