I am a junior undergrad looking for the best strategy and location in midwest
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Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
2yQuote from @Vinay M.:
Hi there,
I am currently a third year student in my undergrad at a university in Toronto, Canada. I am originally from the midwest and I plan to go back (I don't know exactly where yet and am flexible) I wanted to get advice on a couple of things
1. What are the best places to own a rental property in midwest. ( I was thinking Cincinnati)
2. How should I approach saving for and investing in a rental property, (is seller financed a smart option)
3. How can I measure the ROI and other factors of a property to manage my risk the best and invest smartly?
4. How can I find a good property management company that is trustworthy and will give me maximum income?
5. Looking to talk to a pro midwest investor with experience.
It will depend on your budget, risk tolerance, and timeline but Toledo is one of the better markets due to affordability and housing demand.
2. How should I approach saving for and investing in a rental property, (is seller financed a smart option)
Save, Save, Save, find money partners, save, make sure your credit is good, save, and take advantage of seller finance opportunities when available.
3. How can I measure the ROI and other factors of a property to manage my risk the best and invest smartly?
The 1% rule is pretty popular among investors. Toledo properties hit this rule quite consistently despite high interest rates.
4. How can I find a good property management company that is trustworthy and will give me maximum income?
Referrals. I can send you some
5. Looking to talk to a pro midwest investor with experience.
Present!
11 Replies
- Investor · PA · Member since 2013 · 1k+ posts · 602 votes2y
1. OH might be OK but so is PA IMO
2. Seller financing is the best option in this interest rate environment. Best to get short term selling financing then optionally make some updates and then sell the property with long term seller financing.
3. ROI is simply amount you have coming in over the amount you have invested. Ideally you want at least 20% yearly. I don't really look at any other metric.
4. You don't need a property manager but you might need a loan servicer and RMLO
- 2yVinay M.Member since 2023 · 7 posts · 11 votesOP
Thank you so much Jaseem, I really appreciate it. Two follow-up questions: if interest rates drop in the future is it better to go to a major bank? Also, I also wanted to ask if you would still recommend a property manager if I'm living out of state and away from the property? Where did you find reliable loan servicers and RMLO's
- Investor · PA · Member since 2013 · 1k+ posts · 602 votes2y
This works better for out of state than a rental because you are just a lender and don't necessarily need a team or a property manager. Someone to put a lockbox on and take pictures (or video) should be enough typically. Bank loans usually won't work out unless they are unsecured loans because the bank might call the loan due when you seller finance it rather than lease it.
- 2ySamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Personally, I invest in Columbus. I believe there will be high appreciation here, as many large companies are investing money in our area such as Intel, Google, and Amazon.
If you're looking for more cash flow and less appreciation, Cincinnati and Cleveland are good options as well.
Reafco - Samuel Diouf528 Reviews - Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes2y1. What are the best places to own a rental property in midwest. ( I was thinking Cincinnati)
Quote from @Vinay M.:
Hi there,
I am currently a third year student in my undergrad at a university in Toronto, Canada. I am originally from the midwest and I plan to go back (I don't know exactly where yet and am flexible) I wanted to get advice on a couple of things
1. What are the best places to own a rental property in midwest. ( I was thinking Cincinnati)
2. How should I approach saving for and investing in a rental property, (is seller financed a smart option)
3. How can I measure the ROI and other factors of a property to manage my risk the best and invest smartly?
4. How can I find a good property management company that is trustworthy and will give me maximum income?
5. Looking to talk to a pro midwest investor with experience.
It will depend on your budget, risk tolerance, and timeline but Toledo is one of the better markets due to affordability and housing demand.
2. How should I approach saving for and investing in a rental property, (is seller financed a smart option)
Save, Save, Save, find money partners, save, make sure your credit is good, save, and take advantage of seller finance opportunities when available.
3. How can I measure the ROI and other factors of a property to manage my risk the best and invest smartly?
The 1% rule is pretty popular among investors. Toledo properties hit this rule quite consistently despite high interest rates.
4. How can I find a good property management company that is trustworthy and will give me maximum income?
Referrals. I can send you some
5. Looking to talk to a pro midwest investor with experience.
Present! - 2yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Vinay M.:
Hi there,
I am currently a third year student in my undergrad at a university in Toronto, Canada. I am originally from the midwest and I plan to go back (I don't know exactly where yet and am flexible) I wanted to get advice on a couple of things
1. What are the best places to own a rental property in midwest. ( I was thinking Cincinnati)
2. How should I approach saving for and investing in a rental property, (is seller financed a smart option)
3. How can I measure the ROI and other factors of a property to manage my risk the best and invest smartly?
4. How can I find a good property management company that is trustworthy and will give me maximum income?
5. Looking to talk to a pro midwest investor with experience.
It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.
As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland. - Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes2y
Hey Vinay, this will generally depend on your specific goals. While your focus on Cincinnati is great, there are other strong contenders in the Midwest. Columbus, for instance, has rising property values, making it a great market for long-term buy-and-hold strategies or even property flipping. On the other hand, Cleveland offers attractive rental yields and entry points, making it ideal for investors prioritizing cash flow.
For financing, aim for a 20% down payment to minimize loan risks. It's essential to develop a budget, automate savings, and explore potential side hustles. While alternative options, such as a lower down payment, can be considered, be cautious of potential downsides like higher interest rates and limited repayment flexibility. It's advisable to explore traditional mortgages with competitive rates as a primary option
As for finding a PM, try to chat with their actual clients if you can do so. Ask for feedback that they might be able to provide, confirm things like:
1. How fast do they fix stuff?
2. How much do they charge for repairs?
3. How quickly do they find new tenants?
4. Have they ever had a property sit empty for a long time?
With these, you'd be able to make informed decisions about your REI journey! If you'd like to know more, let's connect. I'd be happy to share and help out. - 2yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesHi Vinay, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!
Quote from @Vinay M.:
Hi there,
I am currently a third year student in my undergrad at a university in Toronto, Canada. I am originally from the midwest and I plan to go back (I don't know exactly where yet and am flexible) I wanted to get advice on a couple of things
1. What are the best places to own a rental property in midwest. ( I was thinking Cincinnati)
2. How should I approach saving for and investing in a rental property, (is seller financed a smart option)
3. How can I measure the ROI and other factors of a property to manage my risk the best and invest smartly?
4. How can I find a good property management company that is trustworthy and will give me maximum income?
5. Looking to talk to a pro midwest investor with experience.
Jimmy Lieu, Red 1 Realty4.9120 Reviews - Real Estate Agent · Austin, TX · Member since 2022 · 121 posts · 67 votes2y
Great to hear you're looking into investing soon!
1. From everything I have heard/read, Ohio in general is a good and affordable place to be if you want to invest in the midwest, infact it seems quite a bit of the region makes sense. So maybe you can be a bit picky and go where you want instead of really need to because of money.
2. While you are in school still, just be smart about your expenses and be frugal. Enjoy college and don't completely miss all the opportunities... just be smart set a budget and stick to it. I would have a high-yield savings account if you don't already and just let that grow in the meantime. Seller finance might make sense depending on what kind of property you want and what kind of strategy you are looking to do. Obviously, you're income will weigh into that as well.
3. Use the calculators on BP and log them all, compare them, and run the numbers in every way possible from realistic to worst case scenario and that will get you a clearer picture of what will work. I would recommend (as will a lot of others) beginning by house hacking, it's the best way to learn how to own a property, manage and save money.
4. In regards to my last sentence in #3, you wouldn't need a property manager. But if you buy a property you won't be in, you will just need to contact all that you can and ask about their services and costs and have a conversation with them. No real secret way to do that.
5. Sorry... I would not consider myself a pro midwest investor LOL but if you are ever interested in Texas, I would love to help out!
I hope this helped and got you thinking about other things. Keep up the good work!
- 2yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
Hello Vinay, it's great that you're looking into real estate investing in the Midwest. I've found Ohio to be a solid choice, especially in cities like Columbus. The reason I'm a fan of Columbus is because it's been experiencing impressive growth, thanks in part to tech giants like Intel, Meta, Amazon, and Google setting up shop there. This has boosted property prices and attracted more people to the city for job opportunities, which is fantastic for rental property investors. Personally, I also have investments in Cleveland and Dayton, so those are worth considering too.
- Lender · Manhattan Beach, CA · Member since 2017 · 423 posts · 268 votes2y
Hi @Vinay M.,
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.
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