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Updated 5 months ago, 07/02/2024

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Carlos Ruffo
2
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1
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First Time Real Estate Investor

Carlos Ruffo
Posted

Hi, I’m Carlos. I’ve been thinking about getting into real estate but have been having a couple concerns before buying my first property. 

Current Situation: I am trying to househack a house in Cincinnati as I have 4 people who have agreed to live in the property that I buy. I am looking at going up to 400k for context.

Concerns:

- All of the multi families I have seen in Cincinnati are really old and would need a lot of work. As a first time buyer, I don’t think I have the skill or knowledge yet to make a purchase where I’d have to put in a lot of work

- If I buy a 5 bedroom single family, I am worried that once everyone moves out, it will be hard to find people who would want to rent out a 5 bedroom as well as I’ve heard they’re harder to sell in general. 

- I moved to Cincinnati ~2 years ago for work so I don’t know what areas of Cincinnati are relatively safe and would be ideal for renting out in the future because ideally I would want to keep this property long term and use it as a rental property.

Any suggestions would be amazing. I am new to this and I also feel like I’m being held back due to being worried I’m making a wrong choice maybe because I’ve never purchased a property before… idk but would love any input! Thank you in advance! 

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Replied

First property if you have these concerns buy small and low

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Hey Carlos! Great news is you are asking the right questions about your potential property!

When I am looking to purchase a property, I like to have multiple options for income and multiple exit strategies, incase something happens to your tenants or the area. 

I find data on free sites like Zillow extremely helpful for days on market for certain homes, and it allows you to sort by bedrooms to see how long a potential property may sit on the market at this moment (great for comping rent prices in the area as well)

if I were to live in the property, I would take advantage of the FHA low down payment option to keep cash in my pocket for Reno costs

Hope this helps! And good luck on your journey!


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See if you can buy in a joint venture with an experienced investor

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Alecia Loveless
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#5 General Landlording & Rental Properties Contributor
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Alecia Loveless
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#5 General Landlording & Rental Properties Contributor
Replied

@Carlos Ruffo if it's not a SFH you may be hard pressed to find a vacant 4 unit property unless something is wrong with it. I don't know this market specifically to make that assumption but in my market if you're buying a 2-4 unit property the seller might leave 1 units it vacant for owner to occupy but there's usually not totally vacant property.

  • Alecia Loveless
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    Hi Carlos,

    It's great to hear you're considering getting into real estate and that you have potential tenants lined up! Here are some suggestions and insights based on your concerns:

    1. Condition of Properties: It's understandable to feel hesitant about purchasing older multi-family homes that need a lot of work. As a first-time buyer, you might want to look for properties that are in better condition to minimize immediate repair costs and effort. Consider newer properties or those that have been recently renovated. You could also look into getting a detailed inspection done to understand the exact scope of any necessary repairs before making a decision.

    2. Single-Family Home Concerns: Your worry about renting out a 5-bedroom home once your current tenants move out is valid. Larger homes can sometimes be more challenging to rent out or sell. One strategy could be to look for a property with flexible spaces that can be easily adapted for different uses (e.g., converting a bedroom into an office or studio). Additionally, you might consider properties in popular rental areas where larger homes are in demand.

    3. Location in Cincinnati: Since you're relatively new to Cincinnati, it might be helpful to consult with a local real estate agent who has a deep understanding of the area. They can provide insights into which neighborhoods are safe and have strong rental markets. Some areas to consider might include Hyde Park, Oakley, and Mount Lookout, known for their desirable living conditions and strong community presence.

    4. General Advice: To ease your concerns, take your time to thoroughly research and evaluate each potential property. Don’t hesitate to seek advice from experienced real estate investors, join local real estate groups, and attend workshops or seminars. Additionally, consider working with a realtor who specializes in investment properties; they can offer valuable insights and help you navigate the process more confidently.

    Remember, it’s normal to feel uncertain when making your first property purchase. Take your time, do your due diligence, and trust your instincts. Best of luck in your real estate journey!

    Thank you
    Jason Giomboni Team  - Exp Realty

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    Samantha Fedor
    Property Manager
    • Property Manager
    • Cincinnati, OH
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    Samantha Fedor
    Property Manager
    • Property Manager
    • Cincinnati, OH
    Replied

    Hey Carlos, great questions for sure! Are you currently connected to either a realtor in the area, or other investors? I am here in Cincinnati, have lived here for over 10 years now, and it's even hard for me to decipher good neighborhoods sometimes because sometimes it's neighborhood by neighborhood, but it can also be street by street!

    I would recommend attending some real estate investing events here in Cincy to connect with people are are actually out and about in Cincy. I will DM you if you would like to chat further.

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    True Home Ohio Property Management
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    Jonathan Greene
    Professional Services
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    Jonathan Greene
    Professional Services
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    • Mendham, NJ
    ModeratorReplied

    You are focused on the wrong things. You don't buy your first property because other people say they will live with you. What if they change their mind? What if they move out right away? Get your finances in order, get a pre-approval, make sure you can spend that amount and still have 15k in reserves and solid income before you buy anything. 

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    Zen and the Art of Real Estate Investing
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    Sam McCormack
    Agent
    • Real Estate Agent
    • Cincinnati, OH
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    Sam McCormack
    Agent
    • Real Estate Agent
    • Cincinnati, OH
    Replied
    Quote from @Carlos Ruffo:

    Hi, I’m Carlos. I’ve been thinking about getting into real estate but have been having a couple concerns before buying my first property. 

    Current Situation: I am trying to househack a house in Cincinnati as I have 4 people who have agreed to live in the property that I buy. I am looking at going up to 400k for context.

    Concerns:

    - All of the multi families I have seen in Cincinnati are really old and would need a lot of work. As a first time buyer, I don’t think I have the skill or knowledge yet to make a purchase where I’d have to put in a lot of work

    - If I buy a 5 bedroom single family, I am worried that once everyone moves out, it will be hard to find people who would want to rent out a 5 bedroom as well as I’ve heard they’re harder to sell in general. 

    - I moved to Cincinnati ~2 years ago for work so I don’t know what areas of Cincinnati are relatively safe and would be ideal for renting out in the future because ideally I would want to keep this property long term and use it as a rental property.

    Any suggestions would be amazing. I am new to this and I also feel like I’m being held back due to being worried I’m making a wrong choice maybe because I’ve never purchased a property before… idk but would love any input! Thank you in advance! 


     Shooting you a message now!

    • Sam McCormack

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    Anderson S.
    Lender
    • Lender
    • Brooklyn, NY
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    Anderson S.
    Lender
    • Lender
    • Brooklyn, NY
    Replied

    Use a site like Propwire to find an off market home in your targetted area, if you feel inexperienced about the renovation talk to friends, coworkers, to find contractors that are trustworthy (key part) to partner with to make the fixes needed. Start small and build from there!

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    Brooklyn Funding Group
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    Marcus Auerbach
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    Marcus Auerbach
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    You are worried about the wrong things. Forget about the people that have to agreed to move in with you, there is no shortage of renters, as long as you have a decent property to offer. Keep in mind that about 40% of the population rents.

    I agree with you that buying a run-down property requires experience, the biggest concern is that you don't get enough discount for the condition. Buying a quality property (location and condition) is by far a safer choice. You'll never have to worry about finding tenants if you own a place that is desirable.

    I can't agree with the "buy small and low" comment. In real estate price and risk have an inverse relationship: the lower the price, the higher the risk. You pay a premium for quality properties, because they are low risk.  

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    On Point Realty Group - Keller Williams
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    Samuel Diouf
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    Samuel Diouf
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    Replied

    I would start with a turnkey duplex that has been renovated. Get a 2 or 3 bed and rent out the rooms to your people. If they move out, you can rent the vacant side to a tenant quickly, as the rental demand in Ohio is very high right now. 

    I can send you a graded map of Ohio that will help with determining the areas. 

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    Reafco - Samuel Diouf
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    Bryon Andrews
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    Bryon Andrews
    Agent
    • Real Estate Agent
    • Saint Paul, MN
    Replied

    I think @Marcus Auerbach made a great point. You are worried about the wrong things. 

    You can only learn so much by reading books and listening to podcasts. You will learn so much more by buying your first rental property and gaining experience. Do not worry about hitting a "homerun" on your first deal. If you can consistently make base hits, you will be just fine. 

    • Bryon Andrews
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    Jordan Fiore
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    • Real Estate Agent
    • Cincinnati, OH
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    Jordan Fiore
    Agent
    • Real Estate Agent
    • Cincinnati, OH
    Replied

    I think all these worries are very valid. This is a big purchase. Having a trusted real estate investor friendly agent would cure a lot of these worries. They usually have a team of trusted contractors for you to choose from, obtain quotes during the due diligence period on any issues, for you to make the right choice. There is a big difference in quality from the older late 1800's to early 1900's wood/vinyl side buildings compared to the 1930's and earlier brick built properties. The knowledge of the specifics of these buildings just comes with experience. I would say to start simpler on your first property, 1940's build or newer, brick build, 2-4 unit(that was actually built as a multifamily to begin with), C+ or better area, etc.

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    Marco Fiore
    Agent
    • Real Estate Agent
    • Cincinnati, OH
    53
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    Marco Fiore
    Agent
    • Real Estate Agent
    • Cincinnati, OH
    Replied
    Quote from @Jordan Fiore:

    I think all these worries are very valid. This is a big purchase. Having a trusted real estate investor friendly agent would cure a lot of these worries. They usually have a team of trusted contractors for you to choose from, obtain quotes during the due diligence period on any issues, for you to make the right choice. There is a big difference in quality from the older late 1800's to early 1900's wood/vinyl side buildings compared to the 1930's and earlier brick built properties. The knowledge of the specifics of these buildings just comes with experience. I would say to start simpler on your first property, 1940's build or newer, brick build, 2-4 unit(that was actually built as a multifamily to begin with), C+ or better area, etc.


     Couldn't agree more!

    • Marco Fiore