Questions for Ohio agents/investors and Class A, B, C in your markets

[Becca F.]

I'm an investor in the Bay Area and Indianapolis metro area. I've seen a lot of posts suggesting to beginning investors, many of them Californians that Ohio is a great market, particularly with Google, Intel, Honda, and Wells Fargo to Columbus. I've heard that Columbus is "the new Silicon Valley" of the the Midwest. I'm actually impressed by that although I don't plan to invest in the Midwest anymore. 

I bought a Class A (nice Indy suburban home with excellent schools) in 2013 and it's appreciated (doubled in value from 2013 to 2021) and I'm positive cash flow because of my low interest rate, 3.875%. I actually did a cash out refi during COVID so I would cash flow more if I had just done a rate and term refi. 

I bought Class C in Indy in 2023 (move in ready) and am losing money each money on what was supposed to cash flow on paper just barely $176 if no repairs were called in. Some of the comments that I've seen are 1% cash flow. Where are these properties and would they cash flow buying in 2024 (not 2020 or 2015)? 

What would be the price ranges of Class A, B and C properties in your markets of move in ready or something with light repairs (where a buyer could get a conventional loan, not a distressed property)? My opinion is that OOS investors, especially ones that are inexperienced shouldn't do BRRRRs. I've done a local renovation and I wouldn't do a BRRRR in Indy after a few attempted offers.

I'm not trying to be a jerk but truly trying to understand where this cash flow is coming from buying in 2023-2024, although I can understand with Columbus I could see it appreciating with those companies moving there. I appreciate the feedback, always trying to help out my California investor friends. 

[James Hamling]

Quote from @Becca F.:

Quote from @Jimmy Lieu:

Have tons of examples of deals that hit the 1% rule and positive cash flow. Happy to connect and to answer any questions you may have.

Hi Jimmy, are you able to post a specific example on here of a property that hits the 1% rule and positive cash flow buying in 2023 and 2024 (not in 2021 or previous years) with an LTR?.......

Becca, maybe Jimmy is just needs someone to show him how it's done........ 

St Cloud MN Duplex, list/purchase price $259,900
market rents $1,610 per unit BUT yes, if one really wanted to sec8 income standards are $1,957 per unit so one could go that direction if wanted be. I used the lower of rent amounts for analysis. 
https://www.biggerpockets.com/analysis/rentals/ee5f6928-93ce... is link to the BP Calculation on it. 

Here is the rental analysis data on how we came to $1,610 per unit and, when manually comp we find that's dang accurate for 4br. 

And last but not least, the sale listing. 

 And for any who question how legit my info is on sec8 Payment Standards, here ya-go, the current 2024 rates in this area. 

So ya-see Jimmy, that's how we have a FACT-BASED conversation on "I can land 1%+ deals no problem"........