Out of state investor looking at Cincinnati

[Jason Evans]

I am a brand new investor that lives in Boise, Idaho and I am looking to buy a small multi family (2-4 door) rental in Cincinnati, Ohio.  I have $25,000 and a pre-qualification from my national bank for a loan.  I have been looking at properties from $50,000 - $100,000 and have found a few that look promising from my newbie perspective.  I know that being out of state it is vital that I find a strong property management company and a good realtor that works with investors.  I am looking for any advice that could help me take the plunge in an educated and well informed way.  If you live or invest in Cincinnati I would love to hear from you as your perspective could be an extraordinary benefit.  Thanks in advance. 

[Stephen Herbert]

Hi Jason - 

I am wrapping up a house we are flipping in Cinci right now, all while living in SF. I have not seen the house, and that comes with a certain degree of stress, both as we go into the final inspections as well as throughout the entire process. What led you to Cincinnati? Is it a place you would consider moving? As a first time investor, there's (debatably) no better way to invest than house-hacking with an FHA loan. That's a strong first step to building long-lasting financial wealth, as noted in the fantastic book, Set For Life. 

I recommend getting acquainted in the area, finding a solid contractor crew (and vetting their previous work thoroughly) and calling around to local property management companies to find who they use regularly to manage their repairs. You should have a firm grasp on the general processes involved in buying, drafting plans, construction timeline and resale strategies before getting into it as a first timer. You don't want to sound like an out-of-state newbie to a local contractor, who very well may use your account at Home Depot to buy materials for other projects. 

Get comfortable with uncertainty, or be explicit about your expectations when working with a contractor (weekly visits/photos, invoices prior to payment, etc) - don't make assumptions. Feel free to DM me.