Young Investor - Ohio Apartment Complex Purchase HELP!

[Garret Anthony]

Hey Everyone! 

I am a current business owner but currently own no real estate.

After some thoughtful research, I have focused my attention on investing in the state of Ohio. My reasoning is based on the average cost per unit available and the current market rent rates. I consistently see Ohio pulling in above average cap rates. I am looking at purchase prices between $550,000 - $700,000, currently, I have $200,000 cash on hand for this investment. 

I am seeking knowledge on what I should look for and things I should avoid. Also if anyone has some major RED flags for Ohio I would love to hear about them. Please give me your insights and I look forward to diving into them with you.

Happy Investing!

[Calvin Watkins]

Hey Garret!

I am actually in the Ohio market looking for apartment complexes as well. I have noticed that in the Columbus area specifically that it is best to look for C+ or B neighborhoods for the apartments. I would suggest if you are looking in the Columbus area to look at recent development in terms of new expansion of business or job growth. For example Columbus Children's Hospital is expanding so areas like Southern Orchards should be experiencing some good appreciation here soon as it is next to a high value area (German Village) and would be great housing for employees working at the hospital. 

Though this is a pretty specific example, things of this nature are good to research to plan what areas will likely have rental rate growth which would lead to a more valuable apartment complex.

I hope this helps!