Hello Columbus! sell me or scare me

[Ken Livingston]

Hello all. NJ resident here who is looking for an out of state area to do some investing. My area is just too damn expensive. I have done a lot of reading and research and Columbus has definitely caught my eye. I already have a realtor as well as finance and Insurance people I have had conversations with there.  I am looking is the small multifamily or single family areas to start. 

   I guess what I am basically asking for is for opinions to sell me either way. 

   Have I picked a good area or am I a fool and should restart my search in another area?

[Nicholas L.]

@Ken Livingston

why not pick an area that is closer to home, where you can be hands-on?  not sure what area in NJ you're in but you might be close to lower cost markets in PA, CT, etc.

Columbus is definitely a great market, i just think that given the current market conditions, new investors need to be hands on.  if you're going to travel there in person to set up your team, network, and look at properties, great.  but the days of pushing internet buttons to easily get a cash flowing deal are over.

[Anthony L Amos Jr]

Quote from @Ken Livingston:

Hello all. NJ resident here who is looking for an out of state area to do some investing. My area is just too damn expensive. I have done a lot of reading and research and Columbus has definitely caught my eye. I already have a realtor as well as finance and Insurance people I have had conversations with there.  I am looking is the small multifamily or single family areas to start. 

   I guess what I am basically asking for is for opinions to sell me either way. 

   Have I picked a good area or am I a fool and should restart my search in another area?

If you're looking for long term appreciation, then you've picked a great market. We have it all! Development, low unemployment, growing population, one of the largest universities in the country, housing demand, central hub within a 6-hour drive of at least 6 other major metropolitan areas, and last but not least, great food options! 

[Remington Lyman]

Quote from @Ken Livingston:

Hello all. NJ resident here who is looking for an out of state area to do some investing. My area is just too damn expensive. I have done a lot of reading and research and Columbus has definitely caught my eye. I already have a realtor as well as finance and Insurance people I have had conversations with there.  I am looking is the small multifamily or single family areas to start. 

   I guess what I am basically asking for is for opinions to sell me either way. 

   Have I picked a good area or am I a fool and should restart my search in another area?

 I like Columbus. I moved here in 2012 from CT.

I would try to do local if you can, but Ohio is a good option since you are priced out. I am happy to chat with you about my experiences here. 

[Christian Ehlers]

I'd agree that ideally being within driving distance to your rentals is ideal if you can, however if you are set on going out of state then from what I've heard Columbus seems to be a great market. 

After hearing Columbus named on the podcast a few times and seeing how many more people have this market on their radar since then, my guess is that this will be one of the new "Hot Markets" where every out of state investor goes and the demand for rental properties will go way up over the next few years. If you can get in early/now I'd guess you'll be in a great spot 5 years down the road, but unfortunately I need new batteries for my crystal ball so I don't know for sure.....

[Jimmy Lieu]

Quote from @Ken Livingston:

Hello all. NJ resident here who is looking for an out of state area to do some investing. My area is just too damn expensive. I have done a lot of reading and research and Columbus has definitely caught my eye. I already have a realtor as well as finance and Insurance people I have had conversations with there.  I am looking is the small multifamily or single family areas to start. 

   I guess what I am basically asking for is for opinions to sell me either way. 

   Have I picked a good area or am I a fool and should restart my search in another area?

Hey Ken, totally can relate with you being from an expensive real estate market - 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!

[Brandon Goldsmith]

There is a lot going on in the city with developments, but typically you will need to do a little bit of cosmetic update to make deals work since it has become more competitive. It will be the most expensive part of Ohio for sure but if you are planning on holding it would be a good choice. If you find something in your own backyard that will be better but Columbus is a decent second choice. Best of luck @Ken Livingston

[Ken Livingston]

Thank you all for your great input. I have looked at places like Ct. but prices there aren’t much better than they are in NJ unless I go all the way east which stretches the distance from home. I would love to stay local but that just isn’t feasible at this time. 

[Jayson Cain]

Hi @Ken Livingston,
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.

[Jayson Cain]

Hi @Ken Livingston,

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.

[Rickey Brunson]

Quote from @Ken Livingston:

Hello all. NJ resident here who is looking for an out of state area to do some investing. My area is just too damn expensive. I have done a lot of reading and research and Columbus has definitely caught my eye. I already have a realtor as well as finance and Insurance people I have had conversations with there.  I am looking is the small multifamily or single family areas to start. 

   I guess what I am basically asking for is for opinions to sell me either way. 

   Have I picked a good area or am I a fool and should restart my search in another area?

Hello Ken,

It's fantastic that you're exploring opportunities in Columbus for your real estate investments. It sounds like you've already taken some proactive steps by connecting with local professionals, which is a great start. Here are a few considerations to help you evaluate whether Columbus is the right fit for your investment goals:

Positive Aspects:

1. Diverse Market: Columbus has a diverse real estate market with opportunities in both small multifamily and single-family properties. The range allows for flexibility in your investment strategy.
2. Economic Growth: The city has experienced significant economic growth in recent years, which can positively impact the real estate market. Job growth often correlates with increased demand for housing.
3. Educational Institutions: The presence of Ohio State University can contribute to a stable rental market. Student housing and faculty rentals can be lucrative in university towns.
4. Affordability: Compared to some other markets, Columbus offers more affordable investment opportunities. This could lead to better cash flow and potentially higher returns.

Considerations:

1. Market Research: Continue your due diligence by delving deeper into the local market trends. Understand the specific neighborhoods, vacancy rates, and potential for appreciation.
2. Risk Management: Every market has its risks. Consider factors like job stability, economic diversification, and potential impacts of external factors on the local economy.
3. Local Regulations: Be aware of local regulations, taxes, and any specific rules that might impact your real estate investment. These can vary significantly from one location to another.
4. Visit in Person: If possible, visit Columbus in person to get a feel for the neighborhoods you're interested in. Local insights gained on the ground can be invaluable.

Reassessing:

While Columbus appears promising, it's always a good idea to compare it with other potential markets. Consider diversifying your options and exploring a couple of different areas to ensure you're making an informed decision based on your specific investment criteria.

Ultimately, the "right" area depends on your investment goals, risk tolerance, and personal preferences. If Columbus aligns with these factors and you feel confident in the opportunities it presents, it could indeed be an excellent choice.

Wishing you success in your real estate ventures!

Rickey H Brunson

[Robert Ellis]

Quote from @Ken Livingston:

Hello all. NJ resident here who is looking for an out of state area to do some investing. My area is just too damn expensive. I have done a lot of reading and research and Columbus has definitely caught my eye. I already have a realtor as well as finance and Insurance people I have had conversations with there.  I am looking is the small multifamily or single family areas to start. 

   I guess what I am basically asking for is for opinions to sell me either way. 

   Have I picked a good area or am I a fool and should restart my search in another area?

 I'd look at building for a profit or building to hold. You don't have to be stuck on existing inventory, you have 100% control of the floorplan, location you buy in, strategy, bedrooms, bathrooms, garages, acreage. 

[Scott Allen]

@Ken Livingston Columbus is a great market. It's the most expensive market in Ohio because it has a mix of both cashflow and appreciation. Cleveland would be good to look into if you're lookin for more cashflow. Some of the best multi-family deals you can get done here are usually put together off-market prior to being listed. Small single-family deals you can find on the market to BRRRR.

[Andrina Maximin]

Quote from @Nicholas L.:

@Ken Livingston

why not pick an area that is closer to home, where you can be hands-on?  not sure what area in NJ you're in but you might be close to lower cost markets in PA, CT, etc.

Columbus is definitely a great market, i just think that given the current market conditions, new investors need to be hands on.  if you're going to travel there in person to set up your team, network, and look at properties, great.  but the days of pushing internet buttons to easily get a cash flowing deal are over.

Hi, i seen this conversation and had a question, I hope anyone of you can help, I've been thinking about investing in Ohio as well, would you recommend something like a turnkey? instead of doing a BRRR since with a BRRR property it would be a very hands on project? but I am willing to travel to put my team together if that what it will take.

[Andrina Maximin]

Quote from @Jayson Cain:

Hi @Ken Livingston,
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.

Hi Jayson, 
is it possible to connect with you? I'm wanting to invest in Columbus been getting a lot of mixed reviews and would love to know more about  thinking about the DSCR loans as well. 

[Robert Ellis]

Quote from @Andrina Maximin:

Quote from @Jayson Cain:

Hi @Ken Livingston,
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.

Hi Jayson, 
is it possible to connect with you? I'm wanting to invest in Columbus been getting a lot of mixed reviews and would love to know more about  thinking about the DSCR loans as well. 

I'd setup a few meetings and come in and look at a few strategies. I went to a family office conference in Fort Lauderdale. Met dozens of people about a build to rent. We found a group that was in Austin Texas that wanted to do these and liked the strategy. They flew in the next week and we spent 2 full days on the strategy and identifying submarkets and lots they liked around columbus and Central Ohio. They settled on Newark due to its recent increase in the number of new build deliveries and proximity to Intel as well as rapid property growth in the submarket that exceeds double digits. They closed on the land and are now interviewing builders and we are essentially an owners rep and developer to them. They are going to do 6 this year. I literally met with them 30 days ago. The right person and the right team are much more important in my opinion than the market. People are making money in every market with many different strategies. Decide if existing inventory or new construction is for you, single family or multifamily. If you don't know start talking to others about their "biggest wins", ask them for underwriting, ask them for references. I think you'll do well. DSCR loans apply to existing and new construction properties. I have a few if you need additional resources.

[Zac Mckenzie]

HI Ken, I'll let these other fantastic people tell you how great Columbus. It is and I agree with them, When you need some boots on the ground Consulting and General Contracting know that we are happy to assist. Best of luck