Is Columbus Ohio still a good place to invest?

Question

Hi,

I'm an all cash investor currently based in Seattle, Washington looking to do out of state investing in Columbus Ohio.

My goal is buy & hold/cash flow, and specifically 3/2 or 2/1 single-family homes.

I do know that some regions of the US are really popular on the BiggerPockets forum for rental investments, and Columbus seems to be one of them. (Especially over the last few years)

Is there a catch though to the popularity I'm seeing in Columbus and investing in rentals there?

Is Columbus Ohio in August 2024 still a good place to buy a single-family and rent it out for rental income for an out of state investor? Would I be too late to the race?

Of course, this would be while working with a knowledgeable investor agent.

I'm just concerned that possibly due to Columbus' popularity on BiggerPockets and elsewhere, the market may have been saturated with investors, turn key providers.

I just wanted to get the honest truth before I jump into it and start working with a realtor.

Could it be as simple as finding a good Realtor, buying in a working class neighborhood, etc, and renting it out?

Or are there specific caveats and things I should know about the Columbus market?

Thanks

Evan Hopple · Answer

@Ryan LouzThe cashflow deals are mainly C location 1-4 unit properties. The metrics for long term growth that made investors turn to Columbus still hold true and most of the job creation projects, like intels micro chip factory https://time.com/6140476/intel-building-factory-ohio/ haven't even been completed yet. A good local realtor will be able to guide you on the neighborhoods and should have deals available to you that aren't being listed to the open market.

Samuel Diouf · Answer

Columbus is still a great place to invest, especially when your strategy is to buy and hold. A lot of the projects that are going on here aren't finished yet and new projects and developments are popping up all the time. Columbus has spent 1.4 billion just on downtown highway development as the city prepares for the growth.

How Columbus' highways will change with Downtown Ramp Up ODOT project

80 people are moving here every single week and 80 homes aren't being built, so demand is rising!

Travis Biziorek · Answer

Here's a look at the median list price over the last 5 years for Columbus, Cleveland, St Louis, and Detroit.

These markets are all kicked around a lot for people looking for cash flow. I know Columbus is talked about a lot, but appreciation hasn't been that impressive IMO. Over the last 5 years you're looking at a Compounded Annual Growth Rate (CAGR) of just 3.11%.

Yes, that's far more attractive when you consider leverage (e.g. a mortgage), but when you compare it to Cleveland (4.79%) or St Louis (4.49%), it's not all that great.

And when you look at Detroit at a whopping 16.73% CAGR, Columbus is absolute peanuts.

In short, if you're looking at Ohio markets you would be remiss to not also consider Detroit. It's still early there whereas Columbus, as you stated, has already gone mainstream.

I like finding markets before everyone else figures them out.

Alfath Ahmed · Answer

Hey - I am an investor and agent. I myself buy 2-3 deals every month. There is still a ton of deals and a ton of Californians are investing here. I have a team of 5 that spend the entire day sourcing deals for my investors.

I would say you should connect with a good agent that can show you the ropes and provide you with the right resources to learn the market fast.

Mike Paolucci · Answer

@Ryan Louz A lot will depend on what your investing goals are.

Are you looking for cashflow / appreciation / combo of the two?

Happy to jump on a call and share some of my experiences investing in Columbus from when I started off as an OOS investor from CA.

Travis Timmons · Answer

Maybe? It's not a boomtown, though. If you are open to any location and have that much cash, I'd look somewhere a bit closer like SLC metro, Reno, Vegas, Arizona, or other growing markets in the western half of the US over Columbus.

I look at Columbus as the smartest kid on the short bus. Ohio is declining in population and most of Columbus's migration is from within the state.

I know a couple of out of state investors that exited Columbus after a few years. It doesn't mean that it's a bad place to invest...it has challenges just like any other market. If you have a clear strategy and a subject matter expertise, you'll probably do well. If you don't, you'll probably struggle for at least a year or two.

Mohammad Parwez · Answer

I can talk about the Triad area of North Carolina.

Triad consists of 3 cities Greensboro, High Point, and Winston-Salem.

This area has seen tremendous growth in the past few years and I can see a lot of out-of-state investors investing in this area.

Here you can still get a nice 3 bed/2 bath new construction or SFH built after 2020 for the 270-300k range and expect to get it rented for LTR for at least 1800-2300/m.

This state is landlord-friendly and eviction if needed is easier (3-4 weeks).

Regards

Mohammad Parwez

336-999-9086

https://mohammadrealtor.com

Jimmy Lieu · Answer

Hi Ryan, it has gotten more competitive BUT not saturated. And I say this as an investor myself who own a rental portfolio in Columbus OH. Columbus is still growing and we're still seeing lots of growth in population and the job market with the influx of companies developing here. Each neighborhood comes with its own pros and cons so local knowledge is really the key here. My best advice is to work with someone who can easily plug you in with their network of PMs, GCs, and lenders and can guide you in making strong offers. Happy to connect and answer any questions you may have.

Remington Lyman · Answer

I know many people who are currently buying properties in Columbus. Some have sold their properties, but a significant number of investors, including myself, are still purchasing properties here. I moved to Columbus from Connecticut in 2012 for school and have really enjoyed living in the city.

Is Columbus Ohio still a good place to invest?

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