Hey you Columbus/Cleveland guys I need market specific advice/encouragement.

[Account Closed]

I am very likely to be relocating back to Ohio in the pretty near future for family reasons.  I've actually had some threads on here about those markets in the past but now it's looking more and more like a reality so I need to start getting real about it.

How much do you think I would need invested in either of these markets (as a new investor but who would be happy to work with others.) to generate a livable modest income cash flow of say 40k per year?  Assume I'm new to these markets but could cash buy up to several hundred thousand worth of property.  I'm thinking in the solid rental neighborhoods (no bad areas but not high end either).

The goal would be to find a place to live for cash near family, and use some of my remaining nest egg to fire up the investment machine and generate income.  Would like to avoid needing to get a job (at least for a while) if possible.

I am just not sure if I'm being realistic, and I would need a W2 income to help bootstrap, or if you can do it without job income but whether the capital required is a lot more than I have.

Just looking for advice/encouragement.  But no smoke blowing.  :)

[Engelo Rumora]

Originally posted by @Account Closed:

I am very likely to be relocating back to Ohio in the pretty near future for family reasons.  I've actually had some threads on here about those markets in the past but now it's looking more and more like a reality so I need to start getting real about it.

How much do you think I would need invested in either of these markets (as a new investor but who would be happy to work with others.) to generate a livable modest income cash flow of say 40k per year?  Assume I'm new to these markets but could cash buy up to several hundred thousand worth of property.  I'm thinking in the solid rental neighborhoods (no bad areas but not high end either).

The goal would be to find a place to live for cash near family, and use some of my remaining nest egg to fire up the investment machine and generate income.  Would like to avoid needing to get a job (at least for a while) if possible.

I am just not sure if I'm being realistic, and I would need a W2 income to help bootstrap, or if you can do it without job income but whether the capital required is a lot more than I have.

Just looking for advice/encouragement.  But no smoke blowing.  :)

Hi Mark,

Ohio is a freaking awesome market.

Below are a few recent deals that I have done or in the process.

No smoke blowing and happy to show you the HUDs if your ever in my neck of the woods of Ohio lollol

A class property (4bed, 2bath), bought for $35,000, renovating for $15,000, value will be around $85,000 in todays market. Rent between $1,000 - $1,100.

B- class property (2bed, 1bath) bought for $8,500 - negotiated down from $20,000. MLS listing believe it or not :). Spent $8,000 on rehab and have tenant lined up at $700pm. Value would be around $30,000 - $35,000 based on comps.

Solid B class area (looking at buying for $12,000-$15,000). Needs $10,000 in work and value would easily be $60,000. Rent $650-$700. The area of this one is gentrifying at a rapid pace. Might have a few dramas with city when doing exterior work due to historic jibba jabba restrictions lollol

Based on my numbers above which are quite conservative to be completely honest with $150,000 - $200,000 in cash, and doing the above deals you can easily generate around $2,500 net per month.

Most investors find it hard to believe that such figures can be bought in B class or better areas.

Here is a blog I wrote on my perception of the different asset classes -

http://www.biggerpockets.com/renewsblog/2014/06/28/abcs-real-estate-asset-classes/

Thanks for reading and have a great day.