Investing in Columbus real estate market

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Investing in Columbus real estate market

Sachin Amin
Columbus, OH · Member since 2018 · 164 posts · 126 votes

Hello All,

I am a first time investor recently purchased two multifamily properties (4 units) - 3 are currently rented and 1 is under rehab. the properties are in not so good area but has a potential to generate positive cash flow if all are rented with min maintenance. I have a property manager who manages these units as I am a full time employee. I am looking to build a network of local contractors and property managers in Columbus area. so far the properties have not generated any cash flow as i had spent rehabbing them. I wanted to know is this a right approach of investing ?

here are some numbers spent around 75k for 2 multi family(4 units) spent around 10k in rehabbing 3 units and are rented, i have the 4th one which needs rehab but iam out of funds and waiting for cashflow from the 3 rentals so i can fix the 4th unit.

Thx

Sachin

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Richard Leyba tejada
Rental Property Investor · Canal Winchester Ohio · Member since 2014 · 73 posts · 19 votes
8y

what are the rents for each apt?

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  • Kevin Brooks
    Los Angeles , CA · Member since 2014 · 1 post · 1 vote
    8y

    Sachin, 

    First congrats on your purchase. Columbus is one of the markets i am looking to invest in so I have been analyzing many REO properties sent to me as well as some MLS properties. Columbus looks promising and has had decent growth and has a good future growth potential. The vacancy rate is low which is very attractive as well. I have been looking for an individual with a great deal of integrity I could coordinate with or partner with as i am an out of state investor.

    I would say your targeting and action is outstanding, but I think you might have moved too soon if the property is not cash flowing. The ROI is the first recommended analysis to be worked out before you go to closing even before you start negotiating because if you close and have not confirmed cash flow it's just more loss. Columbus has really great rent potential so I would find a good management company and get an opinion so that you can recover from your losses before it goes on further.

    1Reply
  • Nixon Davis
    Investor · Columbus, OH · Member since 2016 · 25 posts · 7 votes
    8y

    Sachin,

    Congrats on your purchase. I currently live in Columbus and work in the NEO area so I am between both areas constantly. I am looking at areas within Columbus to buy my second property since I want to buy in areas which I am relatively familiar. I bought my first rental property in Akron, OH last year since I calculated good potential cash flow by investing in that area (I have a PM managing my property). Since Columbus has had some growth with recent year and forecasted to have continued growth, I am looking at purchasing here in the near future.

    0Reply
  • Sachin Amin
    OP
    Columbus, OH · Member since 2018 · 164 posts · 126 votes
    8y

    Great.. always good learning from folks who are in the field..we should connect 

    0Reply
  • Richard Leyba tejada
    Rental Property Investor · Canal Winchester Ohio · Member since 2014 · 73 posts · 19 votes
    8y

    what are the rents for each apt?

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    8y
    Originally posted by @Sachin Amin:

    Hello All,

    I am a first time investor recently purchased two multifamily properties (4 units) - 3 are currently rented and 1 is under rehab. the properties are in not so good area but has a potential to generate positive cash flow if all are rented with min maintenance. I have a property manager who manages these units as I am a full time employee. I am looking to build a network of local contractors and property managers in Columbus area. so far the properties have not generated any cash flow as i had spent rehabbing them. I wanted to know is this a right approach of investing ?

    here are some numbers spent around 75k for 2 multi family(4 units) spent around 10k in rehabbing 3 units and are rented, i have the 4th one which needs rehab but iam out of funds and waiting for cashflow from the 3 rentals so i can fix the 4th unit.

    Thx

    Sachin

     Welcome to the site Sachin. When investing in property, especially low income property in a blighted area it's important to note that things can go well for awhile but there will also be stretches of major difficulty. It's sounds like that's where you are at right now. Might not be a bad idea to balance out your higher risk properties with a few that are much lower risk.

    0Reply
  • Sachin Amin
    OP
    Columbus, OH · Member since 2018 · 164 posts · 126 votes
    8y

    rents are 650 each unit

    0Reply
  • Neddie SmithPro Member
    Rental Property Investor · Portland, OR · Member since 2018 · 56 posts · 18 votes
    8y

    Welcom Sachin. I am currently investigating the Columbus market as well. Looking forward to your experiences with the properties.

    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    8y
    Originally posted by @Sachin Amin:

    Hello All,

    I am a first time investor recently purchased two multifamily properties (4 units) - 3 are currently rented and 1 is under rehab. the properties are in not so good area but has a potential to generate positive cash flow if all are rented with min maintenance. I have a property manager who manages these units as I am a full time employee. I am looking to build a network of local contractors and property managers in Columbus area. so far the properties have not generated any cash flow as i had spent rehabbing them. I wanted to know is this a right approach of investing ?

    here are some numbers spent around 75k for 2 multi family(4 units) spent around 10k in rehabbing 3 units and are rented, i have the 4th one which needs rehab but iam out of funds and waiting for cashflow from the 3 rentals so i can fix the 4th unit.

    Thx

    Sachin

     Hi Sachin, are the properties located here in columbus ohio? For a 4 unit at that price they should be occupied. I'm guessing they rent for 500+ per month. You should be generating cash flow. We sell those investment properties all of the time and they are very popular for out of town investors. Feel free to send me a PM and i can get you my thoughts on the property. I can also refer you to a few property managers and a contractor I did work with this year that did a great job for me, depending on the size of the project. 

    [email protected]786-494-6766
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  • Sachin Amin
    OP
    Columbus, OH · Member since 2018 · 164 posts · 126 votes
    8y

    That would be great rob I will PM shortly

    0Reply
  • BJ Everson
    Property Manager · Columbus, OH · Member since 2017 · 123 posts · 76 votes
    8y

    @Sachin Amin to answer your question on your approach would determine on how these are financed? Do you have a loan on the property or are you earning the $1,950 ($650 each) a month and it's a free and clear property? If free and clear you can look to leverage the property to take out equity and finish the 4th unit. And you can do this at any level of leverage, doesnt have to be the full 70-75% LTV so you are still cash flowing strong.

    If you already have a loan on the property I would ask to what extent was your rehab? If it was sizable and perhaps you bought the property distressed then I would look into the current valuation and consider a refi (need 6 months of seasoning though) as a means to again pull equity out to finish the last unit. 

    Your approach isnt bad, just be sure to learn from each project and grow from them. Maybe on this one you could of spread the rehab funds out a lil more to get all units occupied first then go back in a year later to get the units where you wanted. 

    1Reply
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