How to BRRRR in Ohio in 2024

[David Colthart]

Today's Question: Big picture, what actions can I take to increase my chances of success on my first Cleveland or Columbus BRRRR? Take that wherever you want to :)

Why: I am fortunate that my job has given me far more than most of my closest friends and family, and I want to provide others with opportunities and support where it's most needed. Unfortunately my work is not scalable and does not allow me to extend such opportunities. Developing the tools to scale a substantial real estate portfolio would enable me to help people in a way I currently can not.

Me: I'm an investor located in Denver, CO preparing to execute the BRRRR strategy in Cleveland or Columbus, OH (aiming to use about $30-40k of capital). I already have a rockstar agent, but always looking to learn from additional voices. I have read David Greene's BRRRR book and countless biggerpockets posts on the topic, but recognize there are market specifics I don't yet know. Your recommendations, referrals, and words of caution will be invaluable. I have too many questions for one post, so keeping this post broad and will ask more specific questions in the coming weeks/months.

I have a good 6-figure job and some limited real estate investing experience (own one short term rental in the Denver area and recently Airbnb'ed a second property under the rental arbitrage model). 

Goal: Develop the tools to build generational wealth through real estate by executing one successful BRRRR by year's end ("success" would be getting most if not all of my capital back through refi of a property that genuinely cash-flows). Then evaluate what went right/wrong and execute at least four more BRRRRs in 2025.

[Evan Hopple]

@David Colthart

You're looking at a SFH in Columbus or a duplex in Cleveland, both in C class neighborhoods. Columbus numbers are going to be tighter but you'll be see more appreciation than in Cleveland.

Avoid any of the "Heights" in Cleveland, those areas have POS which is a pain and capital intensive on a deal that needs extensive repairs. General rule of thumb is look for properties with Cleveland in the address, anything outside of that will have POS.

Start looking for contractors sooner than later - they'll make or break the whole deal. 

Having a solid PM in place will take some of the burden of being out of state away. 

I do business in both markets, happy to help