Best area for first duplex purchase in Midwest Ohio?

Question

My fiancé and I are looking to do a house hack. We are looking to buy a duplex in the next month or two to start our real-estate investing journey. We plan to probably live in one unit and rent out the other to get our feet wet and learn the business. We currently do travel healthcare, butte  will probably stop shortly once we buy our first duplex. We also thought about buying and renting both units out, however, to do that we would need more capital as you need to be 25-30% down.

Right now we are trying to figure out the best neighborhood in Midwest Ohio to buy. We have looked at about 7 duplexes in Piqua, OH. We have also considered Sidney, Troy, Dayton etc. My fiancé is from Lima, OH, and I am from a little town called St. Henry, OH. For our first duplex, we want to buy relatively close to where we grew up since we will be living in one unit. Another reason we intend to buy close is that if we do decide to continue traveling, family can help out with upkeep etc. We would love some feedback from anyone who invests in any of these areas of Ohio.

Also- we are beginning to explore financing options. Has anyone had success with any of the OHFA programs on myohiohome.org? We are interested in Renovate Ohio, but we have heard it’s a pain and interest rates are bad. Another program we screened into is the “grants for grads.” If anyone has any good/bad  experiences and/or success with any of these programs, we would appreciate the feedback.

Any other tips, suggestions, or advice for new real-estate investors welcome!  We would love and appreciation any suggestions for our situation.

Thanks!

Britt and Jon

Remington Lyman · Answer

@Jonathan Steiger conventional mortgage companies have not historically called the note as long as you have the intent to occupy a unit. I know someone who had the intent to move into a 4 unit in Columbus, OH. They got an owner-occupied mortgage and did 10% down. Right after closing, tragically, their intent changed, and they rented all 4 units and never moved in. So sad...

Whitney Small · Answer

@Johnathan Stegier- congratulations on taking action on your investment dreams! That's awesome

I was raised in Piqua and lived in Sidney for several years. Bought and sold in both areas. I moved to Columbus for more opportunity in my Real Estate Career.

I believe the Miami Co and Shelby Co are great areas to practice the BRRR method in. Duplex's are hard to find in decent areas in those towns. Plus with the BRRR method the capital to begin with can be way less than with a duplex.

Message me if you would like to discuss further.

Tyler Speelman · Answer

@Jonathan Steiger

HI Jon,

I would consider choosing an area with a good school district. Also, I think a single story duplex may be easier to rent out than a 2 story.   Choosing the worst duplex in the best area with good nearby comps is a great strategy especially for BRRRR in my opinion because it will be easier to force appreciation, rent out then reappraise and refinance.

Montgomery county property taxes are pretty steep.

Just thinking ahead - finding a good tenant between Thanksgiving and the Superbowl may be difficult, something to consider if you buy a vacant duplex that needs repaired. I would also be cautious purchasing a duplex that is occupied - the previous owner may not have screened their tenant(s) appropriately and you may inherit a headache. You could probably get a feel for the type of tenant they may be when you walk through, but I would also look them up on Facebook, etc. to figure out if they are gonna be a problem. If you think they will be terrible then you could work the eviction cost into your numbers before making an  offer.

I sent you a personal message, I live in your neck of the woods and would be open to chatting anytime.

Nicole Heasley Beitenman · Answer

@Jonathan Steiger I did a brief Google search after reading your post and came to the same 203K comparison conclusion you did. I know there are contractors out there who specialize in 203K work, so they're familiar with said-hoops.

Nathan Slemmons · Answer

Hey Jon - I haven't purchased any properties in Sidney but I have been there to look at a few. I like Sidney, it seems like a stable town with pretty good growth. I would recommend it. Most of the duplexes you will find are going to be in blue collar areas but there's some fairly decent properties there. Reach out to Tim Gleason at Realty 2000 Group. He should be able to help you out if you end up going there.

Marc Strickling · Answer

Congrats on taking action! It's nice to see interest in smaller towns. If you need any advice going forward fell free to contact me

Gordon Starr · Answer

Sounds like an awesome business plan. I wish more people started this way it takes a ton of risk off the table. There a lots of nice duplexes in dayton. I'd suggest targeting emerging c class near downtown.

Kevin Miller · Answer

@Jonathan Steiger I plan on the the same thing here in Columbus. One of my main lenders is OFHA approved. If you want her contact information or any other questions hit in a DM. GOOD luck

Jonathan Steiger · Answer

@Tyler Speelman thanks for your detailed response, I’m going to respond to your PM.

Jonathan Steiger · Answer

@Gordon Starr Thank you, we are looking forward to executing the plan. Appreciate the suggestion.  If we start looking a little further south we will definitely keep that in mind.

Best area for first duplex purchase in Midwest Ohio?

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