Columbus 1% Deal - Out of State Investment

[Thomas Corley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000
Cash invested: $25,000

My business partner and I were looking for a deal that meets the 1% rule which is definitely hard to find nowadays in the AZ and CA markets. We had to go to an out-of-state market in OH, developed relationships, and learned about the local market! We will be renting to Section 8 tenants in a C+ area.

Key Note:
When investing out of state, we found that visiting the city and creating relationships with realtors, property managers and contractors can hugely help you down the road.

What made you interested in investing in this type of deal?

Cash flow. We are seeing great appreciation in our local markets, but we wanted to diversify and invest in a cash-flowing market.

How did you find this deal and how did you negotiate it?

We found it through our agent, who found it on the MLS. Helps to find a rockstar agent send you deals that align with your goals.

How did you finance this deal?

We financed the deal through a lender on a 30-year fixed-rate mortgage.

How did you add value to the deal?

We did light renovations in order to get it ready to rent.

What was the outcome?

We found a positive cash-flowing property with stable Section 8 Tenants, and we are ready to do it again!

Lessons learned? Challenges?

If you are going to invest out of state go see the city before you invest and really develop relationships with your core 4!

[Thomas Corley]

@Michael P. we used First Ohio Finance for lending they allowed 20% down because it was a single family investment property. 

The CoC of this deal is 10.6%.Let me know if you have any other questions?