new investor from california

[Rahul P.]

Hello everyone, 

I am new investor and very new member in the BP community, loving it so far with provided valuable information. 

So many member's here suggested to look into Ohio Columbus rental, brrrr. looking forward to connect with new investor Friendly real-estate agent, Wholesaler, Lender

My area of interest: BRRRR, Fix & Flip, Rental
   

[Nathan Gesner]

Quote from @Rahul P.:

Welcome!

There are many mid-west states that are great for investing, even in today's market. Just make sure you don't rely strictly on the numbers, because they don't always tell the whole story. For example, you can buy a $50,000 house that will rent for $1,000 a month, but it will also experience significant tenant problems, expensive turnovers, long vacancies, and other costly problems.

[Remington Lyman]

Quote from @Rahul P.:

Hello everyone, 

I am new investor and very new member in the BP community, loving it so far with provided valuable information. 

So many member's here suggested to look into Ohio Columbus rental, brrrr. looking forward to connect with new investor Friendly real-estate agent, Wholesaler, Lender

My area of interest: BRRRR, Fix & Flip, Rental
   

 Welcome to BP! I started buying properties in Columbus, Ohio in 2017. Happy to connect with you Rahul

[Anthony L Amos Jr]

Quote from @Rahul P.:

Hello everyone, 

I am new investor and very new member in the BP community, loving it so far with provided valuable information. 

So many member's here suggested to look into Ohio Columbus rental, brrrr. looking forward to connect with new investor Friendly real-estate agent, Wholesaler, Lender

My area of interest: BRRRR, Fix & Flip, Rental
   

Welcome! 

Columbus is a great place to invest due to the growing population, job growth, infrastructure development, and affordability. 

[Simon Ashbaugh]

Hey Rahul, Columbus is a standout choice! The appealing aspect here is the ongoing population growth and other economic factors.

[Patrick Drury]

@Rahul P.
If you are looking to do BRRRR deals in Columbus I recommend areas like Hilltop, Linden, Eastmoor/ Whitehall, and Franklinton. These are areas where you can cash flow in Columbus because the rent-to-price ratio is favorable. Out of these areas, Franklinton and Linden are seeing some of the most developments. With things like the ONE Linden plan in Linden, which is a 50M plan to improve the neighborhood. Of that 50M, 25M was allocated for the construction of a new recreational faculty that has since been completed. Franklinton has been seeing lots of developments like the completion of Gravity Phase 1 and phases 2 and 3 on the way. As well as coffee shops like Bottoms Up Coffee are moving in and small microbreweries like brew dog and Land Grant.

[Jeremy Melloul]

@Rahul P.

Hi Rahul,

Welcome to the world of BP and REI! I'm really excited for you. It's great that you found Columbus, Ohio, especially since you're also from California, like me. I moved here from Los Angeles two years ago just for the real estate market in Columbus.

I would definitely recommend finding an investor-friendly agent in Columbus that you connect with and who understands your investment strategy. Start the conversation there, start kicking the tires, and let's get this thing going!

[Mackaylee Beach]

Hey Rahul, welcome to the BP community.

It's great to see that you have focused on your interest in the real estate industry.

The Midwest region holds significant potential. I would be delighted to connect with you and provide information on the current market trends in Kansas City.

[Samuel Diouf]

Welcome to Bigger Pockets, Rahul!

I’m an investor based out of Columbus, OH. I’d be happy to connect and chat anytime!

These forums are a great place to learn and meet people, whether you're just starting out or you're a seasoned investor.

[Andrew Syrios]

Welcome to BiggerPockets and best of luck investing!

BTW, if you're buying out of state, make sure to do it very cautiously. It can be done right but more often than not, it's done wrong and can cost investors a lot of money. I wrote an article a while back on out of state investing I think you might find helpful: https://www.biggerpockets.com/blog/2014-12-23-investing-out-...

[Alex Olson]

Out of state investing is a risk. Start with where you live, then look to where you want to live, then where family lives - look for the best value for you and your family and your money. A lot of Cali investors look to the midwest. Of course I am partial to Kansas City and help people with their team here. Make sure you have a solid team with a good broker that is honest with you and understands your niche you are buying in.

[Becky White]

If you look for out of state investing opportunities also look for property managers and a good team.  

I am based out of Lexington Kentucky and there are great deals to be made as long as you have a solid team on your side.

[Najma Osman]

Hey @Rahul P.!

Welcome to BP! Columbus is a great market to look at as it is one of the top growing markets in the US right now. I'd reccomend you start with a more turnkey or light value add deal until you find a trustworthy contractor. I'm happy to go over the different neighborhoods and help you get a feel of the city!

[Logan Winn]

As a new investor interested in the Columbus, Ohio real estate market, you're on the right track by seeking connections with investor-friendly professionals. Here's some helpful information to get you started:

1. Real Estate Agents:
- Remington Lyman is an all-star real estate investor in Ohio

- Searching local real estate investing groups on BiggerPockets or Facebook

2. Wholesalers:

Columbus has an active wholesaling market. Some resources to find wholesalers include:

- Discover Wholesale Houses, which specializes in finding discounted properties for investors in Columbus

- Local real estate investing Facebook groups

- Websites like HouseCashin that list wholesale companies in Columbus

3. Lenders:

Several lenders offer investment property loans in Columbus:

- LendingOne: Provides short-term mortgage loans for property purchases, refinancing, and rehabs

- Longhorn Investments: Offers hard money loans for Columbus real estate investors

- Longleaf Lending: Provides 30-year rental loans for long-term rental property investments

For BRRRR and fix-and-flip strategies, consider hard money lenders. The average interest rate for Ohio hard money loans in Q1 2024 was around 11.6-11.8%, with loan amounts averaging $155,000-$205,000.

4. Market Overview:

- The median rent in Columbus is $1,495 as of July 2024

- The median home price is around $284,900, up 3% since January 2024

- Columbus has a strong rental market, with 55% of housing units being renter-occupied

5. Investment Strategies:

Columbus offers opportunities for various investment strategies:

- BRRRR: Look for undervalued properties in up-and-coming neighborhoods

- Fix & Flip: The median days on market is 24, indicating a relatively quick turnaround for renovated properties

- Rental: With a high percentage of renters, there's potential for long-term rental investments

To get started, consider joining local real estate investing groups, attending meetups, and networking with other investors in the Columbus area. This will help you build connections and learn more about the local market dynamics. Remember to thoroughly research any potential deals and always conduct due diligence before making investment decisions. Good luck with your real estate investing journey in Columbus!

[Rahul P.]

Quote from @Logan Winn:

As a new investor interested in the Columbus, Ohio real estate market, you're on the right track by seeking connections with investor-friendly professionals. Here's some helpful information to get you started:

1. Real Estate Agents:
- Remington Lyman is an all-star real estate investor in Ohio

- Searching local real estate investing groups on BiggerPockets or Facebook

2. Wholesalers:

Columbus has an active wholesaling market. Some resources to find wholesalers include:

- Discover Wholesale Houses, which specializes in finding discounted properties for investors in Columbus

- Local real estate investing Facebook groups

- Websites like HouseCashin that list wholesale companies in Columbus

3. Lenders:

Several lenders offer investment property loans in Columbus:

- LendingOne: Provides short-term mortgage loans for property purchases, refinancing, and rehabs

- Longhorn Investments: Offers hard money loans for Columbus real estate investors

- Longleaf Lending: Provides 30-year rental loans for long-term rental property investments

For BRRRR and fix-and-flip strategies, consider hard money lenders. The average interest rate for Ohio hard money loans in Q1 2024 was around 11.6-11.8%, with loan amounts averaging $155,000-$205,000.

4. Market Overview:

- The median rent in Columbus is $1,495 as of July 2024

- The median home price is around $284,900, up 3% since January 2024

- Columbus has a strong rental market, with 55% of housing units being renter-occupied

5. Investment Strategies:

Columbus offers opportunities for various investment strategies:

- BRRRR: Look for undervalued properties in up-and-coming neighborhoods

- Fix & Flip: The median days on market is 24, indicating a relatively quick turnaround for renovated properties

- Rental: With a high percentage of renters, there's potential for long-term rental investments

To get started, consider joining local real estate investing groups, attending meetups, and networking with other investors in the Columbus area. This will help you build connections and learn more about the local market dynamics. Remember to thoroughly research any potential deals and always conduct due diligence before making investment decisions. Good luck with your real estate investing journey in Columbus!

@Logan Winn thank you so much for breakdown. It’s really informative 

[Mike Klarman]

Ohio was hot, hot, hot like 1 - 2 years ago.  Cooled a little.  Columbus is a very tough market.  I like Pitt much better.  You can get into a B neighborhood in Pitt for like 90k on a fix and flip project.  I have lots of connections to the property funnel in Pitt.  I filled these two deals recently in Pitt.

1667 Jancey St

105k purchase

78k reno

270 ARV

4083 Cabinet Street

Purchase 130k

85k rehab

ARV 325k

The key is getting into the pipeline of the market.  Having agents/wholesalers send you quality deals but before they do that you have to prove your a real buyer, you gotta close one with people before they think you are real.

[Tim Ryan]

Just to be helpful: be careful with "so many member's here suggesting".  Have you read the book Blue Ocean?

[Scott Allen]

@Rahul P. Welcome to BiggerPockets! This is a great resource to ask questions and learn more about different markets.

1% Rules and BRRRR's are very achievable here. Fix & Flips are a little tougher to come by.

[Dave Skow]

@Rahul P.  thanks ...if you havent already  done so - get a formal loan pre approval completed to make sure you have the financing needed for your plans 

[Mike Klarman]

Yes, so, knowing the capital costs of a getting a deal close to close is vital.  I can't tell you how many times people came to me and said they wanna buy a 300k duplex and they had 20k.  I have to explain to the the capital requirements to acquire an asset like that which would be 60k+.

For projects under 100k purchase acquired at 80% leverage you can figure needing 25k - 30k in liquidity for all the costs of the life cycle of the project.

If you start acquiring in that 150k range, that lifecycle can go to 40k/50k needed to make sure you can handle the down payment, closing costs, holding costs, any miscellaneous costs that pop up and then still have a cushion in the account cause you never wanna be down to you last dollar.

One of the first questions I ask new clients is what kind of capital do they have behind them, because that number will determine market and asset class.  Someone from Cali with 30k to start investing is most likely closed out of their home market, but there's plenty of deals they can get into from Indianapolis to Pittsburgh.

[Logan Winn]

Quote from @Rahul P.:

Quote from @Logan Winn:

As a new investor interested in the Columbus, Ohio real estate market, you're on the right track by seeking connections with investor-friendly professionals. Here's some helpful information to get you started:

1. Real Estate Agents:
- Remington Lyman is an all-star real estate investor in Ohio

- Searching local real estate investing groups on BiggerPockets or Facebook

2. Wholesalers:

Columbus has an active wholesaling market. Some resources to find wholesalers include:

- Discover Wholesale Houses, which specializes in finding discounted properties for investors in Columbus

- Local real estate investing Facebook groups

- Websites like HouseCashin that list wholesale companies in Columbus

3. Lenders:

Several lenders offer investment property loans in Columbus:

- LendingOne: Provides short-term mortgage loans for property purchases, refinancing, and rehabs

- Longhorn Investments: Offers hard money loans for Columbus real estate investors

- Longleaf Lending: Provides 30-year rental loans for long-term rental property investments

For BRRRR and fix-and-flip strategies, consider hard money lenders. The average interest rate for Ohio hard money loans in Q1 2024 was around 11.6-11.8%, with loan amounts averaging $155,000-$205,000.

4. Market Overview:

- The median rent in Columbus is $1,495 as of July 2024

- The median home price is around $284,900, up 3% since January 2024

- Columbus has a strong rental market, with 55% of housing units being renter-occupied

5. Investment Strategies:

Columbus offers opportunities for various investment strategies:

- BRRRR: Look for undervalued properties in up-and-coming neighborhoods

- Fix & Flip: The median days on market is 24, indicating a relatively quick turnaround for renovated properties

- Rental: With a high percentage of renters, there's potential for long-term rental investments

To get started, consider joining local real estate investing groups, attending meetups, and networking with other investors in the Columbus area. This will help you build connections and learn more about the local market dynamics. Remember to thoroughly research any potential deals and always conduct due diligence before making investment decisions. Good luck with your real estate investing journey in Columbus!

@Logan Winn thank you so much for breakdown. It’s really informative 

 My pleasure @Rahul P.! Feel free to DM me if you want to dive deeper into anything in particular 

@Rahul P.undefined

[Robert Ellis]

Quote from @Mike Klarman:

Ohio was hot, hot, hot like 1 - 2 years ago.  Cooled a little.  Columbus is a very tough market.  I like Pitt much better.  You can get into a B neighborhood in Pitt for like 90k on a fix and flip project.  I have lots of connections to the property funnel in Pitt.  I filled these two deals recently in Pitt.

1667 Jancey St

105k purchase

78k reno

270 ARV

4083 Cabinet Street

Purchase 130k

85k rehab

ARV 325k

The key is getting into the pipeline of the market.  Having agents/wholesalers send you quality deals but before they do that you have to prove your a real buyer, you gotta close one with people before they think you are real.

 what makes columbus tough? 

[Mike Klarman]

What makes a market rough is the barrier of entry to “real deals”.

In competitive markets the MLS numbers won't work for a disciplined investor and good markets are flooded with cash buyers who overpay either cause they have deep pockets or they don't know any better. So getting access to those projects that are mostly cosmetic and the project costs are less than 70% ARV.

Those deals don’t just land in your lap, in some markets it’s harder than others.

The projects I get sent come off market 50% and maybe 40% wholesale and like 10% MLS. I've closed deals with agents. I have agents I've closed 5+ deals with and now they go out and hustle listings just to bring them to my group caus they know we're real buyers.

You’re nothing to an agent/wholesaler/contractor until you closed a deal or two with them and they’ve wet their beak and now look at you as a possible golden goose