First investment property either GA or Ohio, looking to connect.

[Timothy Newsome]

Hello BP I finally made it here. I’m a new investor and looking to invest in a small multi family. I can do 20-25% down of upwards for a $300-350k property because I can’t house hack as an out of state investor. Would love to be able to do some value add so I can pull my money back out to reuse. Looking to build a boots on the ground team that can really guide me in the right direction and be my eyes and ears. Looking to build relationships. Thanks in advance.

[Remington Lyman]

Quote from @Timothy Newsome:

Hello BP I finally made it here. I’m a new investor and looking to invest in a small multi family. I can do 20-25% down of upwards for a $300-350k property because I can’t house hack as an out of state investor. Would love to be able to do some value add so I can pull my money back out to reuse. Looking to build a boots on the ground team that can really guide me in the right direction and be my eyes and ears. Looking to build relationships. Thanks in advance.

 Welcome to the market!

[Shawn Mcenteer]

I’m sure I can invest somewhat closer to me but it’s very pricey I’m in NJ. I wouldn’t mind the tri state. 

 Hi @Timothy Newsome is house hacking out of the question for you in NJ?   I run into this issue frequently where NJ investors are looking into out of state thinking it is cheaper, that's not always the case.  The price of homes may be lower out of state but the down payment becomes much more plus the cost of having boots on the ground.   $300k Property out of state will cost you $75k in down payment.  $1,000,000 in New Jersey will cost you $50k down payment. Low down payment with potential for huge rent increase year over year making house hacking very advantageous in New Jersey.

[James Wise]

Quote from @Timothy Newsome:

Hello BP I finally made it here. I’m a new investor and looking to invest in a small multi family. I can do 20-25% down of upwards for a $300-350k property because I can’t house hack as an out of state investor. Would love to be able to do some value add so I can pull my money back out to reuse. Looking to build a boots on the ground team that can really guide me in the right direction and be my eyes and ears. Looking to build relationships. Thanks in advance.

 If you're looking at Ohio, I'd imagine you're looking at Cleveland, or at the very least, being pitched at looking at Cleveland by a ton of Realtors and Marketers and such. Before you make any buys here in Cleveland, make sure you read The Ultimate Guide to Grading Cleveland Neighborhoods. You can get thrown off by really low prices on Zillow and such. If you buy here, you need to know why some of the properties are priced so low. Out of state investors can make a ton of money in Cleveland, however, they can also lose a ton of money even easier.

[Mackay Oakey]

@Samuel Diouf which neighborhoods in Columbus would you suggest looking into?

[Samuel Diouf]

Quote from @Mackay Oakey:

@Samuel Diouf which neighborhoods in Columbus would you suggest looking into?

A lot of my clients are seeing great success in C/C+ locations that are in the major areas of growth, so they get the mix of appreciation and cash flow. 

I like areas like North Hilltop, Franklinton, Reeb-Hosack, and Driving park.

[Mackay Oakey]

Quote from @Samuel Diouf:

Quote from @Mackay Oakey:

@Samuel Diouf which neighborhoods in Columbus would you suggest looking into?

A lot of my clients are seeing great success in C/C+ locations that are in the major areas of growth, so they get the mix of appreciation and cash flow. 

I like areas like North Hilltop, Franklinton, Reeb-Hosack, and Driving park.

 I'll check those out, thanks Sam! Do you personally believe it's best to invest in C/C+ locations in Columbus over Cincy or Cleveland?

[Samuel Diouf]

Quote from @Mackay Oakey:

Quote from @Samuel Diouf:

Quote from @Mackay Oakey:

@Samuel Diouf which neighborhoods in Columbus would you suggest looking into?

A lot of my clients are seeing great success in C/C+ locations that are in the major areas of growth, so they get the mix of appreciation and cash flow. 

I like areas like North Hilltop, Franklinton, Reeb-Hosack, and Driving park.

 I'll check those out, thanks Sam! Do you personally believe it's best to invest in C/C+ locations in Columbus over Cincy or Cleveland?

It really depends what your goals with REI are. Historically, properties have appreciated more in A locations, but the cash-flow is nonexistent in the first couple of years whereas C locations cash-flow day 1.

A popular strategy I've seen work is to scale with properties in the C locations and then slowly upgrade your portfolio into the nicer asset classes as you progress and become more cash flow heavy. 

Columbus is going to be a market with more expansive growth compared to Cleveland, which is currently pretty steady with higher cash flow but less appreciation. 

[JooYung Choi]

BP is definitely a good place to start when building your boots on the ground team. I would suggest finding realtors who also invest so they have an idea of what you are trying to accomplish. Bonus points if they can refer you to reputable contractors in the area. Finding a deal worth pursuing is one thing but managing a renovation out of state is a different ball game.

Do you have renovation funds to use outside of your down payment + closing costs? If not, you will have to utilize hard money which will drastically increase holding costs. How big of a renovation were you looking to tackle? The bigger the renovation, the more equity you will force but also comes with more risk. You also have to be wary about the end game when you are looking to refinance and pull money back out. Rents in the area need to be strong or a lender won't even approve you! (look up DSCR loans)

This is only the tip of the iceberg! 

If you ask me, I would much rather prefer investing in my local markets or at least somewhere I can drive to. I would only out of state invest if my boots on the ground guy is someone I can truly trust. 

[Regina Blake]

Hi, welcome yes, the Ohio market is definitely a good place to invest tin real estate. Please feel free to reach out with questions. Best Wishes!