All Forum Posts by: Anshuman Thakur

@Anshuman Thakur If you are not local I wouldn't go for such a large investment as your entry point. You mentioned in one of your posts that you work for Big 4 consulting firm, great! Will you have the time to review every line item sent to you by the management company? It will be a long list of issues. You should consider syndication as an entry point with lot less oversight and time commitment on your part. Weigh your options in terms of how much time, energy and effort you wish to put once you become the owner. Passive investing really isn't passive. You will always be engaged to ensure your investment does not run dry. 

I want to encourage you to step in the REI game, just do your homework well, weigh your level of comfort and then take the next step. Best to you. Cheers.

Hi Ansh! Columbus is also a great market to buy multifamily properties. The rental demand is pretty strong because of the growing population and job market. And we have seen so much growth because of companies choosing to move and develop here like Intel, Amazon, Meta, etc. Happy to send over some resources on why Columbus is a great real estate market to invest in!

@Anshuman Thakur I'm not sure if this would be "turn key", but is this something of interest to you? Or here's a "turn-key" triplex: https://www.realtor.com/realestateandhomes-detail/213-Findla....

Real estate taxes are a problem here in Hamilton County. Not so much in the out of county metropolitan area: Butler, Warren, Clermont, Dearborn In., Kenton, KY.

A 6 family selling for $1,000,000 will incur $26-30k of annual real estate tax. That $5,000 per unit. You see the problem.

Its not a bad choice but you have Cities like Columbus, Mansfield, Youngstown that seem to sit at the top with very good purchase to cash flow ratios.  Also based on property appreciation percentage and affordability they sit a little higher on the bracket. Although numbers change every day and does not account for finding a dimaond in the rough or every day off market good deal.

In my experience in the last 3-4 years Ohio and Indiana have been on my investors hot sheets.  Its crazy to most people especially for those living in the NE or out in Cali that you can buy a duplex for under $200K.  Not only that but the taxes are in line with the usual 1% to 1.5% of sale price and insurance is affordable.

Best advice is to form a team a seasoned real estate agent and as well as a seasoned Banker or loan officer that knows how to run all of the numbers in advance. Know you market rents, your market analysis for sold comps, history and ARV potential. When you run the numbers up front and do a little digging it can save you a lot of time and money. You also avoid sitting on a property with little chance of appreciation if its tunr key and no room for renovations.

If you ever have any questions feel free to reach out I enjoy helping and talking REI!

Consider lot sizes as well as a big win so that if you decide to add an ADU or mother in law suit to earn extra cash it will fit!

What would be your criteria and buy box for buying there? It is a good market in general but all depends on your strategy and expectations. @Anshuman Thakur

Hey @Anshuman Thakur. In my experience, just about any market (especially in the Midwest) can be a good market for MF properties...the trick is finding the "right" property.

Do you have an area of Cincy you like? A certain number of units or a certain price range?
 

My business partner and I are actually working the Cincinnati market for 5-39 units properties.  We haven't gotten one yet so we're still proving our assumptions
The reason we chose this market is:
- My business partner lives there and has over 30 rentals.

- It has diversified economy with employer like P&G, Kroger, Fifth third bank. Diverse jot sectors like healthcare, logistics and education.

- Landlord friendly laws

- High Cap Rate 6-10% for Class C, which is what we're seeking

- Low Vacancy 4-6%
- Affordable Prices

- Population steadily growing

We shall see if we're right or wrong :)

Yes, it is! I visit Cincinnati about once a month. It has a lot of properties that make for good rentals. Lots of brick multifamily.

@Anshuman Thakur how'd you pick Cincinnati?