All Forum Posts by: Clay Boykin

@Jay Patel This sounds like an appreciation play. I would like to know what area/state you bought this deal in. I would suggest diving into the rent rates in the area and see if they can be majorly increased. Something like this would make sense in an appreciating market where you can put little money into it and sell in a few years/refi out (if you want to keep it). When buying your first multifamily, it is important to set your self up for your next deal. Make sure there is value add potential or it is cash-flowing fluently. Happy Investing!

@Daniel Umstead Columbus, OH is becoming a industrial/tech hub. With that being said, both commercial and residential markets are changing daily. The ability to invest in this market is becoming easier every day. Whether its doing a midrehab and making 30k or cash flowing $200-300 a month from one SFH. Yes, in other markets it is possible but Columbus is universal. Feel free to reach out to me regarding this market. Either way, Happy Investing!

@Cesar Figueroa Cleveland and Detroit seem cheap yes, but are they appreciating rapidly? No. I would suggest Columbus, OH or Jacksonville, Fl. Columbus is great for newbies and experienced investors due to the utilization of multiple exit strategies on most deals, appreciation, and high netting cash flow. A win-win in my book. I would suggest to build out your network to familiarize yourself with the market since you are OOS. Happy Investing!

@Sevak Gasparian Comps are dependent upon the pocket/area. If you go back (at the most) 2 years you can find the market change and predict the way it is going (appreciation rate). When I pull comps I usually go back to the first of the previous year just to ensure market change and to see other investors past deals in that area. I can see your concern being OOS but as long as you know that you will cashflow at some point in the deal, that's all that matters. Happy Investing!

@Toks Akindele The appreciation in these cities (Dayton & Toledo in particular) are not on the rise as fast as Columbus is. Cincinnati is growing but I don't see rents following as much as they are in Columbus. As long as you scale your portfolio and cash out on value add deals then you should have a positive average ($200-300) cash flow. 

As far as property managers, I would recommend Beacon Property Management. They are mostly based in Columbus as far as I know but they might be in other Ohio markets as well. Feel free to reach out to me if you have any questions about the Columbus market. Either way, Happy Investing!

@Mollie Hess I would suggest networking at events such as Elevate, COIN, and Multi-family Meetup. These seem to have a variety of people/trades. 

@Account Closed I am happy to hear that you are taking the 5th fastest appreciating market into consideration. I have dealt with a handful of OOS investors and they always seem to have the same concern as you. The thing that changes the most is really boots on the ground. Everything can look good on paper and the house can have 2% return, 12% COC, and a 10% cap but if the house is not appealing to you or your boots on the ground then it will not matter either way.

I had a OOS investor buy a flip in Grove city (South of Columbus/Suburb) and the numbers on that was such: 172k Purchase, ARV 290k (conservative), Rehab 50k, Closing Costs/Realtor Fees just factor in 8% for a budget. Profit 44.8k. That is average for Columbus when it comes to flips.

Since you are looking for MF the numbers will change but the idea stays the same. It really is just learning what market you tap into and identifying what houses "have it" and what houses don't. Happy Investing!

@May T. I would recommend Beacon Property Management. Yes they take a cut, but they take care of everything and establish reasonable expectations.

@Parker Brian This is a good idea based on your situation. This is the exact reason that Columbus is attracting people from areas such as LA, NY, FL, etc. I wouldn't suggest Cleveland as of right now, I would more or less wait until the market appreciates a little more. There is opportunity in Columbus for any exit strategy. Whether you're BRRRRing, STR, LTR, Flip, Subject 2, etc. there is a place for it. I would suggest BRRRRing a property in areas such as Whitehall, Worthington, North Linden, Obetz, Grove City (more or less C+ Neighborhoods and in Columbus city taxes). If you use hard money you will be able to do multiple projects at one time and scale a little more quicker. Feel free to reach out to me if you have any questions. Either way, Happy Investing!!

@Jonah L. It depends on what district it is in. If it is Columbus city taxes then it shouldn't be that expensive. If it is in areas such as Westerville, grove city, etc then it is safe to budget around 3%. Basically, Columbus is cheap compared to surrounding areas.