All Forum Posts by: Daniel Judge

@Erez Zada others have thrown out the better areas to consider for distressed properties where you might be able to sneak in and add some value via reno. And as others have said, the market is pretty heated so money is getting harder to stretch. That being said, it's not impossible to find what you're looking for. 

One thing you might consider is linking with one of the agents above to discuss strategy further and explore off market properties (REAFCO is a great source for these). I have had luck working with @Remington Lyman on a deal but have had good encounters with several of the other agents as well; they're all a generous bunch. Feel free to PM me if you'd like to discuss further. 

Another option might be moving your search a little bit outside of Columbus. There's several submarkets where you can pick up properties for much cheaper than most of Columbus and where I think the area will still benefit from the growth that Columbus is likely going to see. Areas you might consider would be Lancaster, Circleville, Pataskala, Newark, Marysville, Delaware, etc. In general you'll find a little less competition and a bit more affordability. Marysville and Delaware are the most desirable of that bunch and prices reflect that. Your numbers should work pretty well in the other areas I mentioned. 

Hi @Erez Zada, just for clarification, is your budget $100k for purchase or is that all in (purchase + renovation)? And are you looking to buy with cash or finance?

 Ha, never got a response so I'm guessing the Newark investors are a little less forthcoming with information when compared to Columbus folks!

I'm amazed at how you navigate this hellscape on a daily basis.  

@Susie Evans what are you talking about? Have you ever spent a length of time in Columbus? Your description seems otherworldly.

@Brian Garrett exactly what I was looking for, thank you!

Seeking the knowledge/advice of some seasoned lenders and/or BRRRR investors. I vaguely recall hearing about a trick that some BRRRR investors have used when it comes to the purchase and later refinance. It involved including the costs of renovation at the time of purchase on the HUD and placing those funds into an escrow account that can then be drawn from for the renovations. The trick is that this allowed the investor to then refinance early (not have to wait a 6-12 month seasoning period). Is anyone familiar with this method? If so, can you elaborate on the finer details? Thank you!

@Alan Casilla Here's an article from just today that argues in the current COVID-19 environment, both Columbus and San Antonio are amongst the lowest risk markets for rentals (other low risk markets included Atlanta, Austin, Fort Lauderdale, Houston, Phoenix, and Richmond): https://www.forbes.com/sites/ingowinzer/2020/08/19/how-to-make-a-smart-rental-investment-during-the-covid-19-recession/#1130c8281c26

@Alan Casilla sorry, don't want to sidetrack your original post. Columbus is a solid market, but very competitive, as many are nowadays. Having family nearby and having some familiarity can offer a significant advantage as well as psychological comfort, which is hard to underestimate when starting out. That being said, I think a lot depends on your strategy, your level of willingness to be active in the process, your budget, and your confidence in making your first purchase(s). Best of luck to you!

@Taylor L. I've seen this criticism of Columbus a couple times on here (that it is suspect because someone considers it part of the Rust Belt). I am happy to see any competition choose other cities/regions to make things a bit easier here on the local little guys like myself, but Columbus is a very modern city with incredible job diversity. Manufacturing jobs are definitely a piece of the overall jobs pie in Columbus, but the sector represents a smaller portion of the overall jobs makeup in comparison to the rest of the US. It's actually only the 7th biggest job sector in the Columbus metro area (think instead of education, government, healthcare, business services, utilities, transportation, etc):

https://www.clevelandfed.org/en/newsroom-and-events/publications/metro-mix/columbus/mm-201911-columbus.aspx

It also doesn't feel like a rust belt city. I've lived in Cleveland and you can drive around that city and see the remnants of past industry (I actually think it gives Cleveland a lot of its character, so not intended as a criticism). You don't get that same vibe in Columbus at all (with some saying Columbus doesn't have as much identity/character as other cities because of all of the development that's taken place in recent years).