All Forum Posts by: Irvin Nguyen

Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. The appreciation rate in Columbus has been 8% higher than the national average over the last year. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.

https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

Another example of economic growth is the upcoming Ohio State University Wexner Medical Center Inpatient Hospital which is a 1.9million square foot hospital that will bring over 800 new beds and a thousand new jobs.

https://abc6onyourside.com/news/local/new-osu-hospital-expected-to-transform-health-care

Here are a few more recent investments

https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbus

Since you are looking at the south, check out Greenville SC. I am from there and it is growing rapidly. Check out some pics online. If you can get a duplex just outside the city, I assure you it will appreciate. 

Cleveland Ohio is an excellent market for smaller multi family acquisitions.  We've owned 2-4 family properties in this market since 1995.  There are normally multiple options to select from.  Be careful when first entering the market if you're new to it as there are many properties that look great on paper but have one or more adverse characteristics that may prevent you from realizing the gains you project.  I strongly suggest that you work with someone that has good long term knowledge of the market and that you invest a day or two to physically tour the areas you're considering if possible before pulling the trigger.  Best of Luck!

Imo there are no bad parts of Columbus. What are you looking for? What is your definition of bad? Some people think that bad parts mean no cash flow. Some people think bad parts are high crime areas.

Hi Irvin,

A couple of months ago, I purchased a 4-unit off market in a B/C area for 285k and about to close on another one in a slightly better area at 285k. Rents for the first one are $800 per 2-bd unit and the other one will be corrected to $825-850 per unit. Also renting out the garages at $50 each. I don't manage these--my property manager does but I'm happy with the way things are going. 

Hi Irvin, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

@Irvin Nguyen
In Ohio, I would recommend looking at Columbus OH. You can get good cash flow and solid appreciation at the same time. Columbus has a lot of job opportunities and population growth. Especially with Intel coming to Columbus as well as Hyperion, which is a company that makes hydrogen fuel cells. Columbus is home to the HQ of Chipotle, Wendys, White castle, L-Brands, and Hunnington. Columbus is also home to OSU, which constantly develops real estate, employs lots of jobs, and attracts students from the US and internationally to attend. On top of all of that, it boasts one of the best college football teams Ohio state buckeyes, which is very well known and has a cult following, and attracts a lot of people to the games. 

 For what it is worth we moved to Portland, Oregon this year. I own multifamily in two other states and the next one we buy will probably be in Portland, Oregon or in Vancouver. You gain a ton of experience and save a TON of money self managing. This is becoming a time here in Portland at least where you can aggressively negotiate with sellers, that is probably what I would do if I was you especially for the first multi unit deal... 

Hey @Irvin Nguyen - I operate in Florida, mostly Tampa, Orlando, Jacksonville, lakeland and Central Florida (everything in between).

As you noted, many markets in Florida are already saturated and have higher prices leading to lower yield in many cases. Not to say you can’t find a deal but it typically requires alot of money and returns are low IMO (4-6%). A lot of the resales under 600k you will find around the “good areas”, #1 - won’t even be in a nice area, are going to be old and built in early to mid 1900’s, require a lot of maintenance/renovations/ a mobile home, be in a location you wouldn’t want to invest in. A new construction basic duplex in a GOOD part Jacksonville, Orlando or Tampa is going to cost a minimum $600k, I am not as confident that you will be able to get at-least $6k in monthly revenues (location specific) compared to the alternative. This seems a little riskier being that prices are higher and yield is lower for the product you are getting. 

Migration to Florida has seen population growth almost everywhere, and in that people had to start moving inland. Ocala is the main city in the Central Florida portion of the state, that is north of Orlando and has the infrastructure to support growth. You have seen a lot of companies such as Amazon, Lockheed Martin, dollar general and Orlando health expand major operations out here. Cost of land and build isn’t bad out here and you don’t sacrifice growth / yield. The goal would be to find a 1% deal as I have done multiple times and am doing now. 

I would look into duplexes out here in Ocala. Yield and appreciation much higher. You can expect 10%+ unleveled cash flow. Although we never bank in appreciation, we feel well positioned in this market for the long run and any appreciation will be icing on the cake.