All Forum Posts by: Joe Fish

I used to live in Columbus and would like to invest there again, but I think it will be difficult to find a turnkey property there at this point in time, unless you're willing to have negative cashflow for a few years or have a large amount of capital to put into the deal. That will especially be the case if you want to have a property manager. Columbus is a good appreciation play in my opinion (better than the rest of Ohio and much of the midwest). It has a strong and diversified job market and relatively high quality of life for the midwest. Great restaurants, progressive-minded, large university. You might consider looking at the north suburbs.   

For the experienced STR investors, what insights can you share about occupancy and rate trends? How is 2023 shaping up relative to the past few years?

I hear a lot about how over supply is driving down prices and occupancy. Has this been your experience? What types of markets and properties may be more or less affected?

For example, is this primarily an issue in urban areas or are you seeing this in regional tourism destinations too? 

Thanks for sharing your insights!

Quote from @Yael Lederman:

This is a great list! One thing I'll add is if you're looking at a new market, trying arbitrage first to test demand for a year or two can be a good strategy. You can figure out demand and other variables without taking on too much long term risk. 

@Yael Lederman - can you expand on how to approach an owner and structure an agreement with STR arbitrage in mind? For example, do you take over the Airbnb listing (if it already exists), handle maintenance, cleaning, etc. Any tips or resources would be super helpful. Thanks! 

This doesn’t sound too bad. I would start with kitchen demo, followed by floors, cabinets, then paint. You could also do cabinets then floors, but I prefer to have floors run under the cabinets without a change in finish or materials. Installing cabinets shouldn’t mess up your floors, and decent painters will tape off the floors too. Paint should be last I think, as the other tasks will be dusty. 

It sounds like you've already selected this house? If that's the case, it is likely better suited for one or the other depending on location, condition, and the property itself. I only have direct experience with LTR, but have looked into doing STR. While I know cash flow for STR can be a lot higher, I find STR are harder to evaluate/predict, as the profitability is highly dependent on occupancy rate, nightly rate, and even cleaning fees. There's also a steeper learning curve for STR and fewer financing options.

I would definitely use an app. The experience on iOS is clunky at best. 

Thanks @Jon Taylor and @Dave Foster. That’s what I was hoping, but very much appreciate the confirmation! 

I'm looking to do a 1031 exchange in about a year and wondered if it's possible to secure the replacement property with an option contract before then, sell & close on the original/relinquished property, then close on the replacement property. The option period would extend beyond the timeframe that I intend to sell my currently owned property. I'm aware of the reverse exchange and how that works, but I would not want to close on the replacement property before selling so I don't think that applies here. I haven't seen this scenario discussed anywhere and would appreciate any feedback on this idea. Thanks!  

Thanks for sharing this info!

My two cents… finding a multi family opportunity in a good neighborhood in Columbus for $100k is unrealistic. I bought a 2BR / 1BA single family home for around $100k in an okay, but not great neighborhood (Merion Village) over 10 years ago. The area has appreciated substantially since then. Any MFH for $100k is going to be in a sketchy neighbor or need significant work.