Originally posted by Tom C:
I love out of state landlords that come into Ohio and think that buying up our vacants will be a cash cow. I've been investing and renting for a few years now and I will tell you, these are old homes and require a lot of maint on a regular basis. Sure, labor is cheap and the tenants are plentiful, but it takes a lot of time managing these homes.
The reason I say I love out of state landlords is because they quickly find that it's too much work and hassle trying to operate in my neighborhood and they put the place up for sale. I can get them cheap and newly rehabbed. An example. Landlord from Calf bought a duplex in my area. He invested 2 new furnaces, 2 new hot water tanks, 2 new baths, new carpeting, roof and windows. He paid $32K for it. 2 years of not being able to keep it rented and dealing with all of the incompetent local management companies, he put it back on the market for $23K.
I offered $17,5K and he took it and ran as fast as he could.
I'm buying and renting out property in NE Ohio and would like to confirm this post from Tom. Don't be fooled into thinking you're going to make a fast buck here, you're not. In fact I'll probably be making a fast buck from you when you fail.
Money can be made here, but you really, really need to know the market or you are going to get burned, hard core.
I know specifically a neighborhood where you can buy a 3/2 1960's ranch style home for $25K. You can drive through the neighborhood and it looks like your typical working class neighborhood.
What you won't see is when the sun goes down the drug trade is centered around a local park and it is literally gang warfare on the streets.
I had one realtor tell me a story where he had to call the police so he could get escorted out to the house he was showing due to a gun fight in the street in front of the house.
