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Updated about 4 hours ago on . Most recent reply
First Deal in Need of Second Opinion
Hey everyone,
I'm a first time real estate investor looking to close my first deal in Columbus, OH. I've got a lot of conflicting ideas bouncing around in my head, and I'm afraid I'm falling into analysis paralysis.
Are there any experienced real estate investors in Columbus, OH who would be interested connecting?
I know that real estate is super specific to the locale, and I'd love to hop on a quick call with someone who has context in the Columbus market.
Without digging too much into the details, I'm under contract for a duplex in the Franklinton area. The units are pretty much turnkey, but my analysis shows that the property will barely break even. In short, this would be an entirely appreciation-based investment.
Given the state of the economy today, with high interest rates and the seller-buyer lock out effect, I want to discuss the pros and cons of this investment at length, specifically in the context of all the other properties / neighborhoods that I have been evaluating.
I feel that I don't have enough experience to know if I could do better or worse. At the same time, I feel that time is against me. People always say the best time to invest in real estate was last year.
Most Popular Reply
#3 Starting Out Contributor
- Flipper/Rehabber
- Pittsburgh
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#3 Starting Out Contributor
- Flipper/Rehabber
- Pittsburgh
hello. i don't invest in Columbus, but here are some miscellaneous reactions to your post.
-"analysis paralysis" is mostly a made up nonsense phrase intended to get people to go ahead and buy real estate even if they aren't ready to do so. sounds to me like you have valid concerns, not analysis paralysis. if someone has $500K in cash, and has been analyzing deals for 5 years, and hasn't made a single offer... that's analysis paralysis. someone show me that person - i haven't met them yet. you're under contract - how are you in paralysis?
-"pretty much turnkey" - no such thing. they either are or they aren't. you should know from your inspection what they need now, and what they might need in a few years.
-"barely break even" - that is potentially OK, but see previous point. if it's barely break even now... but needs 2 furnaces next year and a roof in 3 years and all new appliances now... that's not barely break even. and guess what - that might be OK too - but only if 1) you're OK with spending that money and 2) the investment justifies it.
-"I feel that time is against me" - that makes me nervous for you. while i agree that real estate remains a good investment, it doesn't mean you should buy just to buy.
-questions for you: have you seen the property? did you have it inspected? do you have enough cash in reserves? what if the furnaces both break? is it occupied or vacant? do you have a PM lined up? have you met them? what if appreciation is low for the next 2-5 years?
also i recommend connecting with @Remington Lyman if he is offering...