Note: This blog post is for informational purposes only and is not to be construed as investment advice. Always consult with qualified professionals before making any investment decisions. The author and website are not liable for any actions taken based on this content.
If you’re considering buying investment properties in Columbus, Ohio, you probably have questions. Will it be profitable? What are the risks? Where do I start?
As a real estate investor and agent in Columbus for over 18 years, I want to share my experience and advice for investing in central Ohio real estate.
How I Got Started Investing in Real Estate
Like many investors, Rich Dad Poor Dad by Robert Kiyosaki inspired me to start buying rental properties. That book gives you the investing bug and the motivation to take control of your finances through real estate.
Today I own single-family homes, condos, duplexes, and I’m an investor in a local bank. There are so many ways to invest in real estate. It depends on your goals and how hands-on you want to be.
Before you start, think about whether you want to manage properties yourself or take a more passive approach like investing in a real estate syndication. I’ve worked with all types investors, from buying 20 properties a month to first-timers. The key is to start somewhere and take action.
The Pros of Investing in Columbus Real Estate
Let’s look at some of the biggest benefits of owning rental property in Columbus:
1. Appreciation
Real estate often appreciates faster than the rate of inflation. Housing supply in Columbus can’t keep up with population growth, leading to rising property values. The area saw 9% appreciation in 2021.
Real estate is a tangible asset with inherent value, even during market downturns. With the right investments, you can build significant equity over time.
2. Passive Income
Rental income can cover expenses, pay off mortgages faster, and fund further investments. Good tenants and property management can make rental income mostly passive.
3. Equity Growth
Mortgage payments build equity that you can leverage to buy more properties. Equity also leads to cash-on-cash returns when you sell.
4. Leverage
With financing, you can control a large asset while minimizing your capital outlay. For example, a $150k property with 20% down allows you to benefit from a $150k asset with only $30k invested.
The Cons of Columbus Real Estate Investing
Of course, real estate investing isn’t without its challenges:
1. Market Corrections
Property values can drop during economic downturns or pandemics. It’s important to focus on long-term returns, not short-term fluctuations.
2. Expenses
From maintenance to vacancies, expenses eat into your returns. Proper budgeting and maintenance can help minimize costs.
3. Bad Tenants
Even with screening, you may end up with damaging or non-paying tenants. Patience and following Ohio landlord-tenant laws are key.
4. High Upfront Costs
You need around 20-25% down payment plus closing costs. Real estate is not a get-rich-quick scheme. You need capital and a long-term view.
Conclusion: Why Columbus Real Estate is a Smart Investment
Despite the risks, central Ohio remains a strong market for rental property investment. Population and job growth drive housing demand while rents and property values climb.
To succeed, conduct thorough due diligence, run the numbers, and work with a knowledgeable real estate agent and property manager. With the right approach, Columbus real estate can be a pathway to financial freedom.
I hope this overview has been helpful and given you a better idea of what to expect. Let me know if you have any other questions about investing in Columbus! I’m happy to help investors just starting out or looking to expand their portfolio.
