What is going on in the Columbus Ohio investment market right now is a terrible thing. Terrible, that is, if you are overextended. Terrible if you are trying to sell investment property at retail prices. Terrible if you don't have a source of funds.
What I am trying to say is that now is a great time to buy investment real estate in the 1-4 market. What is a 1-4?? That means 1 to 4 units. This can be a single family home, a double, a three unit or a 4 plex. These types of real estate investments are the ones most usually made by beginning investors and experienced investors alike. Some investments can be made for as little as $25,000 (some lower) and on up in price. Some are spending hundreds of thousands on single family homes for use as executive rentals.
I am sure you are asking "why now?" Answer: Because the market is terrible. Yes. Terrible! In my opinion, it is getting worse and that is a good thing for investors.
Why is it so bad? The number 1 reason that I see is that money is tight. If you have bad credit, little cash and need really creative financing to do deals, then you might just be on the sidelines for a while. 60% of the investors that were buying last year are on the sidelines. Many people can't refinance out of ARM's, others have different financial problems and the market is flooding with more property every day.
This is very simple economics. 60% less qualified investors and significantly more inventory creates a downward cycle in prices. This cycle is creating opportunity for those interested in getting into the market.
Buyers are driving the bus these days in Columbus. If you can buy and hold for two years, then you should be buying. For first timers, buy something with a tenant or that is ready to rent. More experienced investors should be taking the next step into the deeper water.
The great thing about swimming in this pool is that it has both a deep and a shallow end. Pick an end, put on your trunks and jump in. The water is just about right. Don't mind the sharks. There's enough chum to go around !!!
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
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Awesome. Rich, I have been preaching the same thing here, only I have been telling people to be ready in about a year. Get that credit score up, save some money, earn some money, and get ready.
What is the rental market like right now? I am looking for markets where the rents are $100/mo. for every 10k in purchase price. I have found a couple of places where this is possible in the 50k-75k range. Any chance that is happening in your area?