Is now the time to buy rental property?
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September 15, 2012 2:42 pm at 2:42 pm #514094
Actually for CCAD, I’d think a pre-prepared garden plot in the back yard would be a huge boon – they aren’t the stand-on-a-deck-pitching-old-milwaukee-cans-into-the-yard kind of crowd. I drive thru the CCAD campus a lot – I *never* see kids in pajamas. Totally different demographic.
I was thinking a sewing room or art studio space as a major selling point for that demographic. At my old place on Town St there were a lot of CCAD students in the building and while they were MUCH quieter than the OSU students I lived near in years past, they were still kids who had never had their own place before. That is always going to be its own set of issues.September 15, 2012 3:01 pm at 3:01 pm #514095
Rental property is a lot of work. It’s also a long term investment, say 10 years or so before it really pays off. That said if you are smart about it you can do very well in Columbus. The southern part of Merion Village or Hungarian Village is a great place to invest in, but I’d recommend living in the area as well so you can keep an eye on your property and get to know the area’s rental demo. If you can be nimble with your financing there are some great REO houses for cheap. My last house was 25k, next door to the one I live in (which was 30k), and I rent it to a good friend cheap- $550. I could easily get $650 but I’d rather be picky about who my next door neighbor is.September 17, 2012 11:08 am at 11:08 am #514096
Thanks for the informative replies!
@Matthew – I had not considered the Hilltop mostly because I know very little about it. I will have to check into that. It sounds like you have a sound strategy.
@Walker – I really like the housing stock in the KLD. The only issues I see are that size of the houses are a bit daunting and from my small knowledge a lack of amenities (which seems to be improving). Personally, I would rather rent to young professionals though the growing student base in the KLD is worth noting. Are there a growing number of YP’s commuting from the KLD to downtown? I tend to see the KLD as Franklinton with much, much, better housing stock (thinking in location terms).
@cbus11 – Weinland Park does seem to the next (and last) logical step in the gentrification of the Short North area. I think the rental potential is great. The area seems to be getting more pricey as most of the properties are owned by investors. I looked at an older wooden frame double on Hamlet St(bank owned), but it needed a total rehab and still cost over $50k.
@Susan – I am going to need to do my homework and I am sure I will mess up a few times. I am looking at REOs. There still seems to be a lot of foreclosed properties on the market.
@bucki12 – I would want to be one of the good guys.
This forum is great!
Anyone have insight on Franklinton? Are YP’s moving there? Most of the housing available is cheap, but seems to require a ton of work.September 17, 2012 11:38 am at 11:38 am #514097
There is not a lot of housing in East Franklinton. I think the available pool of housing in West Franklinton is not that good and the area seems to be overrun by slumlords. If you were looking to be a pioneer and buy a house to fix up and live there that is one thing. I personally think it is a little early to be buying rental property and investing heavily in rehab in West Franklinton.September 17, 2012 11:48 am at 11:48 am #514098
For rental property you may want to look at Old North Columbus (North Campus). Every once in a while foreclosed properties pop up there and it seems to be a better mix of students, families, and young adults than the South Campus area. It is a very rentable area with a lot of amenities.September 17, 2012 1:57 pm at 1:57 pm #514099
Of the areas you picked I would go with something in the southern section of Weinland Park. Summit over to High St would be best, imho.
Northern WP has potential for student rentals, but I would avoid that headache.September 17, 2012 3:19 pm at 3:19 pm #514100
I think the appeal of owning rental property should be directly in proportion to your faith in humanity. In other words, would you trust strangers to babysit your money? One destructive tenant could make your life something less than fun, both in terms of stress and finances.September 17, 2012 3:34 pm at 3:34 pm #514101
I think the appeal of owning rental property should be directly in proportion to your faith in humanity. In other words, would you trust strangers to babysit your money? One destructive tenant could make your life something less than fun, both in terms of stress and finances.
+1 But it is a double edged sword, I helped a friend who had just evicted a long term tenant who also was a hoarder with some hidden mental issues. It was really bad. You have to be willing to be harsh at times. The guy had fallen on hard times and that exacerbated his issues. It was easy to feel sorry for him. My friend had let it go on too long and it ended up costing a lot of money, damage, and emotional strain. You need to treat it as a business which can be hard if your tenants may have no where else to go.September 18, 2012 5:18 pm at 5:18 pm #514102
There is not a lot of housing in East Franklinton. I think the available pool of housing in West Franklinton is not that good and the area seems to be overrun by slumlords. If you were looking to be a pioneer and buy a house to fix up and live there that is one thing. I personally think it is a little early to be buying rental property and investing heavily in rehab in West Franklinton.
It does seem pretty well located to downtown and the housing is dirt cheap. Is it too sketchy to buy now and slowly fix up the property over time? I have heard stories of people doing that in Italian Village about a decade ago and that seemed to take root pretty quickly. 315 does cut a nasty dividing line though.September 18, 2012 5:59 pm at 5:59 pm #514103
I’ve noticed that there some good deals east of Wilson in OTE lately. There aren’t many screaming deals anymore in Weinland Park. And the student rental market just got up ended by moving the sophomores to campus. I know that recently one campus landlord pulled his zoning request to make a party type student rental on 11th near the Gateway and switched it to studios and two-bedroom apartments. So campus landlords are already reacting to a future of fewer students.
Not sure I would buy in West Franklinton. It seems too big geographically to change quickly unless you’re in the 20-30 year time frame. Italian Village and Weinland Park are/were small neighborhoods with solid boundaries. That’s a key I think to neighborhood improvement. And I think the houses in KLD are too big for a single person to renovate. A real trap is getting more house than you can get back on the market in a timely manner, especially if you’re doing it yourself.
EDIT: Sorry, I meant west of Wilson. East of that you’re pretty much in Franklin Park and I think you’d have to be owner-occupier to make it work. But east of Wilson has actual neighborhood amenities now and is close enough to downtown I think.September 18, 2012 6:27 pm at 6:27 pm #514104
@rory – Those are some very good points and tips. I like the potential of Weinland Park a lot, but the deals on possible rental property do seem to be more sparse. I looked at a decent sized single family for $60k, but it was rather large with an incomplete renovation. I am thinking doubles make the most sense for rental and Weinland Park has a lot of those. I would not want to rent to students so the sophomore plan would not effect me. South campus seems such a mess, I would want to stay well south of that. Of the areas, I think Weinland Park is probably the best for rental potential. It would probably require more patience to find the right property and maybe a longer time for roi.
I will look closer at OTE. I wonder though if there is a decent demand to rent that far east (past wilson)? Other than the Conservatory, there does not seem to be that many amenities that would appeal to renters. The forsale housing stock has character but also seems to require a lot of work. The large size of OTE seems to be an issue as you mentioned for West Franklinton.
Sorry if I am thinking (more rambling) out loud.
thanks for the insightSeptember 22, 2012 2:15 pm at 2:15 pm #514105
I was thinking a sewing room or art studio space as a major selling point for that demographic. At my old place on Town St there were a lot of CCAD students in the building and while they were MUCH quieter than the OSU students I lived near in years past, they were still kids who had never had their own place before. That is always going to be its own set of issues.
This is just an anecdote but my friend rents property by Hudson and Summit. Last year he rented to some CCAD students. He spent a month of Sundays cleaning up residuals of a years worth of art projects. They really did a lot of damage, just through being thoughtless and careless. He had told them it was okay to use the basement as a studio, but it spread to the whole house.
I think if you rent to students, especially young ones, you really have to be constantly checking up on them. They also are very transient, often moving year to year, and probably have near zero stake in the well being of the neighborhood or your property. I would look for more stable tenants.
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