Real Estate Investing in Columbus: Discovering America's Hottest Market

Columbus, Ohio, is currently in the spotlight as one of the hottest real estate markets in America, boasting a unique balance of cash flow and appreciation. This city is a melting pot of opportunities for property investors, offering a unique blend of affordability, upward price trends, and a robust rental market. So whether you're considering making a purchase here, or you're just looking for an excuse to enjoy a Weißwurst with a cold Stein in German Village, you've come to the right place.

In this blog post, we'll delve into some of the best neighborhoods for real estate investment in Columbus. Our focus will be on areas that offer impressive appreciation rates, attractive median sale prices, and potential for positive cash flow.

Top Neighborhoods for Investment

1. Southern Orchards There's a lot we can say about Southern Orchards, and why it's a great place to invest (if you can make it work). For those familiar with NYC, think of this like a Williamsburg. We're talking street art, independent coffee shops, and a general overrepresentation of facial hair. Now a consequence of this (as you might expect), is that the area is more expensive than the other 3 neighborhoods we'll be discussing today, but don't be thinking that we're at the end of the gentrification train here. Median home prices are currently sitting at $300k, with a YoY appreciation of just under 30% between Sep. '22 - '23 according to Redfin, but there are some new developments coming. The city is planning on constructing several new sidewalks to improve walkability, and also adding cycling infrastructure. The community is also home to the fourth-largest children's hospital in the country, which employs over 9,000 people. This brings us to the most important part of the conversation: cash-flow. When checking out our platform on Nov. 09, 2023, most properties in the area were negatively cash-flowing, but we found 2 at about a break-even level (20% down, 7.8% interest rate). With that said, we think you have 3 options here if you want to make it work:

• Go with a breakeven deal, but stay for the appreciation;
• Go all-in on lowball season and make cheap offers on every property on the market there (you'll p*ss some people off, but who cares);
• Go off-market - right now we're seeing over 70 properties in the area with at least 2 distress signals (such as the owner having multiple mortgages, the property being vacant, recent death etc.). Reach out to the owner, agree on a price to pay cash (or creative finance if you're feeling cheeky 👀) and she's yours!

2. North Campus After the most expensive area, we're now at the cheapest of our 4 recommendations. With a median sale price of $185k, and a YoY appreciation of 98% between Sep. '22 - '23 according to Redfin, this is one you want to pay attention to. The North Campus area presents an exceptional opportunity due to its proximity to the university campus. The close vicinity to the academic institution offers a steady stream of potential renters in the form of students and faculty. Furthermore, universities enjoy spending student loan money on flamboyant, yet unnecessary infrastructure to brighten up the area (which in turn often leads to more appreciation) - so keep your eyes peeled for that. The neighborhood isn't quite as "bougie" than Southern Orchards, but has a couple of bubble tea joints, independent coffee shops (you know how much we love those here at Coffee Clozers), and it's close to several yoga spots for those so inclined. Oh, and it's close to a skate park, so make sure to look into "pre-pubescent-vandal" insurance. This area is the best of the four in terms of cash-flow & appreciation balance.
3. South Eastmoor Our next two areas are more residential, and quiet. One could say they're more Shirley-Temple-esque compared to the Jäger bomb that is North Campus. South Eastmoor is the epitome of a family-friendly neighborhood, exhibiting low crime rates that bode well for peace of mind. The community spirit here is strong, amping up the charm and appeal of this quiet residential area. The local civic center spearheads a variety community events that foster a stronger bond among residents. Think gardening, halloween stuff, and litter picking campaigns - all the classic PC sh*t. But these things serve their purpose, and if a serene, safe, and community-oriented neighborhood sounds like your cup of tea for an investment, then South Eastmoor is worth checking out! Right now we're looking at a median sale price of $262k, and a 17% appreciation rate between Sep. '22 - '23 according to Redfin.
4. South of Main Last but not least, let's dive into South of Main. This is another residential gem that, like South Eastmoor, offers tranquility and a tight-knit community vibe. However, South of Main kicks it up a notch with a larger array of amenities, making it a holistic package. We're talking Pilates studios, nearby farmer's markets, and 10 minutes from the historic German Village. Plus, Capital University is just a stone's throw away, making it a fantastic location for students and faculty members. The cherry on top, though? A whopping 91% appreciation rate between Sep. '22 - Sep. 23 according to Redfin. So if you're in the market for an investment that offers lifestyle benefits to tenants with promising ROI, South of Main should be on your radar!

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The Talk of the Town

Unless you've been living under a Single Family Rock in the last year, you'll know that Bigger Pockets is currently buzzing with excitement over the potential real estate opportunities in Columbus. It seems like every time we're on there, realtors and investors alike are chomping at the bit to get in on the action. The city's stable economy, coupled with steady population growth, means rental demand is high. These factors contribute to healthy cash flow for landlords. But the real kicker? Columbus properties have been showing impressive appreciation rates. It's not just about immediate cash flow, but the potential for significant increases in property values over time. This exciting blend of profitability now and in the future has certainly lit a fire under the BiggerPockets community, making Columbus one of the most talked-about markets right now.