Home Selling in Columbus>Question Details

tim willard, Home Buyer in Columbus, OH

I want to buy and rent properties. I am looking at my first. What is the best way to go about this?

Asked by tim willard, Columbus, OH Tue Nov 2, 2010

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17
Wendell, Good luck.You have received good advice from others. Make sure you keep good records and talk to a good accountant so as to take advantage of tax breaks. Take a good application from potential tenants.
0 votes Thank Flag Link Sun Dec 5, 2010
Best of good fortune to you. Sounds like you had a good team on the job. Congratulations.

Adam
0 votes Thank Flag Link Sun Dec 5, 2010
Adam, I found the answers to be very helpful. That combined with a lot of research helped me out a lot. My father has some experience in rehabbing properties, so he has some contacts that I was fortunate enough to take advantage of. I am represented by an excellent agent. As far as the property itself, it is on OSU's campus, so I didn't take a huge leap in making the offer. It will rent fairly easily, and it is updated a great deal.
0 votes Thank Flag Link Sat Dec 4, 2010
Congratulations Wendell on the offer! I have worked in the OSU campus /campus-area with owner occupants and have heard a variety of stories. Mostly humerous. I am curious if you found the advice from Trulia helpful, and if you selected an agent to represent you. If so, how did you make your decision who to use?
0 votes Thank Flag Link Fri Dec 3, 2010
I appreciate all of the great responses guys. I am currently waiting to hear back on a bid that I placed on a duplex. The upper level is already rented out until July 2011, and I will be living in the lower unit. It's located on OSU's campus, so renting it should never be an issue.
0 votes Thank Flag Link Thu Dec 2, 2010
Wendell,
Will you be paying cash or need financing? If you need financed you want to get pre-approved from a lender first. doubles or twin singles are always good for new investors. As typically one side rent pays the mortgage. Feel free to contact me, as I have several investor clients and know several lenders that will work with investors.
http://www.AngelaCookHomes.com
0 votes Thank Flag Link Sun Nov 7, 2010
Thank you for your question about purchasing an income property. Please be advised that you should use a local agent who specializes in income properties. There is an analyzer on my website that can help you evaluate any potential income properties at http://www.orangecountyrealestateresource.com/commercial_rea…
0 votes Thank Flag Link Fri Nov 5, 2010
Hi Wendall, you should find a realtor who is knowledgeable in both rentals and sales who knows the market well in the area that you are looking in. They should be able to tell you what your yearly return on your investment will be for each property. Always do your homework before buying an investment property.
0 votes Thank Flag Link Fri Nov 5, 2010
In the Columbus, Ohio market, depending on price range, you are lucky to get .75% and 1-1.1% would be doing very well. As an agent, investor, and working with investors, I will caution all readers of answers to be very careful when reading statistical information in other markets, or on a national level. In my own previous answer, I strongly advise you find an agent that appears knowledgeable, or interview several, prior to deciding what to do. I, of course, am happy to help you.
0 votes Thank Flag Link Fri Nov 5, 2010
If you decide to rent the property, you want to rent it for at least 1.5 to 3 percent of the purchase price. It is necessary to make sure your rental income will cover your out of pocket expenses such as the mortgage payment, taxes, insurance, maintenance, repairs and vacancy rate. Right now, demand is higher than supply. Check with local real estate agents or call rental ads to see what the going rental rate is within the areas you are looking to purchase a property.

Try an investment calculator such as the one at goodmortage.com. Go to their web site: http://www.goodmortgage.com/Calculators/Investment_Property.html. This will give you a good idea of the financial situation if you decide to rent an investment property.

There are tax benefits in any real estate investment whether it be rental homes, apartments, vacant land, commercial buildings, industrial, shopping centers, or warehouses. Check with your local tax advisor before entering into a purchase agreement for any investment property to make sure you qualify and follow the strict requirements.
0 votes Thank Flag Link Thu Nov 4, 2010
Hello - I work with several investors and also have agents on my staff who own rental properties. I have seen the good, bad and ugly of rental properties! If you are looking to buy a property that is already a rental, you'll want to get the expense report AND the schedule E tax return. The expense report is what they show buyers but the schedule E is what they report to the IRS as income and they are often very different. You'll also want to get a good accountant who can go over depreciation strategies with you. If you are doing this to make money (!) it is a bit more complicated than just buying and leasing. The way you treat the income and expenses can be what determines if you make money or not. You can actually have income from a property while at the same time showing a loss to the IRS if you structure the property correctly. Conversely, you can show income to the IRS while losing money if you structure it incorrectly! I can offer my assistance if you'd like. dturlo@homecentralrealty.com.
0 votes Thank Flag Link Wed Nov 3, 2010
Wendell, The first step is to meet with an agent who is experienced in representing investors. I have several investor clients whom I continue to notify when good investment properties hit the market. I will also educate you as to the risks and benefits of owning investment properties, and will do a market analysis that will give you the the costs and proceeds of each specific property. I will discuss with you what your goals are, and connect you with an appropriate lender who can help you with those specific goals. There are many financing options we can discuss. The next step is to find the right property and get started! I have contacts that will help you with the process of finding and screening the right renters as well. Please call me and let's get started1 (614) 774-7982.
0 votes Thank Flag Link Wed Nov 3, 2010
Hi Wendell, my suggestion is to start small. Go for a small , preferably detached home to start with. Also, buy something that may not need too much work before it can be rented. Once you are familiar with the process and realize the pros & cons, you may venture into larger or more complex purchases.
Web Reference: http://www.RealTriangle.com
0 votes Thank Flag Link Wed Nov 3, 2010
Meeting an agent who will supply you with information about the risks and rewards of owning investment property and explaining the differences in buying and financing an owner occupied home is extremely important. Making sure that conversation has no selling of the idea is very important. Once you understand these differences, you and your agent can define the parameters surrounding the investment goals and determine the next steps as a team. It is very important that you select an agent who knows what to do, and once you've decided, to remain commited to working with that agent exclusively to keep agents from selling you a property as opposed to helping you buy a property.
0 votes Thank Flag Link Wed Nov 3, 2010
Wendell:
I will be happy to go over this process. I can be reached in my office here in central FL 407.696.4947 or on my cell phone: 407.310.4908.
I look forward to meeting with you.
LL
0 votes Thank Flag Link Wed Nov 3, 2010
wendell,I can put you intouch with the right person,if your referring to ohio then I can send you info.You want to start off,making sure the numbers alway work.
0 votes Thank Flag Link Wed Nov 3, 2010
Contact me and I will show you some properties, I have a duplex coming on the market soon which would be great to buy and then rent. Call me at 530-409-9908 and let me know which areas you are interested in.
0 votes Thank Flag Link Tue Nov 2, 2010
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