A few weeks ago, this article caught my eye: Home Flipping Investors Abandon Columbus.
It’s based on a survey by Realtor.com that shows that Columbus experienced an 18.8% drop in home flipping last summer. That’s a steeper decline than in any other large metro area in the country.
You are probably asking yourself if this is still a good time to invest in real estate?
It is challenging to find “good deals” in today’s hot market. However, the housing market is changing and there are new opportunities for smart investors.
Rehabbing and Flipping Homes is Popular
In the past couple of years some Columbus neighborhoods saw a major resurgence in house flipping. I am thinking of areas like Merion Village (S. of German Village), Southern Orchard (S of Children’s Hospital), Old Town East and West Gate.
Most investors try to buy distressed properties at substantial discounts. You still see quite a few dilapidated homes in these areas, but good deals are hard to come by.
If you are looking for “light” rehabs you will find opportunities in the suburbs. Subdivisions built in the 1970’s and 80’s are full of homes that have never been updated. Many original owners want to downsize, but don’t have the means or money to renovate their house to sell for top dollar.
I can help you locate these properties and negotiate with the seller. Most importantly, I can advise you on the improvements that will yield the highest return when you sell.
Where to Find the Deals?
Good deals are hard to find as distress sales have reached a 15-year low.
According to Columbus Realtors only 3.2% of all sales were “lender mediated” – meaning in foreclosure. Therefore, you won’t find a lot of bank owned or HUD properties.
The Franklin County Sheriff is still selling foreclosed properties. Last fall they switched to online auctions. There are slim pickings, as only 12 properties are listed for next Friday’s auction.
At Sheriff’s sale you buy “site unseen”. You are legally not allowed to enter the house, so there’s considerable risk for bad surprises. And the starting bid is 2/3 of the auditor’s value.
Here are a few other sources for investment properties:
Before you even think about bidding on homes, I strongly suggest we sit down and discuss your investment strategy. Do you plan on rehabbing and flipping, or do you want to hold on to properties long term and become a landlord?
Call or text me TODAY at (614) 975-9650. Let me help you develop a profitable investment strategy!