CONSIDERING HOW INVESTMENT PROPERTY OWNERSHIP COULD CHANGE YOUR LIFE?
What Investors Can Expect
So you’re considering jumping into the world of investment property! I know I caught the bug more than 17 years ago and haven't looked back.
There is much more to consider and at stake when buying and selling investment properties compared to traditional residential real estate -- which is why I’m here to coach you through every step to make sure you don’t miss any details or opportunities and you do maximize your goal-specific investment.
If this is your first time purchasing for pure investment purposes, click through the icons to learn more about what you might expect in the process.
Andrea’s Investment Property Journey
In 2006, less than a year after graduating from Ohio University, I moved to Columbus. I quickly learned that at that time home ownership was equal to, if not less expensive, than paying rent, and the housing market hadn’t crashed yet so the banks were lending money with little to no money down. So, I took advantage of the opportunity, and bought my first property - a new-build condo in the Lifestyles Community neighborhood in Dublin, Ohio. I loved making it my own by hand painting the walls (some with crazy bright colors), planting sunflowers in the backyard (which eventually grew taller than the privacy fence), and housing several friends over the years that needed a place to live.
A few years later, I relocated to Cincinnati for work and to find love, and at that time the housing market had crashed. I couldn’t sell the condo for anywhere near what I had paid for it – brand new condos sat vacant while the builder offered buyer incentives, appliance upgrades, fireplaces, and much more. I had about $30,000 in negative equity with barely 1/8 of that in the bank. So, I did the only thing that seemed logical at the time – hire a property manager and relocate – and that’s exactly what I did!
Less than two years later and love was not found in Cincinnati, so it was time for me to move back to Columbus. My condo was vacant with a for rent sign in the window, which was great because that meant I was moving home! When I called my property manager to tell him to remove the “for rent” sign, I was taking ownership again, he replied, “Andrea, a couple from Michigan drove to Columbus in a Uhaul, did a walk through and signed a lease on the spot. They’ve already moved in.” Uh oh!
Being newly single and unable to move home could have left me in a rough spot mentally, but instead I decided to take advantage of the situation and move to an area of Columbus I was not very familiar with, which brought me to Grandview Heights. I moved into a rental, quickly discovered that I enjoyed being a landlord from afar, and decided I was ready to buy my next property.
After losing 13 contracts- some of which I was outbid on and others I backed out of after inspections - I finally found my next property with the 14th! I purchased a condo on Ashland Ave in Grandview Heights! It was quite the opposite of the brand new-build condo I had previously purchased, and needed a full renovation. Without the budget to rent and own, I made the sacrifice to live through the renovation. Literally! Everything I owned went into the two bedrooms while the entire first floor was gutted and rebuilt. The master bedroom became the place I slept, hung out on the couch, and microwaved my dinners. For several months I lived like this and once the renovation was complete, it was totally worth it! I lived there just over 2.5 years and ended up converting it to my next rental.
Above, the Grandview Heights area condo I bought in 2014
With housing prices on the rise and rates on the decline, I decided I was ready for my next opportunity! Leveraging the market, tax deferment laws, and low interest rates I sold my Grandview Heights condo and essentially traded up (1031 Exchange) to my first 4-family located on Elmwood Ave in the Grandview Heights area. I went from 2 rental units to 5 rental units, and found I could handle managing them myself to maximize my rental income. So that’s exactly what I did!
I now have a total of 13 rental units (my original Dublin condo, two 4-families and two duplexes in the Grandview Heights area)! While I plan to continue to buy and/or trade up, my true goal is financial freedom with the ability to enjoy early retirement with residual rental income.
I have come a long way since being 23 years old and purchasing my first property. I have made mistakes, but mostly I have learned a lot about real estate market trends, real estate tax incentives, and leveraging opportunities, even during times I could have been down and out. There is always a silver lining, we just have to be open to finding what it is!
Andrea’s Personal Investment Property Purchases Timeline
2006: bought my first property - a new-build condo in Dublin, Ohio
2014: bought and fully renovated a condo in the Grandview Heights neighborhood in Ohio
2019: did a 1031 exchange, selling the renovated condo to buy my first multi-family property with four, 1BR 1BA units (also in Grandview Heights area)
2021: bought my second multi-family property with four, 1BR 1BA units, located in the Fifth by Northwest neighborhood of Columbus
2022: bought my first duplex in Grandview Heights area, where each side has 2BR 1BA
2022: bought my second duplex, which was already fully rehabbed, in Grandview Heights area where each side has 2BR and 1.5BA
Hopefully if you’ve read this far you have a sense of my passion for real estate and investment properties! I love sharing what I’ve learned and strategizing with those that are considering being an investor for residual income. I also enjoy working with first time home buyers, and those planning to move to a larger home.
While I can understand some uncertainty may exist with the current market due to increased interest rates, there are still ways to leverage our current market situation to purchase your first home, the home of your dreams, and/or an investment property. One strategy I will share is the potential to assume a current loan. Essentially, taking over a current loan with a low interest rate in lieu of putting a new loan on a property of interest (note not all loans are assumable).
Let’s chat about your goals! I truly love real estate and get great enjoyment being strategic with an eye for details to get my clients the property they desire. I look forward to speaking with you soon!
All the best,
Andrea Rauckhorst (“Rock horst”), and Investment Property Coach & licensed Realtor® working with Red 1 Realty.
What would you do with financial freedom gained from being a smart investment property owner? I travel!
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