Columbus, OH: 22.5% Return on Investment (2011)
Columbus was far ahead of most markets in its peak and adjustment periods, realizing its value height in 2005 and moving into oscillating periods of value stability and volatility following the financial crisis of 2008. Difficulties in the automotive sector have suppressed values in the upper Midwest, but Columbus possesses good fundamental economics for a sustained period of future growth. Currently, approximately 45% of listings are from foreclosures[1].
With a vibrant business community and the main campus of Ohio State University, Columbus is ideally positioned to create excellent value for investors. The cash flows available in this area are quite attractive, and can generate significant returns for investors that are not dependent on value appreciation. When appreciation re-emerges, it pushes ROI even higher as the impact of leverage amplifies returns. Between the solid industrial base, growing educational institutions, and established government entities, Columbus possesses many fundamentals that are expected to drive growth in the future.
Our general philosophy of investing expresses a preference for markets in business friendly environments such as Texas and the Southeast. However, Columbus is a shining gem of the upper Midwest that offers a balanced ROI profile for investors seeking exceptional opportunities that revolve around stable cash flows and benefit from upside appreciation. Even in times of value volatility, investors in Columbus possess a sustainable advantage, due to the healthy cash flows. By covering the expenses of your income property with cash flow, producing a baseline rate of return it leaves you poised to realize leveraged appreciation when the market volatility dissipates and a growth trajectory emerges.