Philadelphia PA vs Columbus OH - Which is better for an out of state investor?

[Ryan Louz]

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Which area would you recommend between these two?

I'm leaning towards Philadelphia because I personally find the area more interesting, and it seems like a more international city. 

My concern with Columbus is it reminds me a bit of Memphis TN a few years ago where it was flooded with investors and nearly all homes were out of state investor owned leading to a lot of competition to market rentals to tenants, and lower home appreciation as a result. 

However, I'm still open to choosing Columbus Ohio if it's a better investment than the Philadelphia area.

My priorities are:

- Landlord friendliness (I don't want to get stuck in a location where its hard to get uncooperative tenants out of a property)

- Friendlier Short Term Rental laws (AirBNB, etc) 

- Ideally lower property taxes (Not a huge concern if there isn't a big difference between the two)

- Better cash flow (If the different purchase price to cash flow is substantial, I'd want the better cash flowing area)

Which between these two regions would you recommend?

[Nadeem Alamgir]

Hey Ryan, if you're considering between other states I would check out Cleveland, OH.

It's a great opportunity for fix and flips and turnkey opportunities. The cost of entry is low, and cash flow is high. Has STR/MTR near the major clinics and hospitals.

Happy to connect and share more! 

[Matthew Constantini]

Hey Ryan!

Given your preferences and priorities, Philadelphia may indeed be the more suitable choice for you.

1. Landlord Friendliness: Philadelphia has landlord-friendly laws compared to some other cities. While tenant protections are strong, landlords still have legal recourse to evict non-paying or problematic tenants. It's essential to familiarize yourself with the local landlord-tenant laws and work with a reputable property management company to ensure smooth operations.
2. Short-Term Rental Laws: Philadelphia has regulations on short-term rentals, but it is still possible to operate Airbnb and similar platforms within the legal framework. Regulations may vary depending on the neighborhood, so research is crucial. Columbus also has regulations regarding short-term rentals, but it's essential to check the specific ordinances in each city.
3. Property Taxes: Property taxes in Philadelphia are generally higher than in Columbus, but the difference might not be significant enough to outweigh other factors. Additionally, higher property taxes can sometimes correlate with better city services and amenities, which can be attractive to tenants.
4. Cash Flow: While property prices may be higher in Philadelphia, rental demand is generally strong, especially in desirable neighborhoods. With careful research and property selection, it's possible to find properties with good cash flow potential. Columbus may offer lower purchase prices, but as you mentioned, oversaturation from investors could affect rental rates and appreciation in the long term.

Considering your interest in Philadelphia's vibe and your desire for a potentially better investment environment, it seems like Philadelphia aligns well with your preferences and investment goals. 

[Min Zhang]

Hey Ryan! Welcome to BiggerPockets! You’re in the right place to learn about remote investing. I can’t speak much about other markets, but as someone who started off in Columbus, I would say, the Ohio market in general is a very beginner friendly state to get started with your real estate journey. I have seen so much growth in Columbus when it comes to appreciation and job opportunities which I have experienced. On average, 80 people move into Columbus weekly.  As a real estate agent and an investor, I am on the market daily and explore opportunities for myself and my clients.

[Jonathan Bock]

@Matthew Constantini

AI prompt says Philly is landlord friendly?  The machine has no emotion and no clue 

[Patrick Drury]

@Ryan Louz
The Columbus market is a great option. The landlord laws and Airbnb laws are quite friendly here. I would stick to a more turnkey deal on the first one out of state then look at doing something like an Air bnb on the second or third deal. 

[Mike Paolucci]

Quote from @Ryan Louz:

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Hey @Ryan Louz. I can't speak much about Philly, but as a former OOS investor originally from San Francisco, I can attest to Columbus being a great market. I started investing here in 2021 and have been pretty happy with my decision. 

Columbus is experiencing some great growth due to the tech industry investing pretty heavily here in Central Ohio and the landlord laws are completely night and day compared to CA - especially with the "Justice for Renters Act" coming up on the November ballot. 

Happy to connect and share some of my experiences. 

[Remington Lyman]

Quote from @Ryan Louz:

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Which area would you recommend between these two?

I'm leaning towards Philadelphia because I personally find the area more interesting, and it seems like a more international city. 

My concern with Columbus is it reminds me a bit of Memphis TN a few years ago where it was flooded with investors and nearly all homes were out of state investor owned leading to a lot of competition to market rentals to tenants, and lower home appreciation as a result. 

However, I'm still open to choosing Columbus Ohio if it's a better investment than the Philadelphia area.

My priorities are:

- Landlord friendliness (I don't want to get stuck in a location where its hard to get uncooperative tenants out of a property)

- Friendlier Short Term Rental laws (AirBNB, etc) 

- Ideally lower property taxes (Not a huge concern if there isn't a big difference between the two)

- Better cash flow (If the different purchase price to cash flow is substantial, I'd want the better cash flowing area)

Which between these two regions would you recommend?

 I cannot speak to Philly but I love investing in Columbus, Ohio. I started in 2017. Originally grew up in Connecticut

[Samuel Diouf]

Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.

[Calvin Thomas]

Quote from @Ryan Louz:

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Which area would you recommend between these two?

I'm leaning towards Philadelphia because I personally find the area more interesting, and it seems like a more international city. 

My concern with Columbus is it reminds me a bit of Memphis TN a few years ago where it was flooded with investors and nearly all homes were out of state investor owned leading to a lot of competition to market rentals to tenants, and lower home appreciation as a result. 

However, I'm still open to choosing Columbus Ohio if it's a better investment than the Philadelphia area.

My priorities are:

- Landlord friendliness (I don't want to get stuck in a location where its hard to get uncooperative tenants out of a property)

- Friendlier Short Term Rental laws (AirBNB, etc) 

- Ideally lower property taxes (Not a huge concern if there isn't a big difference between the two)

- Better cash flow (If the different purchase price to cash flow is substantial, I'd want the better cash flowing area)

Which between these two regions would you recommend?

 Prob. Columbus, OH.  Philly is very blue and lots of laws you need to know and understand. If you are not registered, you cannot even rent out a unit.  

The blue genie is your hook-up in Columbus.

@James Wise

[Jimmy Lieu]

Quote from @Ryan Louz:

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Which area would you recommend between these two?

I'm leaning towards Philadelphia because I personally find the area more interesting, and it seems like a more international city. 

My concern with Columbus is it reminds me a bit of Memphis TN a few years ago where it was flooded with investors and nearly all homes were out of state investor owned leading to a lot of competition to market rentals to tenants, and lower home appreciation as a result. 

However, I'm still open to choosing Columbus Ohio if it's a better investment than the Philadelphia area.

My priorities are:

- Landlord friendliness (I don't want to get stuck in a location where its hard to get uncooperative tenants out of a property)

- Friendlier Short Term Rental laws (AirBNB, etc) 

- Ideally lower property taxes (Not a huge concern if there isn't a big difference between the two)

- Better cash flow (If the different purchase price to cash flow is substantial, I'd want the better cash flowing area)

Which between these two regions would you recommend?

I like Columbus Ohio because I see it being one of the biggest metropolitan cities in the next 10-20 years, all signs are pointing here! Population is growing aggressively and jobs are moving here especially with major employers like Intel, Google, Amazon, Nationwide, etc. On top of that, you have one of the biggest and best universities in the world here with Ohio State University. The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here. On top of that, you get great appreciation and very landlord friendly laws. As an investor and agent here, let me know if you have any questions or want to connect

[Simon Ashbaugh]

Hey Ryan, Columbus ticks all the boxes for your landlord-friendly investment goals! Faster evictions, relaxed rent control, and a short-term rental friendly environment all contribute to potentially higher cash flow.

[Nicholas L.]

@Ryan Louz

proceed with caution

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

it's not 2016 anymore.

[Moussa Koulbou]

I am in the same situation trying to decide between Columbus and Philadelphia. Looking for additional data points and insights on cash flow (rent to price ratio), cost of purchase, rent demand, income growth, appreciation etc… What class of properties present the best investment opportunities in both markets. What other investment prospect I need to consider for each city. I am interested in cash flow and appreciation with a long term investment horizon.

[Moussa Koulbou]

@Account ClosedOf the two I'd pick Arizona or Nevada.

The major markets in Arizona and Nevada got very crazy the last few years. It’s becoming increasingly hard to cash flow in Phoenix. 

[Alfath Ahmed]

Quote from @Ryan Louz:

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Which area would you recommend between these two?

I'm leaning towards Philadelphia because I personally find the area more interesting, and it seems like a more international city. 

My concern with Columbus is it reminds me a bit of Memphis TN a few years ago where it was flooded with investors and nearly all homes were out of state investor owned leading to a lot of competition to market rentals to tenants, and lower home appreciation as a result. 

However, I'm still open to choosing Columbus Ohio if it's a better investment than the Philadelphia area.

My priorities are:

- Landlord friendliness (I don't want to get stuck in a location where its hard to get uncooperative tenants out of a property)

- Friendlier Short Term Rental laws (AirBNB, etc) 

- Ideally lower property taxes (Not a huge concern if there isn't a big difference between the two)

- Better cash flow (If the different purchase price to cash flow is substantial, I'd want the better cash flowing area)

Which between these two regions would you recommend?

Hey Ryan, I would check out the Columbus market. It has been booming for the past couple of years with strong job growth and population increase. I personally invest here for both the cash flow and appreciation. I recommend looking into areas near economic bases - close to Nationwide Children’s Hospital, Ohio State Campus, New Albany, etc.

Most of my clients purchase turnkey investment properties in areas like Old North, Merion Village, Southern Orchards, Old Towne East/King-Lincoln Bronzeville, Driving Park, North Linden, North Hilltop, Franklinton, Reynoldsburgh, and Hungarian Village.

My BRRRR and Fix & Flip Investors like to buy in areas like Eastmoor, Hilltop, Whitehall, and Linden. These areas have appreciated a ton and have seen a lot of growth.

[James Wise]

Quote from @Calvin Thomas:

Quote from @Ryan Louz:

I'm an out of state investor from California with $150k in cash looking to buy a single family in either Philadelphia PA or Columbus Ohio.

Which area would you recommend between these two?

I'm leaning towards Philadelphia because I personally find the area more interesting, and it seems like a more international city. 

My concern with Columbus is it reminds me a bit of Memphis TN a few years ago where it was flooded with investors and nearly all homes were out of state investor owned leading to a lot of competition to market rentals to tenants, and lower home appreciation as a result. 

However, I'm still open to choosing Columbus Ohio if it's a better investment than the Philadelphia area.

My priorities are:

- Landlord friendliness (I don't want to get stuck in a location where its hard to get uncooperative tenants out of a property)

- Friendlier Short Term Rental laws (AirBNB, etc) 

- Ideally lower property taxes (Not a huge concern if there isn't a big difference between the two)

- Better cash flow (If the different purchase price to cash flow is substantial, I'd want the better cash flowing area)

Which between these two regions would you recommend?

 Prob. Columbus, OH.  Philly is very blue and lots of laws you need to know and understand. If you are not registered, you cannot even rent out a unit.  

The blue genie is your hook-up in Columbus.

@James Wise

[Jeremy Melloul]

Hey Ryan- I just moved from LA to Columbus specifically for the RE Market. Columbus is on the rise. Billions and billions of dollars are being invested in the city and central OH. Currently, Columbus is the fastest growing city in America.

Ohio is very Landlord Friendly. It’s a Red state so there are less regulations.

Airbnb is pretty solid here too. AirDNA gives it an overall market score of 93 (out of 100). No regulations other than getting a short term rental permit which costs $150. You can do that online. 

Unfortunately I don’t know much about the Philadelphia market but I do know Columbus is on the rise.

I hope I was able to help. Good luck!

[Eric Greenberg]

Hi @Ryan Louz if you do choose Philadelphia please do your homework and find someone to bounce questions off of who actually knows the city. 

[Gaetano Ciambriello]

Quote from @Jonathan Bock:

@Matthew Constantini

AI prompt says Philly is landlord friendly?  The machine has no emotion and no clue 

 Too funny. AI is a big fan of Kensington