If you haven’t been looking for HUD homes in Columbus, Ohio you probably don’t know the Hilltop. It is a large area on the west-side of Columbus, North and South of West Broad Street from the I-70 interchange going West to Hague Avenue. The area West of Hague up to the new Casino site (near Westland) is sometimes included in the Hilltop, as well.

Many homes on the Hilltop are rentals, although there are quite a few owner occupied homes in the area, as well. This is a blue collar neighborhood that is ideal for investors who want to buy a property to rent it for a positive cash flow.

In the current housing market, homes for sale on the Hilltop are cheap. You will find many bank-owned and HUD houses for sale in the $20K to $30K range. A few years ago homes sold for as much as $85,000 in that area.

Whether you buy a house to live in or to rent out, you should jump on the deal below. It is truly a STEAL!

This HUD home is in good condition. It comes with a gas fireplace, a wooden deck, a 2 car garage and lots of beautiful, original woodwork. It is almost in move in condition.

At LESS THAN $9 per sqft it must be one of the best deals I ever saw in Columbus. You certainly could not rebuild a house like that for such a low price.

Yes, it will need a few thousand dollars in work, and you can’t get FHA financing, because it is listed as uninsured. But you don’t want to go to a bank for a $11K loan anyway, because your closing costs may be 50% of the purchase price.

Now let’s talk about cash flow. Investors need to know how the return on their investment, before they spend money on a rental property.

3 bedroom homes on the Hilltop rent for at least $650 per month, possibly more. This means that your yearly rental income could be as high as $7,800. In just one and a half years an investor could recover the purchase price of this house and generate a huge, positive cash flow after just 18 months.

Here are the details on this specific HUD house (click on the address or the picture at the beginning of this article to see the property website).

289 S. Burgess Ave., Columbus, OH
Asking Price: $11,000
Comparable Sales: $50,000

Year Built: 1907
Sq Footage: 1,246
Bedrooms: 3
Bathrooms 1/0

Category: UnInsured
Schools: Columbus

Deadline: 4/19/2011
Eligible: Owner Occupants

This week I noticed that there are more cheap HUD listings than usual.  Most of these homes are on the Hilltop (west side), in Linden (north side)  and on the near South Side of Columubs. A price range between $15,000 and $20,000 is typical for these parts of town. Relists sell for even less, depending on the condition of the property.

These Columbus houses will need to be fixed-up. If you are lucky, you can find one where most of the rehab has already been completed by the previous owner. Bank financing is difficult to get for these properties, especially, if you need an FHA loan. You probably need to apply for a rehab loan, such as the FHA 203k, or use a private rehab lender to fund your deal.

The property at 287 S Eureka Ave (Hilltop) looks like a good deal. It is listed for only $23K. It is insured with a repair escrow, and comes with a new, 2-car garage. Homes on the Hilltop sold for around $80K only 2 years ago.

These Columbus HUD homes are good cash buys for investors and landlords. They make great rentals. Tenants will pay between $500 and $700 a month for the typical 3 bedroom home in these areas. There is strong demand for quality rental properties, as fewer people qualify for loans.

As an owner occupant you may still qualify for the first time buyer’s tax credit. For properties less than $80K you only get 10% of the purchase price. So don’t count on the full $8K from the IRS to fix up your new home.
  

Listing Statistics

Total homes available: 49 (last week: 58)

Owner occupants: 42
All bidders: 7
New listings: 17
Sunday deadline: 15
Relisted/Price reduced: 10
 
Median Price: $61,200 (last week: $72,500)
Average Price: $68,622 (last week: $71,572)
Highest: $179,000
Lowest: $14,000
 
Homes less than $50,001: 21 (last week: 22)
Between $50,001 & $100,000: 17 (last week: 22)
More than $100,000: 11 (last week: 14)
 
Call me TODAY at 975-9650 to see the newest HUD Homes this weekend!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI 
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650