Dayton - a place to invest?

43 Replies

I will soon be having the funds from a 1031 exchange to invest in new properties. I became aware of some opportunities for small houses in the Dayton area, close to the university but now wonder if it is a good idea. Does anybody know the best property management company in the area as that is a very determining factor for me?

I am not an investor for appreciation but look for long term hold and cash flow. The biggest factor when looking at my current portfolio is the aspect of property quality (often driven by good advice at purchase and good property management) and a good, desirable area that always has good tenants, in good times and bad.

I hope the BP members can help me learn if Dayton is a good area and who to talk to on the property management end in case I buy 6-12 units

Thanks in advance for any help and input provided by the community

I just started investing in Dayton, as of the spring.  I am working with two different PMs, and will have to let you know. Have you traveled there yet? If I were you, I'd consider multi-units rather than SFHs.  Are you looking into Dayton proper or the suburbs?

Good question.  I wasn't seeing the returns for new purchases and studied.  I picked a bunch of cities and crossed them off one by one for various reasons.  Then I had a much shorter list.  Then, I took a road trip to a few places in OH, MO and Memphis.  I ended up in Dayton because I liked the city, the returns were great, it was at my price point with no loans, and it's a place I wouldn't mind visiting again and again.  Why'd you choose Dayton? @Axel Meierhoefer

I personally live and invest in Dayton myself but am not from here originally. I’ve been here for 15 years now and only stay bc of the real estate opportunity. 

As far as pm companies the only one I’d trust with my portfolio is Outside The Box Real Estate. They are investors themselves and do it the right way. 

If you ever want to chat specifics feel free to contact me directly 

I also live and invest in Dayton, OH and would not invest anywhere else, having sold my Detroit holdings and making excellent returns closer to home. In addition to Outside The Box real estate, people speak highly of Roost for pm services. After looking all over the area, I chose to invest in Dayton proper. Its particularly good to buy up emerging areas which only just recently priced a finished sf house high enough that a bank would make a loan on it. For a long time Dayton proper has been cash only, no profitable exit plan. Nowadays, people are working BRRRR and turnkey deals and things are really turning around for Dayton. Down by the university, the south park area is emerging. If you are coming to town, take a look also at north riverdale/southern shiloh or Belmont for some areas that are emerging.

Originally posted by @Axel Meierhoefer :

I will soon be having the funds from a 1031 exchange to invest in new properties. I became aware of some opportunities for small houses in the Dayton area, close to the university but now wonder if it is a good idea. Does anybody know the best property management company in the area as that is a very determining factor for me?

I am not an investor for appreciation but look for long term hold and cash flow. The biggest factor when looking at my current portfolio is the aspect of property quality (often driven by good advice at purchase and good property management) and a good, desirable area that always has good tenants, in good times and bad.

I hope the BP members can help me learn if Dayton is a good area and who to talk to on the property management end in case I buy 6-12 units

Thanks in advance for any help and input provided by the community

 Eh, it seems like an okay area. I just don't really know what it has going for it. What is the demand? What kind of industry do they have? They seem too small to much of a return. 

@Tom Ott I hear you. For me, I am not into appreciations so much and volume is not really my thing either. Steady is nice for me and I have been looking at Cleveland but there are many areas when I visited I would be afraid to walk at night. Maybe that's an undeserved view, but that's what I saw.

Originally posted by @Axel Meierhoefer :

@Tom Ott I hear you. For me, I am not into appreciations so much and volume is not really my thing either. Steady is nice for me and I have been looking at Cleveland but there are many areas when I visited I would be afraid to walk at night. Maybe that's an undeserved view, but that's what I saw.

 I understand. I didn't mean about appreciation, more just demand of the rentals in general. Do they have things that attract people to move or live there?

Where in Cleveland were you? If you were in the city, I believe you, but the suburbs are great investments. Quick drive to downtown for work, but more stable. Huge demand from potential tenants 

@Tom Ott I was in the downtown area and then for a few days in the area where the Eaton headquarters is. I am not saying Dayton is the best place in the world, but I like the steady and calm approach and the price/value/cashflow balance appears to be good

@Tom Ott Actually, Dayton currently has a shortage of quality housing - demand is high. Especially post-tornados. And the Dayton metro isn't as small as you think. It's small enough to be able to travel from one side to the other in about 30 minutes, but still big enough to enjoy a level of anonymity that anyone who's ever lived in a small town would appreciate.

There is a very diverse employment base here, including WPAFB, medical, biotech, defense manufacturing, and Amazon is opening a facility here soon - just to name a few. The days of Dayton as a rust belt city dependent on automotive manufacturing are long gone - a result of the recession 10+ years ago. Situated at the intersection of two of the busiest interstates in the country, this area is ripe for more business to move here.

As with any other city, there tends to be little appreciation in the C- and below areas, and the suburbs tend to appreciate modestly over time. And there are very few areas where I would be concerned about walking at night.

Originally posted by @Christina Carey :

@Tom Ott Actually, Dayton currently has a shortage of quality housing - demand is high. Especially post-tornados. And the Dayton metro isn't as small as you think. It's small enough to be able to travel from one side to the other in about 30 minutes, but still big enough to enjoy a level of anonymity that anyone who's ever lived in a small town would appreciate.

There is a very diverse employment base here, including WPAFB, medical, biotech, defense manufacturing, and Amazon is opening a facility here soon - just to name a few. The days of Dayton as a rust belt city dependent on automotive manufacturing are long gone - a result of the recession 10+ years ago. Situated at the intersection of two of the busiest interstates in the country, this area is ripe for more business to move here.

As with any other city, there tends to be little appreciation in the C- and below areas, and the suburbs tend to appreciate modestly over time. And there are very few areas where I would be concerned about walking at night.

 That's awesome! Always been curious about Dayton, never had a chance to do the research.

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@Axel Meierhoefer I love the Dayton area. It’s basically becoming a mixture of Columbus and Cincinnati. I grew up in southeastern Ohio and visited there often. I had a lot of buddies that went to the Hobert welding school and I have another buddy that owns a brewery downtown Dayton. Good luck and keep us posted!

BTW- side bar. I own a house in Escondido. Are you investing there at all?

@Axel Meierhoefer my biggest concern with that population growth numbers have been negative from what I see on Wikipedia and other sites. Has this trend stopped? I just worry about a long term investment in a place where more people are moving out than in?

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