Looking for cash flow in Ohio

Buying & Selling Real Estate
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Looking for cash flow in Ohio

Lesley Whitley
Southern California · Member since 2019 · 44 posts · 33 votes

I keep hearing that if you want cash flow, buy in Ohio.   I have been analyzing small multi family properties in Toledo, Akron and Cleveland areas.  When I plug the numbers into the Bigger Pockets calculator, I am ALWAYS showing a negative cash flow.  Over and over again, a negative cash flow.  I have great realtors I that are helping me, but I am wondering what your experiences are getting cash flow in today's market?  Are property prices just too high right now?  We are ready to buy, but not finding any deals.  If anyone has words of wisdom, this fairly new out of state investor would greatly appreciate your help.

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Brandon GoldsmithBusiness Member
Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
4y

Those cities in Ohio you mentioned definitely still cash flow very well so I would just double-check everything you are putting in to the calculator @Lesley Whitley

[email protected]614-963-3340
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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Lesley Whitley
    Why don't you post an example of a deal so local people can provide feedback on how you are running numbers? It could just come down to how you are running numbers. I am personally still seeing deals in Columbus and Cleveland that cash flow. 

    [email protected]614-412-4565
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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Lesley Whitley:

    I keep hearing that if you want cash flow, buy in Ohio.   I have been analyzing small multi family properties in Toledo, Akron and Cleveland areas.  When I plug the numbers into the Bigger Pockets calculator, I am ALWAYS showing a negative cash flow.  Over and over again, a negative cash flow.  I have great realtors I that are helping me, but I am wondering what your experiences are getting cash flow in today's market?  Are property prices just too high right now?  We are ready to buy, but not finding any deals.  If anyone has words of wisdom, this fairly new out of state investor would greatly appreciate your help.

    Hey Lesley, I'm still seeing 1% and positive cash flowing deals here in Columbus Ohio. How are you calculating your numbers? Also, one other thing I would say is adjusting your returns with the current market. Don't be the investor who needs 10% cash on cash no matter what. With current interest rates, you won't be able to get 10% coc return, but maybe you can get 6% or 5%. I've done quite a few BRRRRs and flips here and have my own successful rental portfolio and this has always been my investing philosophy. As a local investor and agent, let me know if you have any questions or want to connect.

    [email protected]614-300-7535
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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y

    Hello Lesley, I personally own 8+ units over there in Cleveland and it's providing me a steady cash flow. I have also brokered a lot of deals recently in Cleveland, the cash flow is king up there, however appreciation is lacking and seems to be along with the US national average. You mostly will see 1% rule deals over there but 2 and 3 percenters tends to come up from time to time. Which areas in Cleveland are you currently looking at?

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  • Abram Torres
    Rental Property Investor · Rancho Cucamonga, CA · Member since 2020 · 15 posts · 9 votes
    3y

    @Lesley Whitley I'm a wholesaler in OH. If you want some cashflowing deals, shoot me a message, and I'll get your criteria to start sending you some deals. 👋

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  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3y
    Quote from @Brandon Goldsmith:

    Those cities in Ohio you mentioned definitely still cash flow very well so I would just double-check everything you are putting in to the calculator @Lesley Whitley


     Brandon is right. There are different ways of underwriting investment deals.

    Here are a couple things that I put in when analyzing investment deals  (10 % PM cost , 5 % capEX, 10% maintenance). I would also make to check the auditor to see what the taxes are and consult an accountant or tax adjustor to estimate what taxes might get re-assessed to. I would also take a look at the time-value of money and check to see how much money am i loosing and what is my cost over the next 2 years before I re-finance. 

     I would also recommend that you look at locations. Real Estate investing generates wealth by buying at the right price in the right location and letting appreciation take over. 

    [email protected]614-802-5698
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