Indianapolis vs Cincinnati vs Cleveland - First time investor
Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes
Indianapolis vs Cincinnati vs Cleveland - First time investor
Most Popular Reply
Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 378 votes
3yMy biggest questions for you would be are any of these markets close to where you live right now? Have you visited any of these markets to see where to stay away from? Sounds like you're looking for cash flow if you're choosing from these markets. Cleveland and Indy will probably cash flow the best but there are parts of Cleveland that have very high taxes.
Good luck!
40 Replies
- Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 378 votes3y
My biggest questions for you would be are any of these markets close to where you live right now? Have you visited any of these markets to see where to stay away from? Sounds like you're looking for cash flow if you're choosing from these markets. Cleveland and Indy will probably cash flow the best but there are parts of Cleveland that have very high taxes.
Good luck!
- Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3y
Quote from @Nathan Harden:
My biggest questions for you would be are any of these markets close to where you live right now? Have you visited any of these markets to see where to stay away from? Sounds like you're looking for cash flow if you're choosing from these markets. Cleveland and Indy will probably cash flow the best but there are parts of Cleveland that have very high taxes.
Good luck!
Hi Nathan - I'm in California but have family fairly close to Indy and Cincy. I don't have the capital now to invest in California, so I will have to start out in the midwest in one of these 3 cities.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Amy Mitchell:
Hi Guys,
I'm a new/first-time investor looking to get my first investment property, but I'm having a difficult time deciding between 3 markets. I'm considering Indianapolis (near fountain square), Cincinnati, or Cleveland. If I invest in Cleveland I would only be interested in small multifamily properties, for Indy and Cincy I would be looking to invest in single-family homes which I would turn into STR or MTR. Any info from anyone investing in these markets would be greatly appreciated.
Well 1st , are you cash I assume no. That will make a big difference. If you are not cash buying a MF for a good price in Cleveland will be very difficult, there simply is no inventory. Also its ALL about numbers. Lasty do not buy in any of these markets without a team in place.
Good luck
- Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3y
Quote from @Bob S.:
Quote from @Amy Mitchell:
Hi Guys,
I'm a new/first-time investor looking to get my first investment property, but I'm having a difficult time deciding between 3 markets. I'm considering Indianapolis (near fountain square), Cincinnati, or Cleveland. If I invest in Cleveland I would only be interested in small multifamily properties, for Indy and Cincy I would be looking to invest in single-family homes which I would turn into STR or MTR. Any info from anyone investing in these markets would be greatly appreciated.
Well 1st , are you cash I assume no. That will make a big difference. If you are not cash buying a MF for a good price in Cleveland will be very difficult, there simply is no inventory. Also its ALL about numbers. Lasty do not buy in any of these markets without a team in place.
Good luck
Would it make sense to first decide on a market, then start building the team? I would hate to waste anyone's time when I'm really not sure exactly where to start investing. And I'm not cash buying, I have the down payment ready to go.
- Real Estate Agent · Youngtown Ohio · Member since 2019 · 66 posts · 46 votes3y
If you consider the Youngstown/Warren area shoot me a message id be happy to help you out. Theres a 5 unit in Cleveland right now 3,341 monthly gross rent asking 185k
- Flipper/Rehabber · Indianapolis, IN · Member since 2015 · 28 posts · 21 votes3y
@Amy Mitchell if you are trying to cashflow I don't think Fountain Square is not where you want to aim. The price point will be on the higher side which will limit cashflow opportunities there. Areas like that either flipping or appreciation is the play for investing.
If cashflow is what you're going for there are several other solid areas around the city that I think you should be aiming for. Somewhere in a B or B- neighborhood or something and not in an area where houses are selling for just under $1m.
I don't know Cincy as well as I do Indy, but I have an arm of my construction company in both Indy and Cincinnati and I can help with rehab and being boots on the ground in both of those markets.
As for Cleveland I will be no help with sadly.
Give me a shout if I can help out!
- Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes3y
Quote from @Amy Mitchell:
Hi Guys,
I'm a new/first-time investor looking to get my first investment property, but I'm having a difficult time deciding between 3 markets. I'm considering Indianapolis (near fountain square), Cincinnati, or Cleveland. If I invest in Cleveland I would only be interested in small multifamily properties, for Indy and Cincy I would be looking to invest in single-family homes which I would turn into STR or MTR. Any info from anyone investing in these markets would be greatly appreciated.
A good agent should be able to connect you with a team. For the market, Cleveland is really good, and If you figure out what areas you want to buy in and don't get caught in analysis paralysis, it can be really strong
- 3ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Hi Amy, I am in Cincinnati, a city known for cash flow. But also goof appreciation in the right areas. As well as that, I can point you around northern ky to do an STR! DM me if you are interested!
Sam McCormack Realtor - Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3y
Quote from @Aaron Manship:
@Amy Mitchell if you are trying to cashflow I don't think Fountain Square is not where you want to aim. The price point will be on the higher side which will limit cashflow opportunities there. Areas like that either flipping or appreciation is the play for investing.
If cashflow is what you're going for there are several other solid areas around the city that I think you should be aiming for. Somewhere in a B or B- neighborhood or something and not in an area where houses are selling for just under $1m.
I don't know Cincy as well as I do Indy, but I have an arm of my construction company in both Indy and Cincinnati and I can help with rehab and being boots on the ground in both of those markets.
As for Cleveland I will be no help with sadly.
Give me a shout if I can help out!
Hi Aaron - Which areas are pretty solid for cashflow?
- Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes3y
I'm in California (Bay Area) and it's really difficult to buy here at these price points and cash flow positive (more like negative) now so I'm focusing out-of-state. I have a SFH in the Indianapolis metro area (suburb in class A neighborhood) but I bought it almost 10 years ago (used to live there). Depending on what county you're looking at, Hamilton County property tax rates are much higher for investors than primary home owners, 2.771% vs. 1.08%. I really like Carmel, Westfield, Noblesville and Fishers from an appreciation perspective, nice suburbs with good schools, but the prices are high now. My property taxes went up significantly which reduced my cash flow but my tenants are paying down my mortgage and I bought it for low price and low interest rate so I'm keeping the house
I'm looking in Indianapolis (Marion County) but I'm trying to narrow down the areas - I'm communicating with an investor friendly realtor. Being inside the 465 circle and the East side usually has lower priced homes than the West and North sides. I considered the Fountain Square area. I'm looking for SFH or duplexes (which seem to be rare), heavily leaning towards turn key or something with minor rehab (cosmetic work). I have a partial team in place for Indy: property manager, handyman, painter, roofing company in place, no contractor (yet). I'm also looking at Cincinnati.
- Rental Property Investor · centervill in · Member since 2019 · 86 posts · 49 votes3y
@Sam McCormack
Well spoken Sam.
Me and my partners own stuff in Cincinnati Dayton Ohio Dayton Kentucky Piqua Ohio and Indianapolis In
We also have friends that own stuff in Cleveland and my impression is that between all of the cities around the city of Cleveland is the least landlord friendly.
For me it's by itself keeps me away.
Also you mentioned having family that are quite close to Indy and cincy to begin with I would go where it is for you the easiest to begin with.
- 3yTyler LingleBusiness MemberReal Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votesAgreed. It's not so much, which have the best macroeconomic trends. It's much more: Where can you develop moment, connections, and market insight the quickest. Happy to chat about Indianapolis!
Quote from @Nathan Harden:
My biggest questions for you would be are any of these markets close to where you live right now? Have you visited any of these markets to see where to stay away from? Sounds like you're looking for cash flow if you're choosing from these markets. Cleveland and Indy will probably cash flow the best but there are parts of Cleveland that have very high taxes.
Good luck!
Roots Realty Co. 562 Reviews - Real Estate Agent · Indianapolis, IN · Member since 2022 · 45 posts · 52 votes3y
Quote from @Amy Mitchell:
Quote from @Aaron Manship:
@Amy Mitchell if you are trying to cashflow I don't think Fountain Square is not where you want to aim. The price point will be on the higher side which will limit cashflow opportunities there. Areas like that either flipping or appreciation is the play for investing.
If cashflow is what you're going for there are several other solid areas around the city that I think you should be aiming for. Somewhere in a B or B- neighborhood or something and not in an area where houses are selling for just under $1m.
I don't know Cincy as well as I do Indy, but I have an arm of my construction company in both Indy and Cincinnati and I can help with rehab and being boots on the ground in both of those markets.
As for Cleveland I will be no help with sadly.
Give me a shout if I can help out!
Hi Aaron - Which areas are pretty solid for cashflow?
Hi Amy, I just replied to you by DM.
I'm excited for you. I left Indianapolis about five years ago; when I came back I was SHOCKED at the nooks and crannies that have been resurrected in this City. As I have observed, experienced, and studied, it's the underlying politics and economics of this city that make the current positioning and future trajectory of Indianapolis so strong. Cincinnati and Cleveland are beautiful and we're all similar cities in a lot of ways.
Indianapolis, though, is showing 40% better GDP over the last decade; remarkably low unemployment; surge in tech; and our median household income (+21%) is improving at nearly double national average rate (+12%).
Hope this helps and I'm excited to talk with you.
- Real Estate Agent · Member since 2022 · 31 posts · 25 votes3y
New MFH properties hitting the market nearly every day in Cleveland....there is a lot of competition though so be prepared and understand you will have some bidding wars. My team can help if you need some boots on the ground here
- Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3yHi - Becca
Quote from @Becca F.:
I'm in California (Bay Area) and it's really difficult to buy here at these price points and cash flow positive (more like negative) now so I'm focusing out-of-state. I have a SFH in the Indianapolis metro area (suburb in class A neighborhood) but I bought it almost 10 years ago (used to live there). Depending on what county you're looking at, Hamilton County property tax rates are much higher for investors than primary home owners, 2.771% vs. 1.08%. I really like Carmel, Westfield, Noblesville and Fishers from an appreciation perspective, nice suburbs with good schools, but the prices are high now. My property taxes went up significantly which reduced my cash flow but my tenants are paying down my mortgage and I bought it for low price and low interest rate so I'm keeping the house
I'm looking in Indianapolis (Marion County) but I'm trying to narrow down the areas - I'm communicating with an investor friendly realtor. Being inside the 465 circle and the East side usually has lower priced homes than the West and North sides. I considered the Fountain Square area. I'm looking for SFH or duplexes (which seem to be rare), heavily leaning towards turn key or something with minor rehab (cosmetic work). I have a partial team in place for Indy: property manager, handyman, painter, roofing company in place, no contractor (yet). I'm also looking at Cincinnati.
I'm also leaning towards something more turn-key or with little cosmetic work. I've been searching Indy for duplexes and rarely find them (at least in my price range). A SFH that I can use as an STR/MTR is my goal. I have also been looking in Cincy near the Walnut Hill area, but I'm not seeing much in my price range. Are you looking for LTR only? - Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3yHi Josh - Are you familiar with the Airbnb regulations in Indy?
Quote from @Joshua Matthews:
Quote from @Amy Mitchell:
Quote from @Aaron Manship:
@Amy Mitchell if you are trying to cashflow I don't think Fountain Square is not where you want to aim. The price point will be on the higher side which will limit cashflow opportunities there. Areas like that either flipping or appreciation is the play for investing.
If cashflow is what you're going for there are several other solid areas around the city that I think you should be aiming for. Somewhere in a B or B- neighborhood or something and not in an area where houses are selling for just under $1m.
I don't know Cincy as well as I do Indy, but I have an arm of my construction company in both Indy and Cincinnati and I can help with rehab and being boots on the ground in both of those markets.
As for Cleveland I will be no help with sadly.
Give me a shout if I can help out!
Hi Aaron - Which areas are pretty solid for cashflow?
Hi Amy, I just replied to you by DM.
I'm excited for you. I left Indianapolis about five years ago; when I came back I was SHOCKED at the nooks and crannies that have been resurrected in this City. As I have observed, experienced, and studied, it's the underlying politics and economics of this city that make the current positioning and future trajectory of Indianapolis so strong. Cincinnati and Cleveland are beautiful and we're all similar cities in a lot of ways.
Indianapolis, though, is showing 40% better GDP over the last decade; remarkably low unemployment; surge in tech; and our median household income (+21%) is improving at nearly double national average rate (+12%).
Hope this helps and I'm excited to talk with you.
- Real Estate Agent · Fort Pierce, FL · Member since 2022 · 44 posts · 11 votes3y
Cincinnati is a great area to invest. I know an outstanding agent in that area who will be able to point you in the direction you're looking for. He lives in Cincinnati and works solely with Bp investors. I'll Pm his information.
- Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes3y
Yes, I'm only looking for LTR. I may consider MTR since I could see travel nurses and professionals being a potential market. As far as STRs the subdivision I have my SFH in the Indianapolis area has banned any rentals of 30 days or less. Some cities are putting in restrictions with STRs. I view STRs as more like the hospitality industry and to me it seems like a lot of maintenance although your gross rents would higher than LTR. With my LTR, with proper tenant screening and a property manager, I rarely hear from my tenants, which is a good thing. I paid for a window repair 10 months ago and so far it's been low maintenance. If you find the right market with STR it would work.
- 3yJake KnightPro MemberProperty Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
@Amy Mitchell Hey Amy, you may call some local PM's in each city to get a feel for what they're seeing realtime. I can say for my market here in Indy, there is a lot going on and there are quite a few areas you can target. It really just depends on what your ultimate goals are. If you are looking for cash flow, Anderson, IN is the best greater Indy market you can target. We've helped investors purchase around 30 properties up there over the past couple of years. If you're are looking more for appreciate, they (PM) can help lead you to good areas to target. I'm happy to have that conversation with you should you ever want to. Happy hunting!
- Investor · Los Angeles · Member since 2019 · 22 posts · 10 votes3y
Jake Knight is right Anderson IN is a great area for cash flow properties. I have a few properties out there and have been very happy with the returns. Its hard to find that kind of cash flow elsewhere. I personally look for small multifamily properties 2-4 units.
- Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3y
Quote from @Jake Knight:
@Amy Mitchell Hey Amy, you may call some local PM's in each city to get a feel for what they're seeing realtime. I can say for my market here in Indy, there is a lot going on and there are quite a few areas you can target. It really just depends on what your ultimate goals are. If you are looking for cash flow, Anderson, IN is the best greater Indy market you can target. We've helped investors purchase around 30 properties up there over the past couple of years. If you're are looking more for appreciate, they (PM) can help lead you to good areas to target. I'm happy to have that conversation with you should you ever want to. Happy hunting!
Hi Jake,
How far is Anderson from Indy?
- Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3yHi Sara,
Quote from @Sara Aviles:
Jake Knight is right Anderson IN is a great area for cash flow properties. I have a few properties out there and have been very happy with the returns. Its hard to find that kind of cash flow elsewhere. I personally look for small multifamily properties 2-4 units.
I'm also in Los Angeles but looking to invest in IN. I'm not familiar with Anderson, is it hard to find multifamily properties for sale there? Do you only invest in Indiana? I'm ready to get my first property, but now have to start putting together my team. Do you have any recommendations for lenders? - Investor · Los Angeles · Member since 2019 · 22 posts · 10 votes3y
Its not hard to find multifamily properties there, but it is difficult to find good ones. Make sure to always do your inspections as these are older homes and you want to make sure they are structurally stable. Right now I only invest in Indiana. I used to have properties in CA and Ohio, but found a great team in Anderson IN so that is now my main focus. Feel free to message me and I can hook you up with a great lender and property management team out there.
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes3y
I have brokered a lot of deals recently in Cleveland for the cash flow, the cash flow is king up there, however appreciation is lacking and seems to be along with the US national average. Whereas cities like Columbus and Cincinnati have some cash flow, but tons of appreciation!
- Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes3y
Quote from @Becca F.:
I'm in California (Bay Area) and it's really difficult to buy here at these price points and cash flow positive (more like negative) now so I'm focusing out-of-state. I have a SFH in the Indianapolis metro area (suburb in class A neighborhood) but I bought it almost 10 years ago (used to live there). Depending on what county you're looking at, Hamilton County property tax rates are much higher for investors than primary home owners, 2.771% vs. 1.08%. I really like Carmel, Westfield, Noblesville and Fishers from an appreciation perspective, nice suburbs with good schools, but the prices are high now. My property taxes went up significantly which reduced my cash flow but my tenants are paying down my mortgage and I bought it for low price and low interest rate so I'm keeping the house
I'm looking in Indianapolis (Marion County) but I'm trying to narrow down the areas - I'm communicating with an investor friendly realtor. Being inside the 465 circle and the East side usually has lower priced homes than the West and North sides. I considered the Fountain Square area. I'm looking for SFH or duplexes (which seem to be rare), heavily leaning towards turn key or something with minor rehab (cosmetic work). I have a partial team in place for Indy: property manager, handyman, painter, roofing company in place, no contractor (yet). I'm also looking at Cincinnati.
Hi Becca,
How did you find your partial team for Indy? Have you had any luck finding any properties in Indy so far?
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