Renting Single Family in Cincinnati - Anderson Township

12 Replies

Hello local Cincy investors.  I've been a local real estate investor since 2007, but my rental experience has been centered in Clifton.  

My question is whether anyone has had any experience, good or bad, renting single family homes in Anderson Township.  I'm trying to determine whether it makes sense to rent out my current 2000SF 4bed/2.5bath single family home in Anderson township.  It's a good-sized house with a nice big back yard.  Very typical suburban home - great for a family.

Situation: I have the potential to take a job in Los Angeles at substantially higher pay than what I'm currently earning, but I wish to continue investing in the Cincinnati community since I know it so well, already have properties here, and the cash flow benefits are in line with my expectations.

Any thoughts on renting single family in this area would be very helpful.  Thanks ahead of time.

I do not have any experience with renting single families in Anderson, but I'm from the area and I think it would be a great place to rent a SFH. The school district is great, beechmont avenue is awesome, and the location is very convenient for getting to Cincy or the surrounding area. I've seen a decent amount of homes for sale in that area, so potentially you could make it a lease option. I've also seen plenty of houses for rent, so I would say see what houses are renting for and go for it!

@Joseph Jackson

I hope that "substantially higher pay" means SUBSTANTIALLY HIGHER PAY.

I am in the process of relocating to Cincinnati (just bought a house in Amberley Village) after 28 years in Southern California (I was a policeman in Long Beach, CA). 

Property Taxes: Your tax rate will probably be about 1% of assessed value so expect to pay a little more than $8,000 per year on an $800,000 house. Your $800,000 Los Angeles house will be 1/3 smaller than your Anderson house and remember that you will have no basement. (If you have kids, Make sure that you budget for private schools unless you live in a beach city. Do not buy or rent anything until you have the school situation locked down.)

Car insurance: We paid exactly $2,000 per year for car insurance in SoCal. We are paying $835 in Ohio, same cars, same drivers, same coverages. 

Car Registration: A $40k vehicle will run you about $360 per year to register. An $80k car is going to run you about $620 per year. It goes down a little bit each year, but doesn't significantly drop until the car is about five years old or so. 

*** When I went to the OHio BMV, my wife and I were in and out in less than fifteen minutes. Expect all locations of the California DMV to be as crowded and as foul smelling as the Southwest AirlinesTerminal at Los Angeles International Airport. Oh, you've never had a flight originate in the Southwest Terminal at LAX???  : )    And expect wait times to be measured in hours, not minutes. Unless you have an "appointment".   : )   And good luck getting that appointment now that California is issuing drivers licenses to illegal immigrants. 

2014 California State Income Tax:  Married, 

$67,751+9.30%

The traffic congestion must be lived to be fully understood. Coming here on vacation is not enough. The traffic situation literally dictates where you go and how long you stay. 

Kroger grocery prices are shockingly lower than Ralphs Grocery prices even though Kroger owns Ralphs. 

Staples Center Concert prices will be double or triple Riverbend concert prices. My wife and I paid several hundred dollars to see Depeche Mode last year (at Staples Center) and our seats were nothing to brag about. I can't speak of Dodgers tickets prices because I have friends with season tickets, but I suspect that they are not the steal that Reds tickets are. Pro Football?  Uh... 

College Football? USC plays in a toilet and UCLA is all of the way up in Pasadena. But at least it's safe and UCLA fans are very nice people. 

and on and on and on...

Please do your due diligence  before leaving Cincinnati for Los Angeles unless you can "out earn" any unpleasantness that an unplanned relocation FROM Los Angeles might entail. 

Good Luck

DL

Originally posted by @Joseph Jackson :

Hello local Cincy investors.  I've been a local real estate investor since 2007, but my rental experience has been centered in Clifton.  

My question is whether anyone has had any experience, good or bad, renting single family homes in Anderson Township.  I'm trying to determine whether it makes sense to rent out my current 2000SF 4bed/2.5bath single family home in Anderson township.  It's a good-sized house with a nice big back yard.  Very typical suburban home - great for a family.

Situation: I have the potential to take a job in Los Angeles at substantially higher pay than what I'm currently earning, but I wish to continue investing in the Cincinnati community since I know it so well, already have properties here, and the cash flow benefits are in line with my expectations.

Any thoughts on renting single family in this area would be very helpful.  Thanks ahead of time.

As far as, if you should rent out your home, I dont think any body will be able to give you a real answer without seeing all the numbers. How much your house is worth, how much you pay monthly, what it can be rented for, etc...

@Mike G. I can run the numbers myself and make it work out, but I'd be running them on assumptions of what the rent would be, on assumptions of what the vacancy would be in the area, on assumptions of the types of tenants that rent the area.  Since I've never rented single family homes at all, let alone single family in this particular neighborhood, then these assumptions we'd make together would frankly just be simple uninformed guesses.  To turn them from guesses into more real and usable figures, I'd ideally need to get some firsthand experience from people who have rented here (in business, we'd call that doing your due diligence or completing market research), to get an idea of what they've seen as far as demand goes, which will help me narrow in what my expected vacancy rate would be, my approximate expected rental rate, and what others' experiences with tenants have been in the area to determine potential maintenance issues, etc.  Thanks for checking out my question and posting!

@Tommy DeSalvo Thanks for the thoughts, and nice to connect with you.  Looking forward to networking more.

NA Martin Please tell me how you really feel.  : )  Sounds like you are quite tired of the big city life, my friend.  Glad to hear that you are finding a place in Amberley - very nice, peaceful area.  

Are you originally from Cincinnati?  I saw you were a Bearcats fan?  That's my alma mater.  What is bringing you back to Cincinnati?

So I work in finance and my potential total pay package could just about double from what I'm getting now, and my wife's could go up maybe 30-40% as well.  These aren't lateral career moves we're taking, and we're not moving just to move, like some do.  Frankly, these same jobs we're finding in LA are just not available in Cincinnati, which is part of the reason for the move.  Cincinnati is much smaller than Los Angeles, and while you can make a great career in this town, it's a little bit more difficult to advance quite the way we're looking for, as compared with some of the other larger cities like New York, Chicago, San Francisco, LA.  Los Angeles, being an alpha world city, has an enormous economy, and there are a lot of job opportunities available in my wife and I's specific fields.  

Absolutely it's more expensive. I'm projecting we'll be paying about $30k extra per year between the two of us, as compared with where we are now, and we'll be living in an apartment, quite different from the larger SFH we live in now. But the pay difference will be higher than this $30k increase, so we'll be earning well more than we are now, even after the cost of living goes up.

We're young, with no kids yet. You lived in Long Beach for 28 years. I've lived on this earth for 28 years. I can handle a few years of living in an apartment and renting.  I'm not going to buy an $800k house, and we don't buy $40k or $80k cars (think Rich Dad's Assets vs Liabilities).  All the extra money we're going to be making is funneling straight into our investment portfolio.  In 3 years, we'll assess where we are financially and make the decision of buying a new place and where that will be.  It could very well be outside of LA, as we'll have the new job experience we wanted, we'll have lived the beach life for awhile, and maybe we'll be on to something new.  It's hard telling - too far away.

I've lived in LA before, and have been back many times. I'm pretty familiar with it, and how to navigate it.  We'll be living in Marina Del Rey or very nearby, most likely, with our jobs very close so as to avoid as much traffic as we can.  The neighborhood will give us access to the shops and restaurants we want, the beach, and it's a short drive up the PCH to the Santa Monica Mountains if we want out of the city.  Also, it's not quite like living inland, and has a much more laid-back feel, that we both really enjoy.  It's a beach city.

Aside from just the job and financial considerations, LA and Cincy are totally different.  In Cincinnati, I hope you're OK with 4-5 months/year of cold, gray skies, and dead outdoor plant life.  Like you said about LA, visiting Cincy in the winter is OK and dealing with it in small doses is fine.  But, as the days get shorter, the nights longer, the weather cold and gray with brown all around from the dormant plant life, the environment can frankly get fairly depressing.  Ask anyone who lives in the cold climates.  There is a real psychological thing known as seasonal depression.  In January in LA you could go surfing.  In January in Cincinnati you will be busy shoveling your driveway and staying indoors as much as possible, and as most of the city does.  

In Cincinnati, there is no ocean, and no mountains.  We're in the middle.  : )  If you want to be by a great expanse of water or mountain range, you're going to be taking a day's drive.  

In LA, there are an enormous amount of restaurants to try, of neighborhoods to visit, entertainment options for young and old, great national parks to drive to, other very cool and different cities that can be visited very easily (San Diego, Vegas, San Francisco), and if music is important to you, LA gets all the major tours. Cincinnati misses out on some of them, due to its smaller size, which means you'll sometimes then have to drive to another city if you want to see your favorite act. I don't watch college football, and if I do it's the Bearcats, and I can still do that on TV (I think I've only been to one game ever). LA has two MLB teams with the Dodgers and Angels, two NBA teams with the Lakers and the Clippers (Cincinnati has no NBA - you'll drive to Indy or Cleveland which is 3+ hours), an NHL team with the Kings (no NHL in Cincy), and an MLS team with the Galaxy (no MLS in Cincy). The only thing missing in LA is the NFL, which is unfortunate, but there is an awful lot of chatter about making it happen: http://www.nfl.com/news/story/0ap3000000481409/article/goodell-were-not-focused-on-an-la-team-for-2016. Maybe moving the Raiders, Rams, or Chargers in. It's a focus.

Anyway, that's enough rambling.  Thanks for your post, and I hope you liked my counter.  Point is, moving to any city is a very personal and subjective opinion, with many things to consider other than simply which one is more expensive than the other (If a city, any city, is more expensive than others, it's due to demand market forces pushing up cost because so many people want to live there.  That in itself should be somewhat eye opening).  It's difficult for a total stranger to know what's important to another in their decision to move.  Cincinnati is a great city, and I'll continue to have roots and investments there, and it'd be the first place I'd move back to if LA doesn't work out.  I wish you the best of luck in your new neighborhood!  Cheers.

@Joseph Jackson

: )

Okay, as long as you know... 

I grew up in Cincinnati and am Bearcat Alumnus. I moved out here right out of college but my family, my grade school/high school friends and college buddies are still in Cincinnati. 

The reason that I used the "$800,000 house" example is that my CA house is listed for $800,000. It's very expensive out here. Luckily, I was able to pay a little bit less for our Amberley Village house.  But I see that you plan on living in an apartment and that kids are not in your immediate future, so nevermind.  : )

If career progression and warm weather are integral to your life plan, then by all means, go where there is opportunity. 

But I have an 11 year old. It's my responsibility as a father to get her out of this environment. (She was accepted into the Walnut Hills High School 7-12th grade honors program and that's why we bought in Amberley. Choice #2 was Indian Hill and Choice #3 was Sycamore)

DL

p.s.  If you feel that $40k to $80k is a lot of money for a car, you have not adequately prepared yourself for life in Los Angeles.  : )   My gardener drives a $40k pickup truck. (probably even more expensive than that!)  

@Joseph Jackson I lived in Santa Monica for 5 years, drove a 14 year old, $2500 car, and wooed the woman (now, wife) of my dreams with it. Or, maybe wooed her despite it, but, still - $40k or $80k car not required. ;)

@Justin R. Love it!!!  So you think I'll be OK if I go without buying the Mercedes, then? ????

@Joseph Jackson Naw, you'll be fine.  Your biggest car problem may be having a big car ... I certainly wouldn't want to deal with underground parking and street parking with an oversized car.

Just one request for you: In my time on the west side (Santa Monica and Mar Vista), I met too many people who came to LA from somewhere else so they could get something for themselves - get rich, get famous, get a guy, get a tan.  There's a "take" mentality over a "give" mentality ... and comparatively few people establishing community, building permanent relationships, and investing in the people around them.  Go for it, but please find a way to leave it at lest a little bit better than you found it.  :)

My wife and I moved to Socal from Columbus OH 3 years ago. Best decision we ever made. We own a few rental properties in Cinci, and are looking into picking up some more this year. If you have a good PM that you can trust, and the numbers work, then you should do it. It's more expensive out here, but you get what you pay for. Beach, mountains, good night life, healthy people, flights to anywhere in the world. If you can live out here and own good cash flowing property in the Mid West then you'll be doing ok.

P.S. For the first two years we drove a 2003 Solara and 2001 Camry, and everything worked out just fine. Recently upgraded to a 2009 Prius so that we could keep up with the Jones ;)

@Justin R. Giving back and building real relationships is something my wife and I intend to do.  I read your comment to her and she really appreciated you saying that.  Thanks, that's great advice.

@Joshua Myers I'm glad things are going great for you and your wife in SoCal.  We're looking forward to it.  It's a big change and there are obviously hesitations, but I think it'll be a great overall move for us at this point in our life.  Thanks for sharing your experiences, and since we're both Ohio natives investing in real estate in Cincy and relocated to SoCal, definitely reach out anytime if you'd like to connect further.

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