Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
13y
Pete Tam - a couple of thoughts for you:
1. My good friend Brandon Turner is an expert - I am just a dumb landlord :)
2. Do not rely on opinions of experts - you will loose. Do not ask Realtors either - they are not investors by and large. Go there and drive the streets; call the for rent numbers; talk to commercial lenders - ask them information relative to CAPs and vacancy factors - are you getting my drift. It's on you man
3. Nothing wring with Cinci. I've got friends and students making money in RE in Cinci. There is a range of neighborhoods and properties, just like anywhere. Caps range from a terrible 5% to 10% on a 4-plex with 2k gross. 4-plex in Cinci. in a transitional area is going to set you back $120,000 plus or minus - you can cash flow it all day long. In Hyde Park it's cost 300k and you can't touch it in terms of trying to cash flow.
Bottom line - you can flip and you can land lord in Cinci - but you need to know how an where. You need to study that market yourself before making any judgments. Hope this helps Pete
Involved In Real Estate · Rochester Hills, MI · Member since 2010 · 812 posts · 178 votes
13y
Best site is to talk with a realtor and get them to put you on a mailer. Message me if you're interested in me pointing you to some realtor contacts i have in that market.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
13y
Pete Tam Welcome to BP! I am in Lima, which is about 2 hours from Cinci. I lived in Cinci for years and know that market rather well - what would you like to know?
Ben,
Thanks for your quick response.
I talked with few people who lives in Cincinnati for last many year and they are saying that market in Cincinnati is not that good. You don't make money in Real Estate. Of course, these people are not in real estate so I don't listen to them but like to get an opinion from someone like you who has expert skills.
My long term plan is to move to Cincinnati if I see good value in Real Estate because it my plan to be full time investor.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
13y
Pete Tam - a couple of thoughts for you:
1. My good friend Brandon Turner is an expert - I am just a dumb landlord :)
2. Do not rely on opinions of experts - you will loose. Do not ask Realtors either - they are not investors by and large. Go there and drive the streets; call the for rent numbers; talk to commercial lenders - ask them information relative to CAPs and vacancy factors - are you getting my drift. It's on you man
3. Nothing wring with Cinci. I've got friends and students making money in RE in Cinci. There is a range of neighborhoods and properties, just like anywhere. Caps range from a terrible 5% to 10% on a 4-plex with 2k gross. 4-plex in Cinci. in a transitional area is going to set you back $120,000 plus or minus - you can cash flow it all day long. In Hyde Park it's cost 300k and you can't touch it in terms of trying to cash flow.
Bottom line - you can flip and you can land lord in Cinci - but you need to know how an where. You need to study that market yourself before making any judgments. Hope this helps Pete
Real Estate Investor · West Chester, OH · Member since 2013 · 6 posts · 2 votes
13y
Pete
I'm in cincinnati. Something rather unique in cincinnati is the large difference in areas. West side of town tends to be more blue color salt of the earth. Cheviot, Green Twp, White Oak. East and northern areas tend to be much more white color. West chester, Montgomery, Mason. The great thing about the area is job diversity. P&G, AK Steel, GE Aircraft Engines are based here. Aerospace and auto tier 2s in the area. I like the SFR on the east side for cash flow. Should have reasonable appreciation and I can always pull the rip cord and sell them in the future if I decide to get out of RE. I agree with Ben you can get a a good house 3 or 4 bdrm in a nice area for 100-125 all in and rent for 1200-1500 where I concentrate. We don't appreciate like the coasts. I think there are alot of nuances in the area so make sure you have a good team. Also we have 4 seasons here, snow in the winter and 90+ degree 90% humidity in the summer sometimes so you will need good HVAC units! One of mine went out over the holiday weekend and I was scrambling to get it fixed. Good Luck.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
13y
Pete Tam Knowing where to look and how is easy. Knowing what to look for is not so easy. This where the learning curve really is Pete. Message me on BP or hop over to my website - we'll talk :)
Cincinnati, OH · Member since 2013 · 292 posts · 81 votes
13y
Chad Meyer Don't forget our recent flood season, either. Metropolitan Sewer District just installed a pair of ejection pumps in a basement for me last month - I couldn't have asked for better timing.
Investor · Cincinnati, OH · Member since 2008 · 48 posts · 19 votes
13y
Cincinnati is a great market for buying and reselling! There are plenty of areas where properties can be purchased for $40-$50k that are worth $85-$120k after repair. Also, there is a ton of housing stock from the 1940's - 1970's, which is prime for flips.
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
13y
Cincinnati is also good for buy-and-hold. The cashflow is right for the price that you pay. However, do NOT expect good appreciation though (be satisfied with 3-5% appreciation).
Wendell De Guzman Gary Bailey
Thanks for your much needed support. I am mainly looking for buy and hold type of properties since I am just trying to get into investment field.
Investor · Cincinnati, OH · Member since 2008 · 48 posts · 19 votes
13y
The fact that we have 4 seasons and all the other great things about Cincy don't amount to a hill of beans if that doesn't line up with your strategy.
Consider linking up with a company that has a track record in Cincinnati for helping investors like yourself. Are you looking for single or multifamily properties? What type of cap rate are you looking for? Do you want houses that need work or are ready to go?
@Gary Bailey Sorry i was out of town so didnt check bp often.
So I'm looking for Single family properties. I am looking to pay the max $150K and as a first time investor, like to have property ready to go..
Also I would like to get opinion from experienced people here.. I am thinking of moving to Cincinnati so I can start as part-time investor and eventually become full-time but too confuse about their market.. Do you guys recommend any site where I can read a lot about Cincinnati market and help myself to understand..
CA is just so expensive for someone like me to invest here..
Cincinnati, OH · Member since 2013 · 28 posts · 2 votes
13y
As Chad Meyer alludes to above, Cincinnati is a fairly complex area. I am struggling through the same with you in trying to determine my farm area and i have lived here for over 12 years. Greater Cincinnati is a patchwork of neighborhoods and villages. There are some really rough areas and some real gems. Sometimes the gems are a bubble in the middle of a rough area.
Hopefully someone will come up with a good site suggestion for investors, but you may want to look at http://www.city-data.com/forum/cincinnati. There are good discussions on the different areas of Cincy there.
One thing you will have to do is get rid of your Cali price bias. Depending on your objectives $150K could go pretty far here.
@Brad S. Thanks for sharing your thoughts and the website. I visited Cincinnati few times but still unable to make decision whether to move or not... Its going to be big change compare to Cali but I am ready for it.. I like to hear from people like you who are actually living there and what's their thoughts are...
Cincinnati, OH · Member since 2013 · 28 posts · 2 votes
13y
I have lived in California from 8-12 grade and a couple of years after college. I do miss the climate and diversity of outdoor activities. However, at this stage in my life I wouldn't move back. The midwest is so much more affordable and in my opinion a great place to raise a family if you are choice-full in where you live. It's a little bit tougher socially if you are not in the family phase, but there are some hotbeds of younger professional (we're home to some major Fortune 500 companies) activity and downtown Cincy is becoming a great destination.
We live in a small city (about 3 square miles) within the heart of greater Cincinnati. Between our kid's school and sports as well as other activities, it seems like we know a good deal of our small city's residents. It's great to go down to the local art show or festival and constantly run into people you know. I think this type of experience is hard to find in CA, but should be easier to find in some of the midwestern cities like Cincy.
I'm an investor in the Cincinnati and Dayton Ohio markets. As everyone has said, the areas are diverse. Where you invest will be driven by your investing goals, (and tolerance for tenant dramas). For example, Price Hill in a controversial rental area. Some investors love it and do very well there. Other investors hate it, have lost their shirt there, others simply refuse to buy there. (low purchase cost, moderate rent level, high tenant drama).
There is one major thing I would suggest that hasn't been said. Invest in a plane ticket, and spend a few days in Cinti. Too many out of state investors buy here and don't really understand the neighborhood they are purchasing in, and the differences between different neighborhoods.
When you come out, make sure you have an investor friendly and knowledgeable agent, and take time to interview some property managers. I'd be happy to meet up with you for coffee when you are here.
Its a good advise. I've been to Cincy few times but as you said, I need to spend some times with Investors like you to understand the neighbourhood and investment scope. I will surely contact you when I visit Cincy which I am planning for.
Another thing I have heard a lot about Cincy property market is that there is not a great appraisal value but you get cash flow. I like you get your opinion on this if you don't mind.
The Cincinnati market is very diverse. A lot of people look at the low end market, and that's where that belief comes from. However, it really depends on which Cincinnati submarket you are investing in. You can buy low valued cashflow properties and get a good monthly income, but don't plan on much appreciation. In mid-valued areas, you can get a mix of income and some appreciation.
Your long-term strategy will dictate which market you should focus on.
Real Estate Investor · San Joaquin County, CA · Member since 2012 · 27 posts · 8 votes
13y
Absolutely agree that spending some time out in the area you're investing in, even if out of state, is crucial. We try to make it to Ohio every quarter, but at least every 6 months if we are really busy. Areas change from time to time, as well, and we can't really keep our fingers on the pulse unless we are interacting in person. At least that's our experience with our Ohio investments.
Another thing I have heard a lot about Cincy property market is that there is not a great appraisal value but you get cash flow. I like you get your opinion on this if you don't mind.
Pete, if you are at all familiar with this part of the country, you will know that this is "generally" true for every major metro area in the midwest and midsouth, from Rochester and Buffalo, across to Detroit suburbs and Milwaukee, down through OH and IN to KC, St Louis, Jackson, and Birmingham. All of these areas offer an abundance of "2%" properties in the working class areas (generally older housing stock of 1960s and earlier vintage, so make sure you carefully inspect), but also of course have nicer pockets of 100k properties that will rent for $1,200.
Just curious why the specific interest in Cinti, do you have other connections?
My extended family just moved there but they love their job and no interested in business. I like to live closer to my family even though they are far away kind of relative and Cincy is much cheaper compare to CA... Also good school for kids..
I am so hesitant whether to move or not but planning to visit Cincy again and I think i will stay there for couple of weeks... Hoping to find good investor with whom I can meet up couple of times to an idea about the market.