Investing advice in Ohio

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Investing advice in Ohio

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

I'm asking for input on good cities in Ohio for investing.  I love both single family homes as well as multi family.  But how do I start to consider what area to be looking in?  I have been looking at Akron and Toledo areas - but am I missing something obvious and are there other areas that might perform better?  Thank you in advance for sharing your knowledge with me.

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Mike Trzaska
Investor · Cleveland, OH · Member since 2014 · 55 posts · 48 votes
5y

I invest in the Cleveland Area and am also a local. My choice was mostly because it is my backyard. I know the macro population trends, but  like most cities there are micro markets within the City of Cleveland that people are flocking to. My quick run down for you is that the west side of the city will continue to see growth and investment, the closer you are to the lake the better (Detroit Shoreway, Ohio City, Edgewater) . Outside the city of Cleveland, Lakewood is a suburb that has seen a ton of appreciation in the last 5 years. A lot of areas on the East Side of the city are pretty rough so make sure to do you due diligence when you see a property for $20k. Is that an area you really want to be in? East side suburbs are nice areas, but there you will see high taxes to make sure to take that into account in your underwriting.

I would address the declining population concern, by asking yourself the question of how long am I going to hold this property for? Not sure if you are a new investor or have a portfolio already, but if you are new and it will take you another two years to have the capital to invest in Columbus I would say look at an Ohio market with a lower cost of entry to get into the game.

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  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y
    Originally posted by @Lesley Whitley:

    I'm asking for input on good cities in Ohio for investing.  I love both single family homes as well as multi family.  But how do I start to consider what area to be looking in?  I have been looking at Akron and Toledo areas - but am I missing something obvious and are there other areas that might perform better?  Thank you in advance for sharing your knowledge with me.

    Usually the discussion around Ohio is do you invest in Columbus which is the most expensive city, but also has the strongest economy and population growth.

    The other cities have more moderate economic situations but also way more “bang for the buck” in terms of pure cash flow and lower cost of entry.

    3Reply
  • Blake ParkBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 126 posts · 121 votes
    5y

    @Lesley Whitley

    I would check out Columbus, Ohio. It has seen a rapid growth in jobs and population.

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  • Thomas Corley
    Real Estate Agent · Phoenix, AZ · Member since 2018 · 127 posts · 62 votes
    5y

    @Lesley Whitley I invest in Columbus OH great growth and very stable economy. Definitely take a peek at Columbus

    1Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Lesley Whitley here is an idea how our cities are looking side-by-side...this data is from esri/ arc gis

    Quite honestly, you can do well in any of these locations...Columbus is the obvious stand out, but lots of folks invest in declining cities and do well...not sure if they will regret their decision in 20-years or not, but TBD.

    Your #1 factor of where you invest is how much capital you have access to...if that number is $200k (for example), logic would dictate that your $200k should be spent in strongest market possible...the flip side to the coin is you can likely buy more units in any city other than Columbus...where you gain the benefit of providing housing for a larger number of folks and have higher cash flow on a monthly basis.

    Best of luck on the journey.

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  • Isaac Wall
    Member since 2021 · 26 posts · 8 votes
    5y

    Hey all, also looking at Ohio. What are your thoughts on Ohio City? 

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Isaac Wall Ohio City is a trendy transitioning area in West Cleveland...on the lake...very walkable with breweries and restaurants...lots of redevelopment...there is a path of progress and still plenty of room for improvement...I'm sure some of the local experts will tune in...from what I could tell last time up that way, RE prices were starting to tick up quickly...

    There also appears to be a lot of opportunity with vacant or blighted properties and especially mid sized MF properties...

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  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y

    @Lesley Whitley both of those areas can cash flow well in the short to mid term due to the low entry point but both have weak economic and demographic trends. I can't get excited about markets that have declining populations, low household incomes, high poverty rate. It doesn't bode well for long term asset value and stability.

    0Reply
  • Mike Trzaska
    Investor · Cleveland, OH · Member since 2014 · 55 posts · 48 votes
    5y

    I invest in the Cleveland Area and am also a local. My choice was mostly because it is my backyard. I know the macro population trends, but  like most cities there are micro markets within the City of Cleveland that people are flocking to. My quick run down for you is that the west side of the city will continue to see growth and investment, the closer you are to the lake the better (Detroit Shoreway, Ohio City, Edgewater) . Outside the city of Cleveland, Lakewood is a suburb that has seen a ton of appreciation in the last 5 years. A lot of areas on the East Side of the city are pretty rough so make sure to do you due diligence when you see a property for $20k. Is that an area you really want to be in? East side suburbs are nice areas, but there you will see high taxes to make sure to take that into account in your underwriting.

    I would address the declining population concern, by asking yourself the question of how long am I going to hold this property for? Not sure if you are a new investor or have a portfolio already, but if you are new and it will take you another two years to have the capital to invest in Columbus I would say look at an Ohio market with a lower cost of entry to get into the game.

    3Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    It depends on what your specific goals are for investing in Ohio. There are plenty of markets to choose from when deciding. I am sure you will be able to find one. I would check out COlumbus as some of the others said. @Lesley Whitley

    [email protected]614-963-3340
    1Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    5y

    Hey There @Lesley Whitley Sounds like you are looking for secondary markets.  I personally invest in Akron, OH and it is my best performing portfolio (I also invest in Cleveland and Tampa).  At the end of the day, everyone will give you a different answer.  I will send you a message here shortly!

    3Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Lesley Whitley:

    I'm asking for input on good cities in Ohio for investing.  I love both single family homes as well as multi family.  But how do I start to consider what area to be looking in?  I have been looking at Akron and Toledo areas - but am I missing something obvious and are there other areas that might perform better?  Thank you in advance for sharing your knowledge with me.

     Well I won't speak to what is good and what isn't good in regards to market vs market. In all honestly you can do about the same in most all of these markets. They are all incredibly similar. It's about WHAT and HOW you buy IN a market, not which market you choose. 

    Myself, I am most familiar with the Cleveland market. If that's one you are interested in most all of your initial questions on that market will be answered in The Ultimate Guide to Grading Cleveland Neighborhoods.

    0Reply
  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Account Closedthank you all so much for posting your replies.  Columbus was not really on my radar at all (not sure why) so thank you for suggesting it.  I will definitely be checking it out.

    2Reply
  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Brandon Sturgill  Thank you for both of your replies.  That chart was really an eye opener for me!  Super helpful.  I will have to do my homework and probably take a trip there just to get a feel for the various areas.  Your suggestion of Ohio City is interesting.  I looked up properties around there yesterday and you are right.  But on the chart, it appears like Cleveland is on the decline.   But I will dig deeper to evaluate.   I really appreciate you taking the time to offer your valuable insights!

    1Reply
  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Mike D'Arrigo  Thank you for your candid and honest reply to my question.  You are absolutely right and I don't want to invest in markets as bleak as your described.  Thank you for pointing out the obvious quandry.  This is the difficulty of purchasing properties from far away when a prospective buyer really doesnt understand the areas.  Thank you again.

    0Reply
  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Mike Trzaska    Hi Mike,  thank you for taking the time to give such a detailed response to my question.  Lots of food for thought.  I have seen a lot of those "20K" properties and that is partially what prompted me to ask.  I don't know why I got initially interested in Akron and Toledo, but there are obviously other areas to consider.  I see you are an investor in Cleveland.  I really appreciate you telling me the areas that you view as promising within the Cleveland market.    That was very helpful.

    0Reply
  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Brandon Goldsmith    Thank you for your input and help.  I am definitely looking at Columbus after seeing all the comments.  I am not sure why that market wasn't on my radar.  I am looking for rental income rather than looking for houses to "flip" or for houses with less cash flow but great appreciation of property values in the long term.  I wish I had a magic wand!

    0Reply
  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Mike Mocek   How interesting to hear that Akron is your best performing portfolio!  That seems backwards from what others are saying.  Are you investing in single family, multi ??  And can you tell me some good areas where you have had success, maybe zip codes to investigate?  And when you say "best performing" are you referring to increased property values or increased cash flow from rents?  I appreciate your input very much.

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  • Lesley Whitley
    OP
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @James Wise - well let me say how impressed I am with your ultimate guides to neighborhoods.  I have spent hours already looking at properties in Cleveland based on your article.  Do you feel that those areas are still where they were when you wrote the article.  Also loved your articles on Birmingham and Kansas City ... both are parts of the country  I had never even thought of for investing purposes.  Thank you for taking the time to share your knowledge!

    2Reply
  • Frank Rodrigues
    Investor · Kansas City, MO · Member since 2021 · 110 posts · 65 votes
    5y

    @Lesley Whitley

    If Cashflow is your main focus most places in OH are great. I have had success in both Cleveland and Dayton. If you have questions about those two areas feel free to PM me. I hope this helps and best of luck! 

    0Reply
  • Javaughn Harkness
    Rental Property Investor · Akron, OH (Akron) · Member since 2020 · 37 posts · 11 votes
    5y

    @Mike Mocek I’m in Akron if you ever need anything

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Lesley Whitley:

    @James Wise - well let me say how impressed I am with your ultimate guides to neighborhoods.  I have spent hours already looking at properties in Cleveland based on your article.  Do you feel that those areas are still where they were when you wrote the article.  Also loved your articles on Birmingham and Kansas City ... both are parts of the country  I had never even thought of for investing purposes.  Thank you for taking the time to share your knowledge!

     It's a living document so I update it frequently though the years. So to answer your question, yes it's still as accurate today as it was when I wrote it. But I guess the real question is do you think it's accurate? You've spent hours looking at properties based on the guide. What is your impression of it's level of accuracy based on your due diligence?

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    Columbus, Delaware, Lancaster, Newark, Marysville are all good markets around Columbus.

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Lesley Whitley:

    @Brandon Goldsmith    Thank you for your input and help.  I am definitely looking at Columbus after seeing all the comments.  I am not sure why that market wasn't on my radar.  I am looking for rental income rather than looking for houses to "flip" or for houses with less cash flow but great appreciation of property values in the long term.  I wish I had a magic wand!

    If your looking for rental income then Columbus is a good place. The last couple places we have picked up have been at 2% rule and above, our best was at 3% rule! And the best thing is that they appreciate like crazy! 

    0Reply
  • Lan Nguyen
    Member since 2019 · 16 posts · 4 votes
    5y

    Im interested in the Cleveland and Colombus market too! Following along

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Lan Nguyen:

    Im interested in the Cleveland and Colombus market too! Following along

    0Reply
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