Why is the Ohio market so popular right now?

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Why is the Ohio market so popular right now?

Luca Perinuzzi
Real Estate Agent · Long Island, NY · Member since 2023 · 24 posts · 20 votes

I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

Any advice based on experience would be great. Thanks!

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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
3y
Quote from @Luca Perinuzzi:

I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

Any advice based on experience would be great. Thanks!


 Cheap taxes, cheap properties, high cash flow, and high appreciation

[email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Jack Tulloch
    Lender · Austin, TX · Member since 2022 · 474 posts · 586 votes
    3y

    I am not an expert on the OH markets but some things I see in those cities are lower purchase prices and property taxes making cash flow more attainable. There are also a lot of older homes which can present an opportunity for value add if you are looking to rehab property.  

    3Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!


     Cheap taxes, cheap properties, high cash flow, and high appreciation

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    9Reply
  • Jad Boudiab
    Real Estate Broker · Cleveland, OH · Member since 2015 · 255 posts · 248 votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!


     Two factors.

    1 - the price point is affordable and the cash flow is better than many other markets.

    2 - there are more than 50 vendors on BP that all sell Ohio properties, and are very active in advertising it. You will get easy access to deals, vendors, etc. compared to other less-active markets. I'm even one of them, we broker and manage in multiple markets in Ohio.

    With that said, it's still important to do research and DD to ensure you're getting into good opportunities. There are lots of opportunities and good ROI, but also an older housing stock, rough neighborhood to avoid, and state or local level variances that you should be aware of when investing.

    5Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!


     Low barrier of entry, great cashflow, and ohio is very landlord friendly! Heres a list of notable large corp investments in ohio as well.

    6Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    The price points for the majority of the state make it easier for new investors to get started while cash flowing. This also helps people scale a little quicker. The laws are also landlord friendly compared to some of the coastal states. @Luca Perinuzzi

    [email protected]614-963-3340
    4Reply
  • Uri Gofman
    Member since 2018 · 150 posts · 200 votes
    3y

    In a nutshell, good rental income in realtion to the cost of property.  In Cleveland, you can consistently acquire property that will cash flow from day one!

    1Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!

    Because it isn't WA, OR, CA, CO, Il, NY or other places that despise investors and hate cops. I thought everybody already knew that. Lol

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

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!


     We have a lot of out-of-state investors putting money into Columbus for the strong appreciation, lower property prices, and cash-flow. 

    [email protected]614-802-5698
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    1Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    3y

    Climate change. 

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Luca Perinuzzi
    Columbus and Cleveland markets are great for investing in from out of state since they are landlord-friendly, and have a low barrier of entry and cash flow.

    [email protected]614-412-4565
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    1Reply
  • Yiwei Cheng
    Investor · Cincinnati, OH · Member since 2023 · 139 posts · 81 votes
    3y

    I'm in Cincinnati, OH and I am wondering the same thing!  I have gotten an influx of out of state investors looking to invest in Cincinnati.  Ohio must be on some top list article somewhere

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!

    Hi Luca, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9121 Reviews
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    2Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!

    Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 Fortune 500 companies, over +25% population change since 2000, and the 2016 smart city challenge award winner (https://www.columbus.gov/smartcity/). Furthermore, Intel is spending 20 Billion dollars to build two semiconductor plants, and many more great things presently and coming in the future. Needless to say, Columbus will remain a strong real estate market for the foreseeable future.
    1Reply
  • Jack KrusinskiBusiness Member
    Realtor · Cleveland/Akron OH · Member since 2019 · 147 posts · 93 votes
    3y

    Hi Lucas,

    I am a Real Estate Investor and agent here in Cleveland. Cleveland has become a very popular market for investors. Cleveland has become a hot spot for investors for a few main reasons. We are landlord friendly. No rent CAPS and our eviction process is pretty straightforward. Also, we have great rent-to-price ratios making Clevealnd a good cash flow market. Also, over the past three years, Cleveland has seen an average appreciation of 12.9%, and last year, our rent grew by 12.5%. Our economy has a strong healthcare presence with Cleveland Clinic, University Hospitals, and Metro Health all headquartered here. On top of all of that, in a Nation where housing is becoming very unaffordable, Cleveland is a very affordable city both in housing and standard cost of living. In summary, Cleveland has strong cash flow, strong appreciation, is landlord friendly has a strong economy, and is very affordable. I can't speak for other markets in Ohio but these are the reasons why I invest in Cleveland and why many of my clients do as well. 

    [email protected]216-789-6736
    0Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    3y
    Quote from @Account Closed:
    Aaaah, so the US is made up of 7 states. Got it.
    1Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!

    Lots of good advice above. I'll add one more: because Ohio has not been a darling to most OOS investors until recently. Other places have ranked higher. An example is Indianapolis. It was a hotspot from around 2018 until a year or so ago. Lots of money came from all over the country. It's still a nice place to invest, however there aren't home runs to be found (a local pro made that statement in late 2021). Cincy, Columbus, Toledo, Akron, etc had investors, but not the nationwide recognition they've now been getting as money flows in the quest for the best returns. 

    Tchaka
    1Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Tchaka Owen:
    Quote from @Account Closed:
    Aaaah, so the US is made up of 7 states. Got it.
    That's a very odd statement. I'm sure you meant to say something more creative but didn't. I'd suggest you leave the jokes to someone who can pull them off. ;-)

    The question asked was: "I'd be curious to know what is making these markets stand out to investors."

    It has nothing to do with leaving out American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. I'm not sure why you are dissing them.






    1Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    3y
    Quote from @Account Closed:

    It has nothing to do with leaving out American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. I'm not sure why you are dissing them.
    Look who pulled out an atlas. Way to go!
    1Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Tchaka Owen:
    Quote from @Account Closed:

    It has nothing to do with leaving out American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. I'm not sure why you are dissing them.
    Look who pulled out an atlas. Way to go!
    Now, that one made me laugh. ;-)
    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!


     Yeah too popular. Lot harder to find deals now days.

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!


     >I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors.

    According to who?   Just because many BP users extol the Ohio markets does not mean that it is popular with investors.  It is not.  The state of Ohio ranks near last in investor owned residential RE.  California which gets bashed by many of these Ohio RE advocates has the highest percentage of investor owned residential RE. source Core Logic. 

    https://www.corelogic.com/intelligence/total-investor-home-p...

    Similar scenario happens with cash flow.  Many users on this site believe CA has poor cash flow, but for long holds it historically has outstanding cash flow (if value is not extracted). 

    Does this mean I do not like Ohio markets?  Not in particular.  I think they are great for people living in Ohio.  

    Good luck

    2Reply
  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    3y
    Quote from @Tchaka Owen:
    Quote from @Luca Perinuzzi:

    I have been seeing that cities like Cleveland and Columbus (Ohio) are becoming increasingly more popular for investors. I'd be curious to know what is making these markets stand out to investors.

    Any advice based on experience would be great. Thanks!

    Lots of good advice above. I'll add one more: because Ohio has not been a darling to most OOS investors until recently. Other places have ranked higher. An example is Indianapolis. It was a hotspot from around 2018 until a year or so ago. Lots of money came from all over the country. It's still a nice place to invest, however there aren't home runs to be found (a local pro made that statement in late 2021). Cincy, Columbus, Toledo, Akron, etc had investors, but not the nationwide recognition they've now been getting as money flows in the quest for the best returns. 

    Tchaka

     agreed!

    1Reply
  • Shane Faherty
    Lender · Cincinnati OH · Member since 2023 · 7 posts · 5 votes
    3y

    As a lender in Cincinnati my team has seen a significant increase in out of town investors. Taxes in Cincinnati and Northern Kentucky are great areas to see cash flow. Theres some great fortune 500 companies in Cincinnati (P&G and Kroger for starters). I also have worked with realtors in Columbus and with the Intel Investment in New Albany Ohio with what will become the largest chip manufacturer in the world there is a lot of price appreciation that will be coming to that area. If anyone is interested I'd love to connect them with realtors that I work with in Cincinnati and Columbus and talk about different investment strategies that have worked with my investors.  

    1Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    @Luca Perinuzzi

    I think what really stands out is that Cincinnati wasn't mentioned in the post. It is a little more hidden and has deals to be done here!

    [email protected]859-443-4952
    Sam McCormack Realtor
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    1Reply
  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    @Luca Perinuzzi Ohio has been recently getting popular with retail investors and becoming trendy mostly because of the intel project and all that...plus all the guys from Reafco are on here telling everyone about it! (I'm 10000% joking).

    But Ohio has been a major target for investment from institutional money for decades.  Honda saw the potential in central OH when they opened the Marrysville factory and the R&D center. 

    Huge companies and developers have seen the logistical and human advantages of the area for decades...I feel like its just now trickling down to the retail investors.  

    [email protected]614-362-2231
    2Reply
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