First Time Rental in Cincinnati
Hello,
I was looking to invest in Cincinnati in the first time. I saw a property in North Fairmount that looks pretty attractive from a ROI and rent to value ratio but has very high crime rates (which explains the attractive numbers). Just wanted some confirmation who understands the Cincinnati market well that North Fairmount is a place I should avoid investing in or is it worth taking a risk on? I understand Clifton, Hyde Park, Northside, Over-the-Rhine, and Pleasant Ridge are more of the desirable neighborhoods for rental properties which also explains the more expensive properties.
TY in Advance!
Joshua
Hi Joshua, I live in the greater Cincinnati area. I have eard very bad things about fairmont, as well as price hill, and avondale. I work for a real estate agent named Zac Elliot. He is very knowledgeable about CIncy, much more than me. @Zachary Elliott .
I would be hesitant on getting your 1st property in North Fairmount. Even though the numbers most likely look really good. I would look for a better neighborhood for your first property. That way you can build a team and get more experience with investing in the Cincinnati area. The cash flow numbers will not be as good but you will most likely have less headache and trouble on resale. I would also talk to a property manager in the area to get their thoughts on North Fairmount. Let me know if you need any contacts!
I'd stay away from north Fairmount especially for your first property. id say a place like norwood, pleasant ridge, silverton would be more desirable. You could maybe find a place that's move in ready, generates a good ROI and attracts tenants in one of those locations.
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I will echo what others have already mentioned. I work with a ton of out of state clients who buy in Cincinnati, it is difficult to take on the tougher neighborhoods unless you have a strong manager and a great relationship with them. If you find that team member it may not be as risky, otherwise it may be a better option to look in a more manageable area especially for your first deal.
Echoing what all the other have said here as well. Not the best area for property number 1. The east side of Cincinnati is much better. Areas on the west side that I find attractive are white oak and Bridgetown.
Hello Josh and welcome to the Cincinnati market as you are searching for a deal! I am a Sales Rep for True Home Ohio Property Management and we currently manage about 400 units of rentals across the Cincinnati market for our ~150 clients that own the rental properties (most of them being out-of-state investors). We have experience managing in just about every zip code in Cincinnati and also have experience in North Fairmount. This is in our opinion, for the most part, a Class F neighborhood. What you will run on your proforma spreadsheet calculation on what the ROI/cash flow will be, is likely going to never align with reality in an area like North Fairmount. I would strongly advise increasing your budget for your first rental and getting into a Class A, B, or C+ neighborhood. Based on our experience, if you were to buy in a Class F neighborhood like this, it is only going to completely sour your experience as an out-of-state investor, completely stress you out, likely be a negative ROI, and overall just be a poor move. There are exceptions of course to this advice, but that is only reserved for highly, HIGHLY, experienced investors who know exactly what they are getting into when they pursue Class F area rental properties.