Investor · Austin, TX · Member since 2015 · 13 posts · 12 votes
Hi everyone. I'm Jen. My husband and I live in Austin, own a house and a duplex here, and want to start investing elsewhere. I'm originally from Dayton, OH and go there a couple of times a year, so we're playing with the idea of investing there. I'd love advice on what parts of town folks think are good to investment in, and how to run numbers to determine ROI. We've got a down payment and we're ready to buy!
We're not rich people. My husband is a school counselor and I am a fundraising consultant for nonprofits. But we live a simple lifestyle (no kids) so our expenses are low. We would like to stop working with plenty of time to enjoy retirement.
I have a lot to learn! I'm super happy to find this site.
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
@Jen Lucas welcome to the site. I don't work in Dayton but i'm in Cleveland were prices are similar. You should be able to achieve a ROI of 10% or more.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need. You can start interacting via phone.
To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what sides of the city they like/dislike and why. Ask what they see them selling for and what expenses are by category. Ask for market occupancy and rents. Ask if they know anything coming up for sale.
You can also search narpm.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Lender · Dayton, OH · Member since 2008 · 1k+ posts · 705 votes
11y
Hi welcome to BP!
I moved to Dayton 10 years ago and liked it so much, I stayed. There are great neighborhoods to invest in to get good cashflow. Your tolerance for drama vs anticipated ROI will determine the areas that are most attractive for you to invest in.
My low tolerance for drama and desire for good current cash flow leads me to the edges of Dayton. Neighborhoods like Belmont and North Riverside are good for me. I also like some of the inexpensive suburbs.
A 10%-12% ROI is very achievable, even when you are paying all cash. As a quick rule of thumb, assume 1/2 of your scheduled rent will go to vacancy, management, repairs and reserves, taxes and insurance, and other expenses. That does not include any Principle or Interest on a mortgage if you have one. Of course, every house, month, and year will be different, but that gives you a good starting point, and over time will be close.