Cincinnati 2-4 Units - Hyde Park, Oakley, Mt. Lookout

9 Replies

I currently live in and manage a "House Hack", 4 unit apartment building in Covington, KY (across the Ohio River from Cincinnati). Cash flow is amazing, tenants are great, housing costs are very affordable with very solid properties <$150,000. Planning on expanding on this all in another Discussion, however, the following is a time sensitive issue:

I am currently looking to buy a place with my fiance. My fiance is verrrry picky with location which is a great thing because I tend to be a bit too open about location. We are looking to buy and live in a 2-4 unit as a "House Hack" but she INSISTS that we buy in Oakley, Hyde Park, Mt Lookout, or closely surrounding neighborhoods. These areas are extremely tough to find <$300,000 2-4 units that produce enough rental income to where it makes sense to buy. Especially in comparison with my current place in Covington.

I guess I am not really sure exactly what I am looking for from this post: Any advice?  Should I expand into looking for >4 units? Should I try and convince her to expand her mind outside these limits?  Just want to chat about best multi-family spots to invest in Tri-State area? All replies welcome! Thanks!

@Chris Grabosky

Some of those higher end neighborhoods are tough to cash flow in, especially considering you would be taking one of the units. My suggestion if you are looking for a better return, buy on the fringe of those neighborhoods, you can find a better deal. For example, there are parts of Norwood that are close to Oakley/Hyde Park near Rookwood that are much cheaper to buy, and are still in a decent area. I will send you my contact information if you would like to talk more. 

Joe

Hey Chris,

I would agree with Joe. I house-hack a duplex in Norwood that I bought in June of 2016. Prior to that, I was set on Mt Lookout, Oakley, Hyde Park. Like most younger buyers, I was priced out and I found that it was very difficult to cash flow.

That said, Norwood has some nice parts and some rough parts, very block by block. If you have any questions, let me know!

Good luck!

Tom

I am from the area, not investing yet (still saving for down payment and trying to convince husband).  I personally love Covington and hope to invest there.  You are correct that the Hyde Park area is cost prohibitive.  Perhaps show her your numbers. You can make printouts from the rental analysis on this site and show her the numbers from Hyde Park vs. Covington properties.  Compare Hyde Park to the Porsche of the area, everyone wants one but when you look at the cost of the Porsche suddenly the new audi/VW (etc...whatever) doesn't look so bad.  I don't know where you are  right now but perhaps look for some properties near the trendier areas of Covington like near Hotel Covington.  

Mount Washington should have now or in the future multi family buildings under $300000 and which should cash flow as well. 

Originally posted by @Stacey Voet :

I am from the area, not investing yet (still saving for down payment and trying to convince husband).  I personally love Covington and hope to invest there.  You are correct that the Hyde Park area is cost prohibitive.  Perhaps show her your numbers. You can make printouts from the rental analysis on this site and show her the numbers from Hyde Park vs. Covington properties.  Compare Hyde Park to the Porsche of the area, everyone wants one but when you look at the cost of the Porsche suddenly the new audi/VW (etc...whatever) doesn't look so bad.  I don't know where you are  right now but perhaps look for some properties near the trendier areas of Covington like near Hotel Covington.  

 Thanks Stacey, great advice.  I will be exploring the rental analysis more. I always rely on my own spreadsheets which are harder for others to understand and can be visually exhausting.

Originally posted by @Thomas Barrick :

Hey Chris,

I would agree with Joe. I house-hack a duplex in Norwood that I bought in June of 2016. Prior to that, I was set on Mt Lookout, Oakley, Hyde Park. Like most younger buyers, I was priced out and I found that it was very difficult to cash flow.

That said, Norwood has some nice parts and some rough parts, very block by block. If you have any questions, let me know!

Good luck!

Tom

Thank you Thomas! This is the route we are going to take.  It only makes sense especially since we are only living there temporarily.  The worst part about this situation is because we have banked on finding an Oakley/HP/ML spot in the prior months of this year, my fiance does not have a place to live in two weeks because she has to be out of her current apartment by November 1.  It is not an option to move in with me in Covington because of parental religious beliefs...Going to step up my game and analyze and view as many multis as I can over the next few weeks.

Originally posted by @Ham Merritt :

@Chris Grabosky would you be using conventional lending to finance the transaction?

Currently we analyze properties considering Conventional types and FHA types of loans. I say "types" because different lenders seem to present different ways of financing.

@Chris Grabosky Check out Mt. Washington.  I have two buildings there and house hack an apartment in my five unit building.  Takes me 7 minutes to be in Mt. Lookout Square, just right across the Beechmont Levy.  You can definitely find 4 unit buildings for well under $300k, in Mt. Washington you can buy 6-8 units and most likely still be under $300k.  

Join the Largest Real Estate Investing Community

Basic membership is free, forever.