What’s the deal with Ohio?

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What’s the deal with Ohio?

Cameron McNulty
Minneapolis, MN · Member since 2020 · 61 posts · 56 votes

Hi guys, this one is for my OHIO investors/real estate people. What’s the deal with Ohio? I swear people are RAVING about Ohio, I can’t stop hearing Ohio and real estate in the same sentence LOL.

The only thing I really know about Ohio, is that not a lot happens in Ohio. This is probably an ignorant statement so TELL ME... Is there something i’m missing about the great state of OH?

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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
5y
Originally posted by @Joe S.:

I see so many people promoting Ohio I almost wonder if it’s being oversold. I kind of wondered about that myself because they have a higher number of realtors promoting their services than it seems any other state.

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  • Chris Faulkner
    Contractor · Covington, KY · Member since 2016 · 13 posts · 13 votes
    5y

    My family and I reside in Covington, KY. We only have investment property in northern KY. Cincinnati has been a great market for our construction company; we have been privileged to serve many investors. Because of our partnership-minded relationships with investors and desire to see each win and obtain their respective objectives, our clients often share their deal numbers and rehab budgets. Investors have experienced great ROI!

    4Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    5y
    Originally posted by @Cameron McNulty:

    @Hai Loc

    Have you lost $40k in delinquency?

     My overall number was $60k  I am able to recover about $40-45  

    1Reply
  • Ari Hadar
    Investor · Member since 2020 · 401 posts · 86 votes
    5y
    Originally posted by @Joe S.:

    I see so many people promoting Ohio I almost wonder if it’s being oversold. I kind of wondered about that myself because they have a higher number of realtors promoting their services than it seems any other state.

    Colombus realtors just put key alert of Cleveland and they promote themselves like that 

    3Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    5y

    @Brianne Leichliter

    I always thought about Cincinnati. My trailer parks are 60 miles up the 71 closer to Columbus.. Any reasons to buy in Bearcat town vs Buckeye?

    1Reply
  • Jennifer PetrilloPro Member
    Investor · Asbury, NJ · Member since 2015 · 226 posts · 205 votes
    5y

    We just bought two triplexes and a duplex in a small city (67K) outside of Cleveland. Decided not to buy in Cleveland because it was just too massive, too much income disparity and lots of unsalvageable areas. The town we are in is working class, older and homogeneous housing stock, half the population is renters. Mix of manufacturing, medical, service and white collar jobs. Lots of decent working people who just want a clean, safe place to live, happy to pay rent on time and the cost of entry for an investor was pretty low. We had five existing tenants with three vacancies when we bought the properties, got 50 inquiries for the three apts we had to fill, lots of people clamoring for decent housing out there.

    7Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Cameron McNulty Believe it or not, Ohio is the true center of the universe, lol. Everyone or someone they know were born in Ohio. It's freaky...

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  • Greg WeikBusiness Member
    Property Manager · Denver, CO · Member since 2020 · 264 posts · 327 votes
    5y

    The Cleveland Browns made the playoffs. Ohio is officially on the map. 

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  • Account Closed
    Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    5y

    I admit I do not know what this meme originally meant, but applicable: 

    2Reply
  • Jason Goretzki
    Fort Lauderdale, FL · Member since 2016 · 214 posts · 95 votes
    5y
    Originally posted by @Cameron McNulty:

    The only thing I really know about Ohio, is that not a lot happens in Ohio. 

    Oh I disagree! 

    Sports! Pro Football Hall of Fame is in Canton Ohio, there are teams for just about ever sport in all the major cities across the state.
    Music! The Rock & Roll Hall of Fame is in Cleveland.
    Entertainment! There's also Cedar Point in Sandusky, often rated the best amusement park with the worlds largest something or other every year.

    Best of luck on your search!  Ohio is a great state with lots to do. 

    3Reply
  • Brad Urie
    Member since 2020 · 1 post · 1 vote
    5y

    @Cameron McNulty

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    5y
    Originally posted by @Joe S.:

    I see so many people promoting Ohio I almost wonder if it’s being oversold. I kind of wondered about that myself because they have a higher number of realtors promoting their services than it seems any other state.

     2nd only to Memphis.

    2Reply
  • Peter Eberhardt
    Investor · San Diego, CA · Member since 2017 · 84 posts · 107 votes
    5y

    @Cameron McNulty when you ask your question, you should specifically state that only responses from non-Ohio based affiliates are allowed 😅 don’t show up to a Subaru car dealership and ask why Subarus are so great.

    9Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    5y
    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @James Wise:
    Originally posted by @Joe S.:

    I see so many people promoting Ohio I almost wonder if it’s being oversold. I kind of wondered about that myself because they have a higher number of realtors promoting their services than it seems any other state.

     2nd only to Memphis.

    Jim in 2009 to 2011  Ohio was one of the states that NONE of the professional bad debt buyers would buy notes in  LOL.. its late to the party but things always go in waves.

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Cameron McNulty

    Majority know Ohio for the affordability.

    It's always the best ROI on their money.

    Imagine California Investor buying a Fourplex with less than $200,000 in Columbus, Cleveland or Cincinnati.

    This is probably 2 years rental payment for some folks in Los Angeles.

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  • Kim Synow
    Flipper/Rehabber · Everett, wa 98201 · Member since 2021 · 12 posts · 11 votes
    5y
    Originally posted by @Brandon Sturgill:

    @Cameron McNulty Believe it or not, Ohio is the true center of the universe, lol. Everyone or someone they know were born in Ohio. It's freaky...

    I'll raise my hand too!  I'm currently in the Seattle area but grew up in Lakewood OH (directly west of Cleveland). I still search properties there daily b/c I kinda miss it there. However, nothing compares to the beauty of the Pacific NorthWest. Lake Erie though holds a special place in my heart that nothing will ever supplant. 

    2Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    5y

    @Cameron McNulty

    Good wrestling

    Not as good as PA though

    0Reply
  • Daniela Andreevska
    Real Estate Consultant · Member since 2020 · 44 posts · 71 votes
    5y

    Hi, @Cameron McNulty!

    That's a very good question indeed. Actually sometimes not much happening around is what makes a real estate market a good place to invest in. Stability is an important factor when choosing where to buy an investment property. While you can make a lot of money quickly in a market that suddenly became "hot", you can lose money equally quickly if the market goes down in a couple of months or years.

    Recently our team looked at nationwide data on the performance of long-term (traditional) rentals across the US housing market, and a few markets in Ohio emerged on top. The reason for this is the combined effect of affordable property prices and good rental rates. The affordable home values mean that investors can buy a few properties in Ohio rather than a more expensive single property elsewhere, which allows for instant diversification. Expanding and diversifying your real estate investment portfolio is key for pushing up return while lowering risk.

    In terms of specific cities within Ohio, I'd recommend looking at Akron, where the city-average cap rate reaches 4.4%. This might not sound like much, but this is just the average for all properties in the city, while individual rentals can achieve double-digit return. Other good markets include Youngstown (with an average cap rate of 4.3%), Dayton (4.1%), Toledo (3.7%), and Cleveland (3.3%). The median property price in all these locations does not exceed $202k, which makes them specifically good for beginners and others looking for affordable options.

    If you happen to be interested in small multifamily properties, Ohio is once again a good location to consider. Cincinnati, Cleveland, and Akron are specifically good for buying small multifamily (duplexes, triplexes, fourplexes, etc.) to rent out on a monthly basis.

    Keep us updated on whether you decide to invest yourself in Ohio!

    19Reply
  • Cameron McNulty
    OP
    Minneapolis, MN · Member since 2020 · 61 posts · 56 votes
    5y

    @Daniela Andreevska

    Very in depth. Thank you

    1Reply
  • Cameron McNulty
    OP
    Minneapolis, MN · Member since 2020 · 61 posts · 56 votes
    5y

    @Wale Lawal

    Interesting

    0Reply
  • Cameron McNulty
    OP
    Minneapolis, MN · Member since 2020 · 61 posts · 56 votes
    5y

    @Hai Loc

    Glad you will be getting money back.

    1Reply
  • Lee Yoder
    Rental Property Investor · Lebanon, OH · Member since 2016 · 224 posts · 228 votes
    5y

    @Daniela Andreevska, can you explain your "city-average cap rate?" Are you just saying the average cap rate in the city of Dayton is 4.1% or is there more to this number?

    0Reply
  • Jaquetta T Ragland
    Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    5y

    @Cameron McNulty good question. I see a lot of low priced property whether it’s single family homes or multi family properties listed in Ohio.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Jaquetta T Ragland:

    @Cameron McNulty good question. I see a lot of low priced property whether it’s single family homes or multi family properties listed in Ohio.

    Supply  Demand  Risk  are all factors that directly relate to the purchase price of the asset.. 

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  • Christopher Abele
    Investor · Toledo, OH · Member since 2020 · 88 posts · 101 votes
    5y

    One thing to consider is talking to boots-on-the-ground residents and investors. I've had conversations with out-of-state friends that say, "Ohio is SO cheap! Its not like the rest of the country where prices have gone through the roof!"

    The thing to remember is that price is relative, and its important to look at current prices relative to past prices (instead of prices you are used to seeing in your home market.) Our prices have gone up, in percentage terms, as much as many other parts of the country. 

    In my market (Toledo) zip codes don't always work for comps. In the same zip code you can have SFHs at $400k and SFHs where you'll want to wear a vest while collecting rent. I've recently seen lots of wholesalers that don't seem to know the market and are quoting rental rates that, while valid for some properties in the zip are DEFINITELY not appropriate for the neighborhood. In some cases it literally depends on what side of a street the property is on.

    4Reply
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