What’s the deal with Ohio?

Innovative Strategies
5yFollow

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?

20Reply
433 views

Most Popular Reply

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.

[email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
WebsiteView Page
26Reply
See this reply in the discussion

164 Replies

Jump to latestLatest
  • Tristam GriffithPro Member
    Real Estate Broker · Columbus, OH · Member since 2016 · 86 posts · 45 votes
    5y

    Here's an example property:

    https://www.biggerpockets.com/...

    3Reply
  • Lee Yoder
    Rental Property Investor · Lebanon, OH · Member since 2016 · 220 posts · 228 votes
    5y

    Great information @Tristam Griffith! Thanks for sharing!

    2Reply
  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    Columbus aside, investing in Ohio reminds me of those investors who kept trading K-Mart shares after it went into bankruptcy.  The run-up in price from investors trading shares back and forth among themselves eventually popped.  There's a simple rule that applies: when the only buyers in a market are "investors," watch out for the moment when the music stops because you may in fact be the greater fool.  I say "Columbus aside," because it appears there is real growth there to justify meaningful investment.  

    The Midwest once contained an enormous portion of the U.S. population when ours was principally an industrial economy.  Those days are gone and the area's population cannot support the infrastructure that was developed from the 1920's-1980's.  If your goals as an investor is walking away with a bag of quarters, focus on "cheap" (i.e. stagnant and/or shrinking) housing markets.  

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Darius Ogloza:

    Columbus aside, investing in Ohio reminds me of those investors who kept trading K-Mart shares after it went into bankruptcy.  The run-up in price from investors trading shares back and forth among themselves eventually popped.  There's a simple rule that applies: when the only buyers in a market are "investors," watch out for the moment when the music stops because you may in fact be the greater fool.  I say "Columbus aside," because it appears there is real growth there to justify meaningful investment.  

    The Midwest once contained an enormous portion of the U.S. population when ours was principally an industrial economy.  Those days are gone and the area's population cannot support the infrastructure that was developed from the 1920's-1980's.  If your goals as an investor is walking away with a bag of quarters, focus on "cheap" (i.e. stagnant and/or shrinking) housing markets.  

     You're missing a big key factor, Industries and companies are moving to Columbus because it offers their employees affordable housing, and an enjoyable midwestern life, not to mention the best college football team in the nation.

    2Reply
  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    @Steven Foster Wilson I acknowledge, as per above, that Columbus appears to be growing and thus presents a special case.

    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Darius Ogloza:

    @Steven Foster Wilson I acknowledge, as per above, that Columbus appears to be growing and thus presents a special case.

     Agreed Columbus seems to be something special.

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Tristam Griffith:

    Hi Cameron! I'm Tristam, and I'm a real estate broker in Ohio. I own a sales brokerage(small) and PM company in Columbus, Oh.

    The deal with Ohio is tons of jobs, which leads to tons of renters and buyers. Just in Columbus, we have over a dozen colleges and hospitals. We also have Chase, Nationwide, and plenty of other big companies here. For the non-professionals employees, we are the startup city for food franchises and have a warehouse district on the south end that houses Target, WalMart, Amazon, Boars head meats, etc. Add in access to a well-designed airport that has nonstop flights to most of the country. The cost of living is excellent. So, with lots of well-paying jobs, lots of good schools, affordable housing, and easy access to the rest of the country via plane, it's a natural place for employers to move their headquarters, or add hubs here. That means lots of renters and buyers.

    The demand for rentals is generally higher than supply.

    And the returns are good. You can expect $100-$150 a door profit on multifamily units and $150-$250 a door on single family houses. That's after ALL expenses. The city and real estate appreciation is generally steady at 4% plus per year.

     Yeah renting up units is like shooting fish in a barrel in Columbus, Ohio. People are desperate for solid rental units.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Darius Ogloza:

    @Steven Foster Wilson I acknowledge, as per above, that Columbus appears to be growing and thus presents a special case.

     Yeah, I agree. That is why I started investing in Columbus, Ohio 3 years ago. It just did not make sense investing anywhere else.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    3Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Remington Lyman:
    Originally posted by @Tristam Griffith:

    Hi Cameron! I'm Tristam, and I'm a real estate broker in Ohio. I own a sales brokerage(small) and PM company in Columbus, Oh.

    The deal with Ohio is tons of jobs, which leads to tons of renters and buyers. Just in Columbus, we have over a dozen colleges and hospitals. We also have Chase, Nationwide, and plenty of other big companies here. For the non-professionals employees, we are the startup city for food franchises and have a warehouse district on the south end that houses Target, WalMart, Amazon, Boars head meats, etc. Add in access to a well-designed airport that has nonstop flights to most of the country. The cost of living is excellent. So, with lots of well-paying jobs, lots of good schools, affordable housing, and easy access to the rest of the country via plane, it's a natural place for employers to move their headquarters, or add hubs here. That means lots of renters and buyers.

    The demand for rentals is generally higher than supply.

    And the returns are good. You can expect $100-$150 a door profit on multifamily units and $150-$250 a door on single family houses. That's after ALL expenses. The city and real estate appreciation is generally steady at 4% plus per year.

     Yeah renting up units is like shooting fish in a barrel in Columbus, Ohio. People are desperate for solid rental units.

    I agree, in the midst of the pandemic I started renting one of my units at top dollar, the first person came in with high credit score and six figure income, they took the unit. There is just a big pool of quality tenants here in Columbus! 

    0Reply
  • Reece Iovine
    Realtor · Columbus, OH · Member since 2016 · 170 posts · 227 votes
    5y

    I rented up a 3 bedroom rental for market rent in 6 days 2 weeks before christmas. Solid rentals at fair market rent go quick! Strong demand for good housing.

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Nick Shri:

    Amazing discussion, wealth of knowledge for someone considering OH as potential investment.

    Who are good boots-on-ground in Cleveland (suburbs), Columbus(suburbs), Cincinnati (suburbs), Youngstown, Toledo markets? I had love to connect with you.

    Talk to any of us at Reafco if you want information on Columbus. We also have referrals in the surrounding markets. 

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Hai Loc:
    Originally posted by @Mike Mocek:

    @Hai Loc this is awesome! Glad you have found success!! Where do you invest in?

     I just own a few mobile home parks in Central OH  all my other properties are scattered

     Where are your mobile home parks located? Have you seen success during this pandemic? Are you actively looking for more mobile parks in Columbus? Cleveland? Cincinnati? or are they on the outskirts?

    0Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    5y
    Originally posted by @Steven Foster Wilson:
    Originally posted by @Hai Loc:
    Originally posted by @Mike Mocek:

    @Hai Loc this is awesome! Glad you have found success!! Where do you invest in?

     I just own a few mobile home parks in Central OH  all my other properties are scattered

     Where are your mobile home parks located? Have you seen success during this pandemic? Are you actively looking for more mobile parks in Columbus? Cleveland? Cincinnati? or are they on the outskirts?

     Pickaway County,  if your referring to success in rent collecting  its definitely worse, if your talking about demand the cap rates have compressed, I am not looking at the moment

    1Reply
  • Kyle Parks
    Rental Property Investor · Lakewood, OH · Member since 2016 · 119 posts · 156 votes
    5y

    @James Wise

    https://m.youtube.com/watch?v=cd4-UnU8lWY

    0Reply
  • Robert HowellPro Member
    NJ · Member since 2020 · 12 posts · 6 votes
    5y

    @Brianne Leichliter

    Hi I see you were an out of state investor before moving to Ohio. Did you find someone to work worth there?

    I do hear it’s a happening place as far as RE is concerned.

    Thanks

    0Reply
  • Sitaram Koppaka
    Columbus, OH · Member since 2017 · 48 posts · 43 votes
    5y

    Very interesting discussion. I am an investor in Columbus for last few years and I own quite a few multi family units. The market is extremely hot here. I am trying hard to invest but properties are very high priced. I think market is just arbitrarily inflated. I saw 6 properties last week and planned to make offer on 2 for sure. They were gone the next morning. So, be careful on what you buy. I read a lot of real estate stuff, so I wouldn't go into why all this happening but do due diligence before invest.

    Typically I have stayed away from Cleveland and Toledo but I am actively looking at Dayton and Cincinnati. 

    @Brianne Leichliter I will take your offer to get connected to know more about Cin, I can share my inputs about CMH. This is interesting and valuable discussion about OH for sure.

    0Reply
  • Shawn Elrod
    Rental Property Investor · Dayton, OH · Member since 2019 · 21 posts · 11 votes
    5y

    @Julio Gonzalez what do you mean by 5G hub?

    0Reply
  • Jeff Piscioniere
    Investor · Shelton, CT · Member since 2016 · 218 posts · 225 votes
    5y

    @Diana T. This is a discussion I think we should be following!

    2Reply
  • Diana T.
    Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
    5y

    @Jeff Piscioniere

    Funny I glanced over this before and thought of you! Indeed

    2Reply
  • Nathan FisherBusiness Member
    Property Manager · Cleveland, OH · Member since 2020 · 305 posts · 261 votes
    5y

    @Bob S.

    I feel like I caught the last 6 months of those 25% cap rates and 40K or less duplexes. 

    [email protected]216-245-2901
    Aligned Properties Group4.292 Reviews
    WebsiteView Page
    1Reply
  • Ben Leybovich
    Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
    5y

    OK, Ohio is great. I'm picking up my stuff in Phoenix and moving back...!

    2Reply
  • Chris Williams
    Spokane, WA · Member since 2016 · 103 posts · 76 votes
    5y

    I love finding threads like this. All the more reason I have Ohio at #1 on my "best pure-investment opportunities" list. Now if only I could convince the partner to move there...!

    1Reply
  • Eric Nguyen
    Investor · Los Angeles, CA · Member since 2017 · 96 posts · 102 votes
    5y

    Overall losing population, but a great area to invest for opportunity zones, cheap MF & other tax benefits like 15 tax abatements.  Depends on your strategy

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Eric Nguyen:

    Overall losing population, but a great area to invest for opportunity zones, cheap MF & other tax benefits like 15 tax abatements.  Depends on your strategy

     Columbus, Ohio has been gaining population for a while now.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Christopher Smith
    Investor · brentwood, CA · Member since 2016 · 1k+ posts · 730 votes
    5y

    @Darius Ogloza

    Not just Columbus is growing.

    I've had properties for 20 years in Springboro between Dayton and Cincinnati where growth has been red hot stellar for well over 30 years running. It was also voted the best city in Ohio for young adults with children beating out all of the best neighborhoods in Columbus and everywhere else for that matter.

    If you live in Springboro you are easily within commuting distance for Dayton, Cincinnati and even Columbus (although that's more of a stretch)., Plus it's a more scenic area with very nicely wooded rolling hills than the flat incredibly boring grey farm fields around Columbus where I worked for years.

    My OH properties have appreciated very nicely and generate great ever increasing cash flows. They also balance very well against my CA properties which have appreciated astronomically, but have much more modest cash flow potential and are much more expensive to maintain.

    The Kmart analogy doesn't fit in my neck of the OH woods by a long shot, can't speak for all other areas of the state, but Columbus is far from the only hot game in OH it's just the one that the lollipop du jour crowd is parroting about currently.

    6Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free