Cleveland Ohio Vs Columbus Ohio Investor Review

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Cleveland Ohio Vs Columbus Ohio Investor Review

Tonye Jack
Brooklyn, NY · Member since 2018 · 67 posts · 56 votes

I'm a first time out of state investor living in NYC and looking to purchase property in Ohio. In speaking with realtors in either market, I've received "bias" opinions based on the areas they serve. Any investors with experience in either of these markets, share their thoughts likes/dislikes.

Thank you

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Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
5y
Originally posted by @Tonye Jack:

I'm a first time out of state investor living in NYC and looking to purchase property in Ohio. In speaking with realtors in either market, I've received "bias" opinions based on the areas they serve. Any investors with experience in either of these markets, share their thoughts likes/dislikes.

Thank you

 Hi Tonye, there are certainly pros and cons to both markets. Columbus has overall higher population growth, see chart below. Cleveland will generally have higher cashflow. I would sit back and think about your goals, are you more looking for very strong cashflow or good cashflow with great appreciation? I hope I remained unbiased here, either way, I hope you succeed, good luck! 

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  • Michael Manchester
    Member since 2021 · 22 posts · 63 votes
    5y

    Hi Tonye. I work with a lot of investors and there are quite a few of them that are all over Ohio, even though they are living out of state. For the most part they seem to be finding more deals in Cleveland, but the dollar amounts are less. The properties in Columbus seem to be a little more lucrative, although more expensive on the front end. So while I haven't actually turned any property in Ohio myself, based on the folks I talk to on a regular basis either city is a good bet right now.

    1Reply
  • Armin Nazarinia
    Saint Paul, MN · Member since 2018 · 189 posts · 107 votes
    5y

    @Tonye Jack- I closed on my first property in Columbus Ohio last month and so far so good, but can't speak for it long term yet. I did do quite a bit of research and actually narrowed it down to the top markets of Columbus, Cincinnati and Dayton (smaller town but seems like it'll get grown into by the other two. Cleveland looks good from cash flow however, they have a population decline and what seemed like not a ton of growing employers (I could be wrong this is just my unbiased out of state research so I'm sure someone will chime in here to correct me). Our plan was grow in once city and see how it goes then move to the next for some diversification, if you plan on growing in a similar fashion I think you just have to pick your FIRST market and buy a good deal, I always learn way more going through owning a property in the area I'm looking.

    1Reply
  • Tonye Jack
    OP
    Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    5y
    Originally posted by @Armin Nazarinia:

    @Tonye Jack- I closed on my first property in Columbus Ohio last month and so far so good, but can't speak for it long term yet. I did do quite a bit of research and actually narrowed it down to the top markets of Columbus, Cincinnati and Dayton (smaller town but seems like it'll get grown into by the other two. Cleveland looks good from cash flow however, they have a population decline and what seemed like not a ton of growing employers (I could be wrong this is just my unbiased out of state research so I'm sure someone will chime in here to correct me). Our plan was grow in once city and see how it goes then move to the next for some diversification, if you plan on growing in a similar fashion I think you just have to pick your FIRST market and buy a good deal, I always learn way more going through owning a property in the area I'm looking.

    Thanks for sharing your thoughts. There's nothing quite like learning through the experience. Do you plan on self managing remotely or have a PM in place?

    1Reply
  • Tonye Jack
    OP
    Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    5y
    Originally posted by @Michael Manchester:

    Hi Tonye. I work with a lot of investors and there are quite a few of them that are all over Ohio, even though they are living out of state. For the most part they seem to be finding more deals in Cleveland, but the dollar amounts are less. The properties in Columbus seem to be a little more lucrative, although more expensive on the front end. So while I haven't actually turned any property in Ohio myself, based on the folks I talk to on a regular basis either city is a good bet right now.

    Thanks for sharing. The draw to Cleveland is the low entry point and potential cash flow. I do have concerns about the longevity considering the population decline.

    0Reply
  • Armin Nazarinia
    Saint Paul, MN · Member since 2018 · 189 posts · 107 votes
    5y

    Property manager, we want to focus on things we enjoy and property management wouldn't be one of those things so that's built into our analysis when we buy a property.

    1Reply
  • Michael Manchester
    Member since 2021 · 22 posts · 63 votes
    5y

    @Tonye Jack Population decline can be a concern for sure. However, if you are looking at managing a rental that is geared toward first time renters or lower income families, those seem to stay rented more than say a luxury high rise condo. In fact a lot of my clients don't look at higher end properties for their portfolio at all because of the inconsistency. Once again it comes down to goals, and how good your DSCR is looking.

    1Reply
  • Reece Iovine
    Realtor · Columbus, OH · Member since 2016 · 170 posts · 227 votes
    5y

    I'm a realtor in Columbus however I'll try to remain non biased. Columbus is great when it comes to appreciation and moderate on cashflow, however it is very competitive and therefore scale can be difficult. Construction in Ohio in general is also very expensive compared to other markets like Texas. Cleveland is a great city, I lived downtown for a year and love it much more than cbus, but when it comes to macros Cleveland cant compete. Personally I would be nervous to invest there, unless you are buying downtown which is very difficult population is decreasing everywhere else. Cincinnati I don't know much about so I'll let someone else speak on that.

    3Reply
  • Spence Kal
    Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
    5y

    I invest in areas 10-15 miles outside the city of Cleveland. There may be population decline but I don’t think Cleveland is going away anytime soon, a deal is a deal no matter where it is. From what I’ve heard Cleveland is more towards cash flow, so don’t expect appreciation, and Columbus leans more towards appreciation and lower cash flow. There are some cheap deals around Cleveland, I looked at a decent property for 70k last summer, great condition decent C area. I personally wouldn’t go much lower than that because some places can be old and dumpy, in bad areas. I’ve heard that cash flow here can be eaten up by bad tenants and maintenance headaches, so a lot of things look good on paper, but then don’t turn out so great in reality, so be careful with that. I’ve heard that Capital cities are generally more recession proof so that may be another big reason people like Columbus. If I lived closer I’d probably invest there instead of Cleveland honestly. I love where I live and just want my first investments to be close so I can keep an eye on them before going OOS

    2Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Cleveland is better for cash flow but in Columbus, you can get a decent cash flow and appreciation combo. @Tonye Jack

    [email protected]614-963-3340
    4Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Tonye Jack:

    I'm a first time out of state investor living in NYC and looking to purchase property in Ohio. In speaking with realtors in either market, I've received "bias" opinions based on the areas they serve. Any investors with experience in either of these markets, share their thoughts likes/dislikes.

    Thank you

     Hi Tonye, there are certainly pros and cons to both markets. Columbus has overall higher population growth, see chart below. Cleveland will generally have higher cashflow. I would sit back and think about your goals, are you more looking for very strong cashflow or good cashflow with great appreciation? I hope I remained unbiased here, either way, I hope you succeed, good luck! 

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

    I'm a first time out of state investor living in NYC and looking to purchase property in Ohio. In speaking with realtors in either market, I've received "bias" opinions based on the areas they serve. Any investors with experience in either of these markets, share their thoughts likes/dislikes.

    Thank you

    I have a biased opinion about Cleveland Ohio Vs Columbus Ohio. Columbus is better than Cleveland due to our job and population growth

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
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    4Reply
  • Carrick Young
    Rental Property Investor · San Jose, CA · Member since 2015 · 83 posts · 44 votes
    5y

    I've purchased two rental in Cincinnati and they have worked out well so far. Same thing as Cleveland as far as population decline but that is why I balance it out with Jacksonville, FL. 

    1Reply
  • Tonye Jack
    OP
    Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    5y
    Originally posted by @Carrick Young:

    I've purchased two rental in Cincinnati and they have worked out well so far. Same thing as Cleveland as far as population decline but that is why I balance it out with Jacksonville, FL. 

    I like that, seems like your treating real estate like a stock portfolio to create a good asset mix. 

    0Reply
  • Tonye Jack
    OP
    Brooklyn, NY · Member since 2018 · 67 posts · 56 votes
    5y
    Originally posted by @Armin Nazarinia:

    Property manager, we want to focus on things we enjoy and property management wouldn't be one of those things so that's built into our analysis when we buy a property.

    I agree!!! Do you have an PM recommendations?

    0Reply
  • Lee Yoder
    Rental Property Investor · Lebanon, OH · Member since 2016 · 224 posts · 228 votes
    5y

    I totally agree with others have said in this thread already. You are looking at two very different markets. If you're looking to get in at a good price and you're focused on cash-flow, I would buy in Cleveland. If you're looking for appreciation and want the security of investing in a market with very good population and employment trends, I would buy in Columbus. 

    1Reply
  • Armin Nazarinia
    Saint Paul, MN · Member since 2018 · 189 posts · 107 votes
    5y

    @Tonye Jack- Yes I have a list of them and interviewed a bunch to understand the pros and cons. At this point we narrowed it to two that we would use and we are using one now. I think it depends on the property class you're looking at. PM me and I can share.

    0Reply
  • Joshua Espejo
    Investor · Las Vegas, NV · Member since 2018 · 29 posts · 10 votes
    5y

    Out of curiousity, what type of cap rates are you guys seeing in Cleveland vs Columbus? And what are the typical cost entry points in Columbus at the moment for SFH and MFH?

    I am currently on the lookout for a market to get my feet wet in the Midwest -- Cincinnati and Columbus keep coming up.  

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

    Out of curiousity, what type of cap rates are you guys seeing in Cleveland vs Columbus? And what are the typical cost entry points in Columbus at the moment for SFH and MFH?

    I am currently on the lookout for a market to get my feet wet in the Midwest -- Cincinnati and Columbus keep coming up.  

    0-30 in Columbus, Ohio 

    [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
  • Stonewall Burks
    Member since 2021 · 22 posts · 11 votes
    5y

    @Tonye Jack Cleveland cheaper but longer hold. Lots of ghettos left. Google Greg Parker

    0Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    5y

    Hey There @Tonye Jack I own properties in Cleveland and I am actually selling them off because the turn is no longer worth it, lots of obstacles that I have personally faced.  I actually have grown quite fancy to Columbus, After doing some research, seeing other posts throughout BP and just doing some personal research I have found that some of the reasons why investors are flocking to invest in this cosmopolitan community would be:

    - Second largest City in the Midwest just behind Chicago
    - Cost of living is very low with a high quality of life when compared to other large cities
    - First among the 10 largest Midwest cities in US population and job growth
    - Home to the second (Working its’ way up to the first) largest university in the United States! (Over $7B in Capital Projects and over 60,000 students)
    - 1st "Smart" City in the US ($50M to the DOT Grant)
    - 50% of the population in Columbus is currently RENTERS
    - Market Rents are low across the existing MF inventory
    - Over a dozen different neighborhoods with a 70% price appreciation over the last 5 years!

    I have seen that Columbus Investment Properties provide investors with a unique comprehensive platform that makes Columbus one of the most logical place to invest in. The area is always expanding the university district as well as downtown, from Access to low cost regional talent, competitive real estate cost, strong work ethics and excellent facilities for education, sports, shopping, and leisure.

    I hope this helps :) 

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

    @Joshua Espejo this is Columbus MF market...the D's are becoming C's very rapidly...and the C's are becoming B's

    937-979-7000
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    2Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    Median income and rents are still lagging in a couple of neighborhoods, but they are normalizing...trading a bit of rental income for astronomical appreciation is the trade off...

    937-979-7000
    Realize Multifamily Group11 Review
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    1Reply
  • Clay Boykin
    Real Estate Agent · Columbus, OH · Member since 2021 · 98 posts · 101 votes
    5y

    @Tonye Jack Ohio has its up and downs (more ups than downs actually). Columbus is actually in the top 20% in regards to the population & real estate growth. Depending on your investment strategy, whether it's a BRRRR, Fix&flip, live&flip, house hacking, etc. Columbus has it. It seems to be that most investors are using either the BRRRR method or house hacking. The average ARV for Columbus is maintaining around 70%, which is fantastic for returning investors. I would say if you want to enter into a solid market, with around 50-100k, this is the market to start in. At the end of the day, it all depends on what your strategy is. I would suggest starting with educating yourself as much as you can before you enter into a flip. Feel free to reach out to me as much as you want. Either way, Happy Investing!

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y

    Because of the affordability, great neighborhoods and schools, and good night life, Columbus has attracted a-lot of businesses to setup shop, hence the increase in population over areas like Cincinnati and Cleveland.

    0Reply
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