Turnkey In Dayton Opinions and Feedback

16 Replies

I'm considering a SFH property in Dayton, OH. This would be my first purchase in this market. Am interested in hearing what you all have to say about this market?

Are there areas I shouldn't purchase in? The property I am considering is in this area: http://bit.ly/2E5FoDp

Turnkey Cost is $74,900 and rents for 825. It's a 2/1. 

There are definitely areas I wouldn't invest in, but then we tend to prefer Class B. So it depends on what you're looking for. Feel free to PM me the address of the house you're considering, and I'll be glad to give you my opinion on it. I've lived in the Dayton area all my life, though I am most familiar with the south suburbs. It's not a bad area to invest in--we have no trouble whatsoever keeping our apartments rented. The biggest disadvantage here is that the property taxes are very high in relation to market rent.

@Carlos Rovira Nobody is getting $825 for a 2BR house in that neighborhood. A 3BR, maybe, but even that's still pretty optimistic.

Updated almost 2 years ago

A closer look at the area you've highlighted, and I will amend part of my previous comment: $825 for a 3BR in the southern part of that area is possible. As is a sale price of $74,900. For a 2BR though, it's still way overpriced, and over-promised at a rental rate of $825.

I've lived in Dayton for 14 years and considering buying my first property here in Dayton or elsewhere in Ohio. Let me know if you need any 'boots on the ground' or have any questions about the area. I'd be happy to help. 

That property is near Highway 35 which makes it super simple to get to the University of Dayton, downtown Dayton, the hospital, Wright State University and Wright Patterson Airforce Base, all within a few minutes. So it's centrally located, although that area would probably be a C class (depending on the exact street/location).

Linden Heights has some really nice houses, especially on the hilltops, and if it is one of those mid-century masterpieces (guilded carpentry, steel supports, elevated foundations) with lots of light and fully rehabbed, then I like the deal. Also, 2 bedrooms with open designs and the same square footage is worth at least as much as three small bedrooms. Keep in mind that only just recently did this and other C neighborhoods in Dayton rise above 50 k for an all fixed up sf. Now the owners can get a mortgage where previously they could not. Flipping houses was pretty near impossible, but buy and hold with cash had tremendous cash flow. Now, there is a lot of upside price and rent potential. Fully rehabbed homes rent very quickly and for good rents. As others point out, it may not be THAT good, though. It is a rare two bedroom that goes for over 750 per month anywhere in dayton.

@Carlos Rovira

For comparison take a look at this mid century hilltop 4 bedroom 2 bath in an up and coming part of North Riverdales' c neighborhood area. I rented this last week for 890 on a prohibitive 3 year lease with some great double income tenant couple. I love them and am doing following move-in updates just cuz of that. I ran the rental numbers through the bigger pockets calculator and it justified a price of 80k.

I just don't want to see a fellow member get burned like you may be about to be.

I would jump at that price. The address is 3510 and it is on Kathleen Ave in Dayton zip code 45405. All the photos are just a week old and particulars are up on Zillow for that address.

Originally posted by @Carlos Rovira :

I'm considering a SFH property in Dayton, OH. This would be my first purchase in this market. Am interested in hearing what you all have to say about this market?

Are there areas I shouldn't purchase in? The property I am considering is in this area: http://bit.ly/2E5FoDp

Turnkey Cost is $74,900 and rents for 825. It's a 2/1. 

 Many cities in Ohio & the majority of the Midwest can offer a better return than that. For $75k you should be able to purchase a 3/1 with rents above $900.

Originally posted by @Carlos Rovira :

I'm considering a SFH property in Dayton, OH. This would be my first purchase in this market. Am interested in hearing what you all have to say about this market?

Are there areas I shouldn't purchase in? The property I am considering is in this area: http://bit.ly/2E5FoDp

Turnkey Cost is $74,900 and rents for 825. It's a 2/1. 

 That seems like a decent price for Ohio. I would suggest looking into the surrounding market. Is it something you want to invest in? For example, what makes Dayton so special? Do you see industry there, jobs, demand for rentals, a possible boom coming etc? Key factors to look for.

Here's a 2/1 SFR listing for 850 in Linden heights. Curious fact in Dayton is that some of the best built houses and nicest smaller house neighborhoods are in C. Now the owner occupants are coming back into Dayton with mortgage buying power! So many people want a nice smaller house in town. You almost have to go C for that in Dayton. We locals have to get used to the new prices it seems. Link:

https://www.zillow.com/homes/for_rent/Dayton-OH/house,mobile_type/35116620_zpid/31184_rid/39.77467,-84.108625,39.735079,-84.182439_rect/13_zm/

Prices and rents have indeed been rising in Dayton as a whole, however, just because someone is asking $850, it doesn't mean they will get it. I know the investor/agent who owns the property on Coventry, and they have a tendency to be rather optimistic in their numbers. They are especially optimistic on this one given the property's proximity to Linden and Smithville, as well as the lack of a garage. It was listed for rent for $850, as well as for sale for $64,900 (comps say $700 and $50-55K). Both listings were terminated late last week - which does raise my curiosity level. Maybe they'll prove me wrong.

@Christina Carey Six months ago, for sure, but now, the Dayton market may prove us both wrong. Here is a hilltop mid century example in Linden Heights. Its a 3/1 rental about the same size listing for 950.. Hard to believe, but things may be really taking off. Are those stone window sills? I love that kinda construction.

https://www.zillow.com/homes/for_rent/Dayton-OH/house,condo,apartment_duplex,mobile,townhouse_type/35116635_zpid/31184_rid/39.752098,-84.141702,39.742199,-84.160156_rect/15_zm/

@Carlos Rovira Since nobody recommended a good turnkey provider, these may be in short supply here in Dayton. I have a half dozen turnkeys and looking to sell only one, don't really care which. PM me if interested! Good luck,

Gordon

@Carlos Rovira

What are you looking for - fully rehabbed properties with screened tenants and management in place? With the prevailing prices in Dayton proper, it doesn't pay to sell such properties. That may change. I see two relatively pricey 2/1 bungalows advertised on Zillow over near Linden heights for 825 and 895 per month. If people are actually getting those rents, it changes everything. There is no real reason why Dayton should have the lowest prices in the known universe (outside of Detroit).

Originally posted by @Carlos Rovira :

Can anyone recommend a good TurnKey provider in Dayton (or other Ohio markets)?

Forgive me for the late reply Carlos, but I can provide a few truly quality turnkey providers. These are folks who create turnkey properties with transparent numbers that are executable and repeatable.

@Nathan Hillier would be one of them.

I have Nathan's contact info, feel free to contact me and I will make the connection

 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here