Dayton rental properties around Wright-Patterson Air Force base.

11 Replies | Dayton, Ohio

I’m from Idaho Looking for buy and hold rental properties in Dayton.  Just bought my first investment properties ever a 3 bed 2 bath home in new Lebanon west of Dayton and a 3 bed 1 bath in the Shiloh area.  Just waiting to get title and rehab and find renters. Now looking for my next deal. I would love to find Dayton’s “sweet spot” for best cash flow, appreciation potential, in quality neighborhoods where tenants take good care of the property and wondered if renting to Air Force personnel might be a good strategy.  Do any of you guys with Dayton experience have any advice on this strategy?  And what sub markets would be best to focus on or steer clear of?  For instance, is Huber Heights close enough to attract air force personnel?   And are there sub markets within Fairborn that would be best, or to stay away from?   Thanks for any advice I’m a sponge for knowledge. 

Those are a lot of good questions, but a large part of the answers depend on your goals, objectives, and investing style. 

Personally, I like renting to the Military, but it's not a specific target market for me. Huber, Kettering, and Fairborn have a lot of Military and a close enough to the base. Generally anything within about 20 miles or so is close enough for the majority of base personnel.

I find my personal sweet spot seems to be neighborhoods where the ARV on a 3 bedroom runs from 70-120k. Other investors prefer areas with higher or lower values. If the ARV is lower than that, the long term appreciation potential starts to diminish.

Make sure you get an excellent local PM. There are huge differences in performance, and being remote, that will make or break your investments.

I am also looking to start investing in the Dayton area! I live in Georgia but have a lot of family in a nearby town and just closed on a second home there, so I will be traveling to the area at least a few times a year. Maybe we can help each other out! I'm planning a trip up next month and might do a little driving around and checking out some neighborhoods. If there are any properties you want me to drive by let me know! I have not yet started the search for a property manager. 

Thanks Darrin good advice.  Do you find most Air Force guys can afford the rents on the $70-120 k homes?  I guess a better question is what rent range do these guys usually look for?  

Also I know Kettering and much of Huber Heights is quite nice neighborhoods, I don’t know about Fairborn, how would you describe Fairborn? 

As for my goals, I want 30 doors single family or small multi-family.  I can pay cash for now, but hope to brrrr if possible, to get my seed money back, but finding guys in Dayton to do the rehab might be hard.  I might have to send a friend from Idaho to do rehab.  Eventually I’ll run out of refinance with Freddie Mac capping at 8-10 properties and I’ll have to be more creative. 

Thanks Tabitha, that could be cool!  I’ll probably be coming out as soon as I get title to the 2 homes I bought, might not be until,November as I bought them on auction.  We may be able to help each other for sure.  I’m kind of new to the forums and how this works but maybe we could IM on here and exchange phone numbers. 

Military personnel have a huge pay range, from the low paid new recruits, to the well paid senior leaders, and everything in between.

Fannie/Freddie have loan limits, but theirs is an artificial world focused on owner-occupants. Investors are an "also ran" with them. In my world, there is no limit on the number of mortgages you can have. (A friend of mine has over 100 bank mortgages......)

If you're buying properties that are reasonably decent, a good PM can handle getting them ready for rent. Full rehab contractors are in short supply locally, so be aware there may be delays in getting work started. I bought one 3 months ago, and rehab started this week.

When you look at your goals/doors, keep in mind higher projected returns with lower priced houses come with much higher risk and drama. It's something that not enough people talk about.

Wow a 3 month wait, that’s about like south east Idaho! There just aren’t enough quality guys going into construction.  I’ve considered a ARBNB cabin in island park (by yellowstone) but my really good friend won’t be able to get to it til next spring if I pull the trigger.  

Ps Darrin I know you do hard money loans and I definitely have you in mind for when I hit the skids on bank loans.  

My cousin was an engineer at the base many years ago and he makes bank.  He now is at Hill air force in Utah.  so I know many guys do well.  What % of all people at the base are new recruits?  And what rent could they afford? 

Thanks for the tip on the BAH tables. I looked at the bases website.  They have plenty of money for a nice place, even the E1 with no dependents.  Ok I guess I need to call you sometime, I’m 2 hours different time zone so I don’t want to bug you tonight, but your going to have to educate me about “rental loans”