Investing in Cincinnati, Dayton, OH?

Question

Hi there! I’m an aspiring investor out of California and I’m interested in learning more about the Cincinnati/Dayton Ohio markets. Particularly for fix and flips or fix and holds.

What’s been your experience there?

Gary L Wallman · Answer

I too am a fix and flip and buy and hold investor in the Dayton suburbs.  Have 3 flips going currently and have 110 rental doors.

Areas like Beavercreek and Centerville have good schools and are mostly A neighborhoods. Slow and steady appreciation, but only yield about .75 percent in terms of rent to purchase price.

Areas like Kettering, Riverside and Xenia are more B and C neighborhoods.  Schools not as good and appreciation less likely, though it's been quite good the last year or so.  1% rule easily met here. I avoid Dayton proper like the plague.

I have had amazing luck. Great tenants with little turnover.  We rehab our properties to one grade above the neighborhood and screen our tenants carefully.

I have 80 percent of my properties in the B, C areas for maximum cash flow and 20 percent in the better areas for cash flow with more upside on appreciation.  It's worked out great, but I did have excellent timing starting in 2008.

More difficult market right now as a seller's market has emerged in the last year or so.  Still a dream compare to California.

If you'd like to PM me, I can turn you on to my realtor who's a local star.

Eric Mielke · Answer

@Sasha Josephs I've been researching the Dayton, OH area looking to get into the market there soon. Lots of different class of neighborhoods very close to one another.

I know @Darrin Carey and @Ozzy Smith are well-seasoned veterans in Dayton and can give a lot of good info since they're local.

This thread might answer a few of your questions to get started: https://www.biggerpockets.com/forums/88/topics/501229-out-of-state-real-estate-investing-in-dayton-ohio

Darrin Carey · Answer

I moved here is 2005, with the intent of staying for 3 years. I'm still here because of the real estate investing.Generally, I agree with @Gary L Wallman, except for 1 point. I don't avoid the City of Dayton; however, I am selective there. There are good investment areas in the city, and some that are "rougher".There are still a lot of great opportunities here for cashflow properties. Right now, it's harder to find fix and flip deals, but they are still out there.Thanks @Eric Mielke.

Sasha Josephs · Answer

@Bryan Blankenship Thanks for the info Bryan! That's encouraging to hear.

Bryan Blankenship · Answer

@Sasha Josephs GREAT areas, but as @Darrin Carey said, you have to know the neighborhoods well to truly take advantage of the markets here. Dayton is really undervalued, but that's mostly because there are pockets that are golden, and a few streets over, it's D Class. If you know the ins and outs, you can easily get some cashflow going!

Cincinnati is also good, but again, it's knowing the suburbs and desirable school districts that can make or break your investments, just like anywhere else. I've been all over the country investing and flipping, and, ultimately, settled back here because of the markets, just like Darrin! :)

Stefan Tsvetkov · Answer

I agree. Dayton is 19% undervalued based on historical house price-to-local-income relationship. Price performance has not been particularly strong though, as just 5% above its 2006 'fair valuation' level. Cincinnati is undervalued too, though a better price performer this cycle.

Henry Marshall · Answer

@sasha@Eric I am in the Cincinnati Ohio market lets network www.webuyhousesintheusa.com

Chris Garzino · Answer

@Bryan Blankenship would you mind sharing some of the desirable neighborhoods in Cincinnati where you invest?  The information would be greatly appreciated.

Thank you

Chris Garzino

Sasha Josephs · Answer

@Gary L Wallman Thank you! I'll send you a message.

Investing in Cincinnati, Dayton, OH?

Most Popular Reply