Thinking of buying in Dayton. Pros / Cons?

Question

I have been looking in and around the Columbus, OH market for a month or so. I see this market as having decent appreciation over time (still expecting somewhat of a slow down). The surrounding areas are also interesting including Mt. Vernon, Centerburg etc...but my eyes keep moving to Dayton. It is going to cash flow decently, but bot get as much appreciation. Does anyone have any thoughts on that?

Thanks!

Austin McClain · Answer

I agree Dayton is a great spot to invest in. The pros are it has great cash flow and is a short drive from large cities like Columbus and Cincinnati. The cons are it probably won't have the ridiculously high appreciation rate you see in places like Columbus.

I think choosing a market depends on your goals. If you want cash flow and good appreciation, look at Dayton. If you are not concerned with short-term cash flow but want to gain a lot of equity in 7-10 years, Columbus would be the best bet.

Remington Lyman · Answer

I like Dayton, Ohio. It is cheaper than Columbus, Ohio, and has a lot of upside. My sister-in-law just bought a property there.

Phil Catalfamo · Answer

I've seen a guy on social media promoting the idea of buying homes in Dayton, Ohio (in good areas) and renting them to folks who qualify for Section 8. Does anyone have any thoughts on this? Wasn't sure if this is a good business opportunity or not. would like to hear from investors and realtors who have some knowledge in this area. Thank you.

Jimmy Lieu · Answer

Hi Bryan, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just this month, I’ve gotten under contract for my clients for multiple 20%+ cash on cash rental properties so there’s definitely tons of opportunity here. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Fabiola Munarriz · Answer

I'm a realtor here in Columbus OH but I have recently expanded out to Dayton market as well. From what I've noticed with the properties I've sold out in Dayton is that there is a good amount of appreciation happening right now. Not as much as Columbus but it's a great place for people with lower capital to get their feet wet and start building. You can find some good BRRRRs out here as I've noticed it's a little harder to find a good BRRRR out in Columbus these days where you can pull all your money out. You will definitely see more growth in Columbus but I think Dayton is a great place to start.

Michael K Gallagher · Answer

@Bryan Escudero I operate in both Columbus and in Dayton.  The major difference although they are relatively close is the underlying economic drivers.  Columbus has positioned itself to be a hub of manufacturing and logistics in the country and companies have strategically positioned themselves accordingly and have driven the population growth we have seen and are expected to see in the coming decades.  The economics of the city are exceptionally diverse meaning that redundancy is built in against any kind of downturn or recession.  The Dayton market while having some upside and generally having lower capitol requirements to invest just simply does not have the underlying drivers that Columbus has.  They are a true tertiary market relying on the airforce base, the university, and some manufacturing. However, as long as you go into the market understanding that and managing your criteria and expectations accordingly, it can be a fantastic place to invest.

Anthony L Amos Jr · Answer

Dayton is definitely a good cash flow market! The new Honda plant in Jeffersonville should attract some Dayton residents as well. Not many places in Ohio are poised to appreciate like Columbus, but if cashflow and affordability is your goal, then Dayton is a good play.

James Wise · Answer

Dayton has a ton of crime and drug abuse. However, it's got a lot of low income housing that can be bought very cheaply and rented out to Section 8 tenants for a pretty nice profit. Honestly, it's really no different than investing in Cleveland, Akron or Toledo.

Gordon Starr · Answer

I live and invest in Dayton and my eyes turn to Columbus. Not so much because I want to invest there.. No, I really miss living there!

Gordon Starr · Answer

I can see is that Cbus is and has been a seller's market for a long time. Dayton has been in a buyer's market since like 1968 or nearly that ridiculous. This buyer's market now is kind of unprecedented. Also, the murder rate is up like 50 percent over it's previous bloody maximum. F***

Thinking of buying in Dayton. Pros / Cons?

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