Ohio Market Still Good?

Member since 2023 · 37 posts · 23 votes

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

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Travis Biziorek

Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes

You're going to get replies from a bunch of agents saying it's still amazing. That's probably not true.

How do I know? Because the market in Detroit (where I primarily invest) is getting increasingly tighter. And Detroit has been historically stronger than Ohio from a cash flow perspective.

@Kerlous Tadres mentioned he has some duplexes that will meet the 1% rule. That's great, but the 1% rule has been essentially meaningless in most markets with rates where they are. It's antiquated at this point and I'd be leery toward anyone pitching properties based on this metric.

Do deals still work? Perhaps, yes. But you need to really understand how to run your numbers, your cities property tax rules and how to calculate true future taxes (I see a lot of folks fail here), etc.

Beyond all that, if you're simply looking to buy something with 25% down on the MLS you're really going to have a hard time in every market. Inventory is historically low so there's little to choose from. But without a value-add strategy you're simply not going to cash flow with that sort of strategy.

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Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Hey Shiwei, there are still a lot of great investment opportunities here in the Columbus area. I currently have two duplexes right now that I should be getting the 1% rule once it's fully rented out. The biggest thing I would say just look at the long run of investing here in Ohio, you'll get decent cashflow with some pretty good appreciation
[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate540 Reviews
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5 Reply
Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
You're going to get replies from a bunch of agents saying it's still amazing. That's probably not true.

How do I know? Because the market in Detroit (where I primarily invest) is getting increasingly tighter. And Detroit has been historically stronger than Ohio from a cash flow perspective.

@Kerlous Tadres mentioned he has some duplexes that will meet the 1% rule. That's great, but the 1% rule has been essentially meaningless in most markets with rates where they are. It's antiquated at this point and I'd be leery toward anyone pitching properties based on this metric.
Do deals still work? Perhaps, yes. But you need to really understand how to run your numbers, your cities property tax rules and how to calculate true future taxes (I see a lot of folks fail here), etc.
Beyond all that, if you're simply looking to buy something with 25% down on the MLS you're really going to have a hard time in every market. Inventory is historically low so there's little to choose from. But without a value-add strategy you're simply not going to cash flow with that sort of strategy.
6 Reply
Samuel DioufBusiness Member
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Quote from @Travis Biziorek:

You're going to get replies from a bunch of agents saying it's still amazing. That's probably not true.

How do I know? Because the market in Detroit (where I primarily invest) is getting increasingly tighter. And Detroit has been historically stronger than Ohio from a cash flow perspective.

@Kerlous Tadres mentioned he has some duplexes that will meet the 1% rule. That's great, but the 1% rule has been essentially meaningless in most markets with rates where they are. It's antiquated at this point and I'd be leery toward anyone pitching properties based on this metric.
Do deals still work? Perhaps, yes. But you need to really understand how to run your numbers, your cities property tax rules and how to calculate true future taxes (I see a lot of folks fail here), etc.
Beyond all that, if you're simply looking to buy something with 25% down on the MLS you're really going to have a hard time in every market. Inventory is historically low so there's little to choose from. But without a value-add strategy you're simply not going to cash flow with that sort of strategy.

Columbus isn't a cash-flow focused market. With the city being one of the fastest growing in the U.S. it wouldn't be reasonable to expect the highest cash-flow. Investing in Columbus will definitely be an appreciation play first and a cash-flow play second.

Interest rates will eventually go down and investors will be able to refinance and still have the good price that they bought at, locked in. I'm betting on demand increasing when rates go back down, which will only drive prices upward.
[email protected]614-662-1652
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4 Reply
Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Quote from @Travis Biziorek:

You're going to get replies from a bunch of agents saying it's still amazing. That's probably not true.

How do I know? Because the market in Detroit (where I primarily invest) is getting increasingly tighter. And Detroit has been historically stronger than Ohio from a cash flow perspective.

@Kerlous Tadres mentioned he has some duplexes that will meet the 1% rule. That's great, but the 1% rule has been essentially meaningless in most markets with rates where they are. It's antiquated at this point and I'd be leery toward anyone pitching properties based on this metric.
Do deals still work? Perhaps, yes. But you need to really understand how to run your numbers, your cities property tax rules and how to calculate true future taxes (I see a lot of folks fail here), etc.
Beyond all that, if you're simply looking to buy something with 25% down on the MLS you're really going to have a hard time in every market. Inventory is historically low so there's little to choose from. But without a value-add strategy you're simply not going to cash flow with that sort of strategy.

It's all about where your main focus is at. Do you want cash-flow or do you want appreciation? Columbus is definitely great location for appreciation. Also, yes 1% rule might not mean as much right now with the interest rates being as high. But you will still be able to cashflow in some sort of way if you hire the right team in place and know what exactly is going on with your property. But, I definitely agree with what you are saying about doing your research. Always have to dig deeper at where you are putting your money in
[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate540 Reviews
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0 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Kerlous Tadres:

Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Hey Shiwei, there are still a lot of great investment opportunities here in the Columbus area. I currently have two duplexes right now that I should be getting the 1% rule once it's fully rented out. The biggest thing I would say just look at the long run of investing here in Ohio, you'll get decent cashflow with some pretty good appreciation

Thanks for your insight, Kerlous!
1 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Travis Biziorek:

You're going to get replies from a bunch of agents saying it's still amazing. That's probably not true.

How do I know? Because the market in Detroit (where I primarily invest) is getting increasingly tighter. And Detroit has been historically stronger than Ohio from a cash flow perspective.

@Kerlous Tadres mentioned he has some duplexes that will meet the 1% rule. That's great, but the 1% rule has been essentially meaningless in most markets with rates where they are. It's antiquated at this point and I'd be leery toward anyone pitching properties based on this metric.
Do deals still work? Perhaps, yes. But you need to really understand how to run your numbers, your cities property tax rules and how to calculate true future taxes (I see a lot of folks fail here), etc.
Beyond all that, if you're simply looking to buy something with 25% down on the MLS you're really going to have a hard time in every market. Inventory is historically low so there's little to choose from. But without a value-add strategy you're simply not going to cash flow with that sort of strategy.
Thanks for your comments, Travis! I agree with you that value-add strategy is very important. Simple 25% MLS purchase is challenging!
0 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Samuel Diouf:

Quote from @Travis Biziorek:

You're going to get replies from a bunch of agents saying it's still amazing. That's probably not true.

How do I know? Because the market in Detroit (where I primarily invest) is getting increasingly tighter. And Detroit has been historically stronger than Ohio from a cash flow perspective.

@Kerlous Tadres mentioned he has some duplexes that will meet the 1% rule. That's great, but the 1% rule has been essentially meaningless in most markets with rates where they are. It's antiquated at this point and I'd be leery toward anyone pitching properties based on this metric.
Do deals still work? Perhaps, yes. But you need to really understand how to run your numbers, your cities property tax rules and how to calculate true future taxes (I see a lot of folks fail here), etc.
Beyond all that, if you're simply looking to buy something with 25% down on the MLS you're really going to have a hard time in every market. Inventory is historically low so there's little to choose from. But without a value-add strategy you're simply not going to cash flow with that sort of strategy.

Columbus isn't a cash-flow focused market. With the city being one of the fastest growing in the U.S. it wouldn't be reasonable to expect the highest cash-flow. Investing in Columbus will definitely be an appreciation play first and a cash-flow play second.

Interest rates will eventually go down and investors will be able to refinance and still have the good price that they bought at, locked in. I'm betting on demand increasing when rates go back down, which will only drive prices upward.

Thank you Sam! We can chat a bit more on your market.
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
2y
Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Both. There are risks and opportunities in Ohio. Same can be said for any location in the USA.
1 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @James Wise:

Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Both. There are risks and opportunities in Ohio. Same can be said for any location in the USA.

Agreed, thank you and it makes sense!
0 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
2y
There are thousands of (nauseating) posts (ads) on this subject.
1 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Mike Dymski:

There are thousands of (nauseating) posts (ads) on this subject.

Yeah I read quite a bit, that made me wonder if all investors are heading towards Ohio, then there is no differences like other markets.
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
2y
@Shiwei Qu investors are flocking to the Midwest cites due to lower entry costs.
You can't compare Columbus, OH to Detroit, MI as two different approaches. One is cashflow, the other appreciation.
[email protected]248-209-6824
Logical Property Management4.9458 Reviews
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2 Reply
Lucas Gallaher
Rental Property Investor · Toledo, OH · Member since 2024 · 9 posts · 9 votes
2y
Quote from @Drew Sygit:

@Shiwei Qu investors are flocking to the Midwest cites due to lower entry costs.
You can't compare Columbus, OH to Detroit, MI as two different approaches. One is cashflow, the other appreciation.

I agree,
Columbus has a diversified economy, and a robust job market which makes Columbus an attractive option for investors seeking long-term capital gains.

Now in Detroit you will see affordable property prices and high rental yields. Investors in Detroit can acquire properties at lower costs and generate significant rental income, providing consistent cash flow.
1 Reply
Mike PaolucciBusiness Member
Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 493 posts · 550 votes
2y
Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Hi @Shiwei Qu, I'm originally from San Francisco myself and started investing in Ohio back in 2021 before moving to Columbus in 2022.
Yes, there are still some opportunities, not only in Columbus but other cities as well. As previously mentioned, Columbus has shifted to more of an appreciation type market but there are still some deals that will show some cashflow.
If you're looking for cash-flow, then I would look at cities like Dayton & Cleveland.
[email protected]614-892-9184
Reafco - Mike Paolucci 512 Reviews
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4 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Drew Sygit:

@Shiwei Qu investors are flocking to the Midwest cites due to lower entry costs.
You can't compare Columbus, OH to Detroit, MI as two different approaches. One is cashflow, the other appreciation.

Thanks for your insight! Really just try to have a basic sense of other investors' feeling on Ohio and other Midwest market.
0 Reply
Jake AndronicoBusiness Member
Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
2y
@Shiwei Qu
People are making money in every market. Can you house hack near you?

Read these articles before investing in the Midwest:
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

https://www.biggerpockets.com/forums/48/topics/1159104-overl…

415-233-1796
1 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Lucas Gallaher:

Quote from @Drew Sygit:

@Shiwei Qu investors are flocking to the Midwest cites due to lower entry costs.
You can't compare Columbus, OH to Detroit, MI as two different approaches. One is cashflow, the other appreciation.

I agree,
Columbus has a diversified economy, and a robust job market which makes Columbus an attractive option for investors seeking long-term capital gains.

Now in Detroit you will see affordable property prices and high rental yields. Investors in Detroit can acquire properties at lower costs and generate significant rental income, providing consistent cash flow.
Thanks for your comment. I am more into the appreciation market like what we have here in CA, without too much negative cash flow. Long distance BRRRR is another strategy that I would choose.
0 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Mike Paolucci:

Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Hi @Shiwei Qu, I'm originally from San Francisco myself and started investing in Ohio back in 2021 before moving to Columbus in 2022.
Yes, there are still some opportunities, not only in Columbus but other cities as well. As previously mentioned, Columbus has shifted to more of an appreciation type market but there are still some deals that will show some cashflow.
If you're looking for cash-flow, then I would look at cities like Dayton & Cleveland.

Thanks Mike, glad to hear from another former bay area investor/realtor's insight.
1 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Jake Andronico:

@Shiwei Qu
People are making money in every market. Can you house hack near you?

Read these articles before investing in the Midwest:
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

https://www.biggerpockets.com/forums/48/topics/1159104-overl…

Thank you very much, Jake. I will read those two posts.
1 Reply
Mike PaolucciBusiness Member
Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 493 posts · 550 votes
2y
Quote from @Shiwei Qu:

Quote from @Mike Paolucci:

Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!

Hi @Shiwei Qu, I'm originally from San Francisco myself and started investing in Ohio back in 2021 before moving to Columbus in 2022.
Yes, there are still some opportunities, not only in Columbus but other cities as well. As previously mentioned, Columbus has shifted to more of an appreciation type market but there are still some deals that will show some cashflow.
If you're looking for cash-flow, then I would look at cities like Dayton & Cleveland.

Thanks Mike, glad to hear from another former bay area investor/realtor's insight.

Happy to connect if you have any other questions about Ohio or OOS investing in general.
[email protected]614-892-9184
Reafco - Mike Paolucci 512 Reviews
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0 Reply
Account Closed
Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
2y
Check out beautiful Toledo Ohio. Plenty of cash flow and appreciation. Truly the land of milk and honey. Also remembered to play the long game, the entire southwest of the country will have no water soon and there will be mass migration to the Great Lakes bordering states.

https://www.realtor.com/research/top-housing-markets-2024/
0 Reply
Shiwei Qu
OP
Member since 2023 · 37 posts · 23 votes
2y
Quote from @Account Closed:

Check out beautiful Toledo Ohio. Plenty of cash flow and appreciation. Truly the land of milk and honey. Also remembered to play the long game, the entire southwest of the country will have no water soon and there will be mass migration to the Great Lakes bordering states.

https://www.realtor.com/research/top-housing-markets-2024/

Thanks Michael. This is an interesting insight. I haven't really thought about it.
1 Reply
Andrea SleekBusiness Member
Real Estate Broker · Detroit, MI · Member since 2021 · 28 posts · 10 votes
2y
I love the Toledo market as well. Im in the Metro Detroit market but while shopping Toledo I was amazed by the size and style of homes available for much less than a similar community in the Metro Detroit suburbs and it's just 45-60 minutes away. Plus 3 hospitals, colleges, nursing schools, etc. Lots of transitional housing tenants!
[email protected]734-678-5720
1 Reply
Jeremy MelloulPro Member
Real Estate Agent · Columbus, OH · Member since 2022 · 83 posts · 83 votes
2y
Quote from @Shiwei Qu:

Hello BP community,

Just out of curiosity, if everyone who consider out of state investing has been recommended Ohio market, are there still true opportunities or actually risks? I locate in Bay Area and also consider OOS investing. Thank you for your insight!

Thank you!
Hi Shiwei,

You’re going to hear many opinions about which markets are great for investing, but I prefer to let the data do the talking. Ohio has three of the top 10 markets in the country at the moment. I’m particularly bullish on Columbus due to its significant economic growth and development, making it an attractive investment market. Its diverse economy, growing population, and strong job market all contribute to its appeal. If you want to discuss investing in Ohio further, let me know, and we can make something happen.

380-222-6485
3 Reply
Engelo RumoraBusiness Member
Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
2y
Quote from @Account Closed:

Check out beautiful Toledo Ohio. Plenty of cash flow and appreciation. Truly the land of milk and honey. Also remembered to play the long game, the entire southwest of the country will have no water soon and there will be mass migration to the Great Lakes bordering states.

https://www.realtor.com/research/top-housing-markets-2024/

I don't like Toledo anymore.
Too many out of state investors are here now making the market better than ever.
It's frustrating growing the business so much.
Preferred snail pace growth like when we first started hehe
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