Cincinnati Real Estate Investing - Are Cheap Houses Best?

Cheap Houses for Sale, Cincinnati Real Estate Investing

Getting ready to buy another duplex here in Monroe, but found some cheap houses for sale in Cincinnati in some unlikely areas. I bring it up because it’s easy to find cheap houses for sale in Cincinnati real estate markets.

Though a duplex is perhaps my favorite type of investment property, single family houses for sale in Cincinnati can be well worth it too.

It boils down to location and proper property management. I don’t like to manage my own properties, partially because of emotional involvement with tenants but also don’t want the hassle.

Cheap houses for sale, Cincinnati Rental Income Properties

I feel that real cheap houses for sale might be an attraction to newer investors excited about their first rental income property, but caution is warranted. Location should be high on an investor’s list of considerations. Even if you’re flipping Cincinnati properties, location matters in how successful your endeavors are.

It’s often said in the real estate industry, never buy the most expensive or the cheapest house on the block. I think that’s half-true when it comes to rental income property. The cheapest house for sale in a nice Cincinnati neighborhood might be the best investment for rental properties.

One must do the homework, ensure the renovations required achieve the new projected target property value and rent rolls produce a healthy return on investment.

I would caution newer investors to seek out and research middle class neighborhoods for rental income properties. Don’t invest in properties in declining neighborhoods. If you have substantial enough capital to buy up and renovate most of the homes on a block with professional property management, that might be worth pursuing.

Cincinnati Communities and Listings

Always check out the neighboring properties before you buy cheap houses for sale Cincinnati offers. Do your homework on what homes are renting for. Check with city zoning too, you never know what the city is up to unless you check.

Another thing to consider if you’re checking out Cincinnati real estate for rental income properties is whether to go section 8 or not. Higher renovation costs, but higher and guaranteed rent is attractive as well.

Either way, cheap houses can make for mighty returns, but can also be a huge flop. The neighborhood is everything. Investors can often do better in nicer neighborhoods than in poor ones.

House flipping on HGTV is not like what happens in the real world. It’s not that you can’t be successful at flipping homes, I just prefer buy-hold-and-rent. I tend to research and target areas with more than just one large employer and duplex or single-family housing near universities. If a neighborhood is nearing the decline cycle, I avoid it completely.