Cincinnati market

[Jason Fay]

Hi,

I have around 500k for a downpayment on 1 or many multifamily buildings and cannot find the required rates of return that I need in my area (seattle). Does anyone have guidance or experience win the cincinnati, OH market. Areas that make sense? Things to avoid? The NOI and cap seem much higher. Any guidance would be appreciated. I not looking for a project more something to diversify myself.

Thanks,

[Darrin Carey]

@Jason Fay Once the ROI gets to good to be true, it's time to run. Most the midwest has better returns than the coasts. As @Jered Sturm said, in Cincinnati, Dayton, and others, streets can vary dramatically from block to block, and from street to street, especially in the city. It's less dramatic in the suburbs.

You absolutely have to take a few days to visit the area and look around. There's nothing like hearing gunshots in the background to remove any doubt about an area. I moved to Dayton a decade ago, and had to learn the areas one at a time. It's still amazes me sometimes when I find a great looking building, and then see the neighborhood it's in.

The biggest thing to determine is how much ROI you want, in exchange for how much drama. Then again, even the nicer properties in the midwest have a pretty good return compared to the coast.

Since you said you don't want a project, I'll extend that and assume you don't want dramas either. Come visit, and pick a nice property in an A or B neighborhood. Good return, minimal drama.