Ohio Taxes && Cleveland v Cinci v Columbus

[William F.]

Hey BP! I'm looking into Ohio for my next multifamily rental property. It's cheaper than PHX, but I'm concerned about taxes. It looks like property tax alone can take $100/mo off my cash flow compared to a more friendly state. Thoughts? I'm also torn between the three big cities, and I'm leaning toward Cleveland (on the lake!). Is there a consensus on the standout favorite for growth in the next 5 years? I'm talking with a data/web guy to put together a private app to visualize population and job growth data. Kind of a 'REI-consider-this-place' web app. Please also let me know if there is something else I should put in there!

[Jered Sturm]

Our company focuses on Atlanta and Cincinnati.  Below are some basic focusing points on those markets. I thought you may find it helpful when considering Cincinnati.

Jobs / corporate infrastructure-We choose tier one markets. These are cities that have a developed, established real estate markets. These cities tend to be highly developed, with desirable schools, facilities, and diversified industry in several large corporations. Cincinnati Procter and gamble Kroger 5/3rd bank General Electric Atlanta Home Depot UPS Coca-Cola Delta Supply and Demand- Watching how much inventory, and how many renters is key to making sure you will have enough renters or buyers to keep vacancy rates down. Cincinnati vacancy rate 3.7% Atlanta vacancy rate 4.6% Rental Rate Trends-This has a lot to do with if the markets economy is growing, stabilized, or declining. Cincinnati Annual Rent Growth. 3.4% Atlanta Annual Rental Rate Growth 6% THOSE POINTS ABOVE ARE ALL IMPORTANT BUT MEAN NOTHING WITHOUT THE FOLLOWING: Does The market fit the investment goals? Everyone has different goals some investors invest in real estate to preserve wealth, some to lessen their tax burden, and some to make cash flow. Picking a market that gives you the best chance at your goal is vital. Do you know the market really really well? If you can't drive around a city you're considering investing in without a GPS then you don't know it well enough. You have to know schools, streets, and neighborhoods. Of the three partners of SNS we live in both Atlanta and Cincinnati. Do you have Relationships in the market? If you buy something out of the market you live in but don't have quality relationships with team members to help, the investment is likely to crash and burn. Having long-lasting trusting relationships is key to quality teams and ultimately investment success.