Cincinnati Suburbs: Multi-family investing?

Question

Hi,Looking for advice from more experienced investors to the area and in general. Also, wouldn't mind making a few connections.I am relatively new to the Cincinnati market and am still looking for my first property. The idea is to househack.I have kept my eye on the market and not much has come up. So my question is, is small multi-family properties just not that common in the Cincinnati SUBURBS specifically? Am I waiting around for something that doesn't really exist?I am looking into the east side suburbs like Kenwood area, Milford area, Loveland area, Eastgate area, Batavia area, and so on. Problem is, I've hardly seen a multi family come on the market in any of those areas in the time I have been looking since August let alone one that is a deal.Any expertise is most welcomed. Any tips?

Joseph Cornwell · Answer

@Nicholas PatrickThose are some of the areas that I personally buy in as well. There is very limited small multifamily inventory in general, and yes even less for sale, and less still that would make any sense to buy in this market. Most of Clermont County is larger multifamily complexes, along SR 32, or SR 125. 50+ units. I have been buying for 5 years straight, and at this point my only decent leads come from direct marketing to landlords. It is still tough, but at least there is a chance of a good deal. You have have to get more creative, look at a larger market size, look at more up and coming neighborhoods with more inventory and lower price points, look at converting a single family to a duplex if allowable, look at house hacking a single family with roomates, or AirBnb. In this market you have a make a good deal, you wont really "find" one. Let me know if you need help with any of that as well, I mainly work with investor clients. Keep working at it!

Robert Speckert · Answer

@Nicholas Patrick you are right there are less duplexes in those areas you have stated. They can be found but they are gonna be harder to find. (Especially in this hot market!) I have single family rentals in those areas, but all my duplex and multi family are in other areas such as Norwood and Hamilton. Let me know if you need any help with anything. I’m a local realtor in Cincinnati area as well. Thanks.

Joseph Cornwell · Answer

@Nicholas Patrick Your timing in this market is difficult in the sense there is limited inventory for multifamily and a ton of competition in that space, it has steadily become more competitive the past 5 years. Wyoming is a very expensive market since it has the top public schools in the state of Ohio. Most rentals wont cash flow there, as for the others you mentioned those are great markets to look at, I would buy there as well. You are correct though, using FHA financing on direct mail is nearly impossible, so you may have to kind of take what the market gives you, its better to start to learn than wait for an incredible deal. Or use hard money to buy it and fix it up, then move in and refinance it after 6 months.

Brandon Goldsmith · Answer

House hacking is one of the bests ways to get into real estate. If you can't seem to find a deal on the market, I would explore trying to find one off-market. @Nicholas Patrick

Lee Yoder · Answer

The only way I've been able to find good deals is move further outside the city. There is a little less competition.

Zeke Liston · Answer

That's great, are you wholesaling in Columbus or buying yourself?

Justin Reed · Answer

Are you open to Columbus instead of Cinci? I'm getting into the multi-family property market there and it seems better than Cinci.

Zachary Elliott · Answer

@Nicholas PatrickWelcome! I live and invest in Northern KY. Since you're talking about Cincy suburbs, are you at all interested in Northern KY? There are good multi-family opportunities on this side of the river but I will say that things are pretty heated up right now. Most everything small multi-family that I've seen come on to the market recently has been gone within a day or two. If you're interested, you need to be ready to make an offer when it come on the market.If you want to talk, I'm always happy to spend a few minutes on the phone with another investor. Feel free to DM me. Thanks, Zac.

Nicholas Patrick · Answer

@Robert Speckert @Joseph Cornwell Both of you being agents pretty familar with the area just how rare are small multi families around the areas mentioned? Am I just incredibly unlucky with timing or what?Me and my family would be househacking with an FHA loan so direct mail is harder to do since the properties are usually in a less than livable condition as required by the loan.As I grow into an actual business I think Reading, Pleasant Ridge, Wyoming, and areas like that have awesome value, but for me and my family personally we are not a huge fan of the super dense neighborhoods. Would love to connect with both of you and chat more. Relatively new to the area.