Is Dayton Ohio a decent market for multi-family?

[Daniel J West]

I am just starting out and my local market of Portland, Oregon is a bit out of my price range ($500k is the starting price). Well, $100k+ for a down payment is my current obstacle. I started looking at other markets and Dayton Ohio has caught my eye due to much more affordable real estate. I seem to find plenty of deals that are less than $200k asking price, so a down payment is well within my reach. I have also visited there a few times for work, so I could piggyback on that for travel expenses to check on the properties from time to time. Ultimately I will need to work with a property management company to take care of the normal property needs. I am mainly just wondering if I am being blinded by the lower prices or is there a lot of potential there? There seems to be a lot of older buildings that are nearly 100 years old and in need of renovations. I could see this as a good BRRRR market, but as a complete noob, I want to make sure there isn't something obvious I'm missing. Any input would be much appreciated.

[James Wise]

Quote from @Daniel J West:

I am just starting out and my local market of Portland, Oregon is a bit out of my price range ($500k is the starting price). Well, $100k+ for a down payment is my current obstacle. I started looking at other markets and Dayton Ohio has caught my eye due to much more affordable real estate. I seem to find plenty of deals that are less than $200k asking price, so a down payment is well within my reach. I have also visited there a few times for work, so I could piggyback on that for travel expenses to check on the properties from time to time. Ultimately I will need to work with a property management company to take care of the normal property needs. I am mainly just wondering if I am being blinded by the lower prices or is there a lot of potential there? There seems to be a lot of older buildings that are nearly 100 years old and in need of renovations. I could see this as a good BRRRR market, but as a complete noob, I want to make sure there isn't something obvious I'm missing. Any input would be much appreciated.

 Most folks from Portland looking at Ohio come a few hours north to Cleveland. Much more going on in Cleveland than Dayton, so it's typically a more popular destination for people in your situation. At any rate, whether it be Dayton or Cleveland, out of state investing can be a difficult game to win. If it goes well, it's awesome. If it goes south, it sucks hard. If you follow the punch list below, you'll probably have success with either Dayton or Cleveland.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
• Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.