Cincinnati vs Columbus, Ohio for Stability and Cash Flow?

Question

Sorry, I meant to say Cleveland vs Cincinnati, but there's no way to edit the title....  Or should I be considering Columbus too?

I'm researching out of state investment areas for cash-flowing, long-term buy and hold SFR properties. Looking for cash flow, and hopefully some appreciation, in a stable market that is undervalued. (In light of recent natural disasters, I'm also looking at areas that are less natural-disaster prone.) I'm currently focusing on researching Ohio, and specifically Cincinnati and Cleveland, and don't want to be spread into too many areas, so want to choose one.

What are the pros and cons of the 2 cities? What do you love or hate? Where specifically would you invest if you invested in one?

Account Closed · Answer

I love the irony that you originally accidentally posted "Columbus" instead of "Cleveland" 3 years ago but that turned out to be the right answer.

As for finding actual deals right now in Columbus -- good luck. I am a local, street-level BRRRR investor that is hunting and always trying to sniff out a deal on the ground, and they are an endangered species at the moment. They do exist, but you have to be super aggressive or just plain lucky. Anything going to auction seems to get redeemed if possible, and if it does auction it gets bid up. Wholesalers find deals but they mark them up high since there is so much demand. Money is even getting pumped into areas that haven't seen investment in years.

My experience is specifically North Linden, which seems like its getting into the middle of a flipping craze. There are white vans everywhere in driveways in the cheaper parts, and I'm watching a bunch that have come on the market lately. Lots of landlords are selling out too, which has in turn hugely increased rental demand and further heated up the market.

in short: yeah its bananas.

Tanvir Sattar · Answer

@Fritz Liedtke Toledo is a smaller market thus you can find really cheap units. I've been able to get some really good cash flow there.

Rob Gillespie · Answer

@Fritz Liedtke I do not have an opinion on Cincinnati or Columbus, but Cleveland has been really good to me for the past couple decades. I can say that the foreign investment and out of town folks are cranking the prices up in Cleveland. I would be happy to share my experience in C Town.

Robert Ellis · Answer

I would recommend columbus if you are looking at the Ohio market, much better economic numbers for Columbus.  Cash flow and appreciation all in one.

Zeke Liston · Answer

All three really have there pros and cons, I really like the Columbus market @Fritz Liedtke!

Stefan Tsvetkov · Answer

Columbus is (nearly the only) the strong performing city in Ohio this market cycle, 35% above its 2009 'fair valuation' level. It is also fairly valued currently based on house price-to-local-income relationship.

Cincinnati has performed decently at 18% above its 2009 level. On the other hand, Cleveland 'fair valuation' has been in 2006 (I commented on another thread) and its price performance is ~ flat since then.

Both Cleveland and Cincinnati are undervalued right now, while Columbus is not. Hope this helps!

Tom Ott · Answer

The big C's in Ohio are all good cities, but some are better than others. Cleveland has really seen a huge resurgence in popularity with developers and people in general. It also has the most going for it in terms of industry. The bio-medical tech industry has been booming here for awhile. Some major employers out of Cleveland are, Progressive Insurance, Sherin-Williams, American Greetings, and The Cleveland Clinic (which is the largest employer in Ohio) They are all headquartered in the greater Cleveland area. Due to all of the opportunities here, rent can be pretty high in the suburbs, however, housing is still affordable.

Good luck to you!

Joseph Cornwell · Answer

@Fritz Liedtke

I live and invest in Greater Cincinnati for several reasons. We still have pockets that are 2-3% deals, but are in lower end areas. I focus on C-B areas, that typically are 1-1.5% rent to purchase ratio. Typically, the better the neighborhood, and better the school district, the better appreciation play here. However, historically Cincinnati has low appreciation rates. Some pockets have 15-30% appreciation in the past few years, but those are now considered A areas, and very expensive with little or no cash flow. I am also a Realtor here in Southwest Ohio, (Cincinnati) If you have any other questions feel free to message me, best of luck!

Todd Dexheimer · Answer

Cleveland will have better cash flow overall, but will likely appreciate slower. Cleveland has consistently lost population for decades and according to the census bureau will continue that trend, albeit at a slow pace. There is argument to be made that Cleveland could be turning a corner and could see some positive population increases and job growth. Cincinnati has also had population issues, but is now seeing a growing population and is projected to continue with growth. Right now Cincinnati has become much more competitive, so housing is more expensive. You will likely see more appreciation in Cincinnati, however that will depend on the neighborhood. Both cities - like all big cities - have areas to be careful in.

I invest in Cincinnati but have looked at Cleveland and am paying close attention to the economics in the city.

Tanvir Sattar · Answer

@Fritz Liedtke another smaller city to consider in Ohio is Toledo.

Cincinnati vs Columbus, Ohio for Stability and Cash Flow?

Most Popular Reply