Dayton, Ohio Thoughts?

Question

Hello BiggerPockets community!

I am a novice to real estate investing, and currently educating myself through various ways. My goal is to utilize the house hacking strategy within the next two years. It seems this is a common starting point for many new investors and rightfuly so.

I would love to hear some thoughts on the Dayton, Ohio real estate market, particularly in single and small multifamily properties. Could this potentially be an up and coming market?

Mark Nickoson · Answer

@Reeves Coggin

@Mike D'Arrigo

So I have lived in Dayton all my life. I have rental property in the Dayton metropolitan area.
The problem with going with the Census data is that the city limits of Dayton is a pretty small area. Only about 137,000 people. Within the city limits is half getto. If you buy in the Dayton limits, you can pay as little as 32K off the MLS. I just looked. But you do renovations then rent it for a few years, it is all torn up again. Downtown is mostly a "D" neighborhood. I invest about 10 miles from town. I live about 15 miles from downtown. The metro as a whole is booming. Near Centerville there were at least 100 homes built last year. Springboro is growing. Building is spilling over into Warren County.

You have to consider the schools, jobs and businesses in Dayton.  Dayton is a medical mecca.  I can drive 10 minutes and go to at least 4 different hospitals on the south side of Dayton.  There are one more in Dayton and one in Xenia.  Dayton is home to Wright Patterson AFB which is the 5th largest employer in the state at 28,000 employees.  Dayton has the University of Dayton, Wright State University, and Sinclair Community College which has an enrollment of over 25,000 and is one of the largest community colleges in North America.  And there are a bunch of other one-building colleges.

Dayton / Montgomery County has a fantastic Metro park system, lots of local parks.  And old railroad tracks were converted into bike paths.  The whole network can take you across the state.  There are restaurants, there's entertainment, we have a local baseball team, plenty of museums including the National Museum of the U.S. Air Force - the oldest and largest military aircraft museum in the world.

What's not to like?  Dayton Metro is not dying.

Mike D'Arrigo · Answer

@Reeves Coggin I'm not an expert on Dayton but I do track several markets including Dayton. It wouldn't be my recommendation. Although it's very affordable and can probably cash flow decently short term, real estate wealth is built over the long haul. Dayton has a declining population, low labor participation rate, high poverty rate and low incomes. This comes right from the U.S. Census Bureau. I personally recommend markets with growing populations, growing jobs, and strong incomes. This offers better opportunity for appreciation and increased cash flow through steady rent increases. I just think that there are much better opportunities in the Midwest which is why we have focused on markets like Indianapolis and Kansas City and have done so for over 10 years.

Austin McClain · Answer

I like the Dayton market. It has good cash flow and is between two large/growing markets (Columbus and Cincinnati).

Its economy isn't based on one industry, so if one falls, the city won't. It has a good mix of manufacturing and government jobs, like the Wright-Patterson Air Force Base.

Ozzy Smith · Answer

I love Dayton.  I've been investing here full time now for about 7 years.  I think it's funny when someone asks if it is an "up and coming" market.  I've been getting excellent returns for years and actually everyone else is just now starting to figure it out

Mackaylee Beach · Answer

@Reeves Coggin Absolutely!  I started buying in Dayton about 5 years ago.  I was blown away by the multi family returns.  Just be aware of the taxes that will continue to creep up each year.  If you can provide an updated unit with great PM in place, you can't really loose in Dayton.

Steven Foster Wilson · Answer

I agree with @Austin McClain! We are seeing a lot more big time investors starting to buy more in Dayton as well. Ohio has great markets because our appreciation has been 8% higher then the US national average. Due to the high demand for affordable housing. Ohio is also a landlord friendly state which is very nice. I have had no problems with my multi-families and single families .

Mackaylee Beach · Answer

@Adrien Hebert  I can only speak to experience with Agora Realty Group!  I'm sure there are other great ones but Agora is the only I've worked with.

Gordon Starr · Answer

Dayton has been on a slow steady upswing for about a decade and now it is heating up. Thanks to those who are making that happen. Like these builders and investors who take abandoned houses and turn them into some awesome rental investment. Much of the city proper area is really shaping up!

Patrick Drury · Answer

@Reeves CogginIf you are looking for cash flow, Dayton would be a great market. I would recommend looking for a small multi-family like a 2-4 unit. Occupy one unit and rent the others to cover the mortgage or even supply you with cash flow depending on the deal. Feel free to reach out, and I can send over some lender referrals with great owner-occupant loan products.

Adrien Hebert · Answer

Account Closed Do you have any recommendations for great PMs in the Dayton area?

Dayton, Ohio Thoughts?

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