Cleveland vs Cincinatti vs Columbus re MFH

[Frederick Kuo]

Hi all. Californian here considering investing in multi family homes in Ohio. Trying to choose between these three cities based on my goals, just wanted to get some thoughts and suggestions from professionals and investors here. 

So I plan to start out smaller, perhaps with purchasing a duplex or triplex in the price range of $80,000 to $150,000. Obviously would like to make sure this is a property that can get decent long term tenants. Cap rates of 10% to 15% would be ideal. Much more concerned about having decent tenants however than getting the absolute highest cap rate. If all goes well, plan on purchasing more. 

Columbus seems to be the most economically vibrant city, however, the price point is higher. Open to any advice or suggestions. Thanks in advance.

[Jake Walroth]

A Cincinnatian’s perspective: 

Columbus and Cleveland are in Ohio..... Cincinnati is kind of it’s own thing/culture. The people and place is much closer to a Louisville or Nashville than Columbus or Cleveland. Cincinnati isn’t boringly flat.... we have hills..... and for not too much distance, our winters are typically much more hospitable than Cleveland’s. AND, we’ve now got 3 Major League sports teams with FC Cincy.... although some here refuse to acknowledge the Bengals as Major League. 

Cincinnati has many key "anchors" from a REI perspective- P&G, Kroger, GE Av, Western and Southern, The University of Cincinnati, UC Medical, etc. Economically, we are fairly diverse, not relying on any one thing too much, we've got manufacturing, some tech- Amazon World Transportation Hub, service and hospitality. The new soccer stadium is being built on the fringes of OTR and the West End- this area is blowing up and will continue so for the next 5 years as he stadium and team arrives in 2021.

Our city’s urban core was built for walking and many neighborhoods are being revitalized.... not just OTR which gets most of the pub. I’d say just in the city (counting Northern Kentucky), there are at least 8-10 B-A neighborhoods choc-full of breweries, coffee shops, etc- 15 years ago there were probably only 2-4. 

So if you’re trying to buy in the “path of progress”, there are quite a few options for you here in cincy as an investor.... 

as an investor here in cincinnati, I’d like as little competition as possible, so please park your money in Cleveland and or Columbus lol. 

Cheers, 

Jake