Which Ohio City is good for Cash flow relative to Quality

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Which Ohio City is good for Cash flow relative to Quality

Toks Akindele
Member since 2019 · 25 posts · 18 votes

I am an OOS investor looking at Ohio (for next year) and I have narrowed my opinions to Cincinnati, Dayton and Toledo. If there is another City I should have on my list, let me know. I am interested in properties in the $30K-$70K range for SF and less than $375K for MF. What I am looking for is Cash Flowing properties and if appreciation happens, then that is a bonus (my focus is good cash flow properties). Here are my questions:

1)Which of these 3 cities will cash flow the best relative to Purchase price of property

2)I was told that neighborhood quality in Cincinnati changes block by block which will require more local knowledge than I have...which of these cities has the best broad range/spread of quality neighborhoods (interested in B and C type properties)

3)If you know good Realtors in these cities who are OOS investor friendly, please provide info

4)If you know good Property Managers, please provide info

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Lee RipmaPro Member
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
5y

@Fawaz Hasnain

So I think you can be successful in any market in RE with the right strategy. My personal strategy for rentals is very specific - buy value-add MF below replacement cost (what it costs for new construction) in areas with growing population in MSAs with populations greater than 150k within 50 miles of a major airport. Pretty darn specific right? So the markets you mentioned don't work for MY strategy. Doesn't mean they don't work for YOUR strategy. Indianapolis just doesn't have the growth. I really want to buy in areas that are growing. Lots of people want cash flow and think cash flow comes first. Well cash flow isn't much of a return driver so I'm more focused on forcing appreciation in growing areas. If you listen to my podcast I talk about how cash flow is more of a hedge and isn't much of contributor to overall ROI. Different strokes for different folks but watch out for the cash flow kool-aid!

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  • Kendra Lane
    Rental Property Investor · Honolulu, HI · Member since 2016 · 18 posts · 4 votes
    4y
    Quote from @Alex Heidenreich:

    I'm currently investing in Columbus, because I live here, but it does seem like there is a decent amount of competition. If I start having trouble finding deals here, I plan to start buying in Cincinnati. Both metros currently have very hot job markets. 

    How is your investing in Columbus going these days? Still a strong market of renters?

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Kendra Lane:
    Quote from @Alex Heidenreich:

    I'm currently investing in Columbus, because I live here, but it does seem like there is a decent amount of competition. If I start having trouble finding deals here, I plan to start buying in Cincinnati. Both metros currently have very hot job markets. 

    How is your investing in Columbus going these days? Still a strong market of renters?


     Yes Columbus, Ohio is a very strong market for renters.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    All of the cities you had mentioned are overall really good cash flow cities in Ohio as well as Cleveland. Not as much growth as Cincinnati and Columbus but still some good opportunity. @Toks Akindele

    [email protected]614-963-3340
    1Reply
  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    @Kendra Lane Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs.

    https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

    Here are a few more recent investments https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

    https://news.wosu.org/news/2022-02-08/rumpke-to-build-50-million-recycling-facility-in-columbu

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  • Clay Boykin
    Real Estate Agent · Columbus, OH · Member since 2021 · 98 posts · 101 votes
    4y

    @Toks Akindele The appreciation in these cities (Dayton & Toledo in particular) are not on the rise as fast as Columbus is. Cincinnati is growing but I don't see rents following as much as they are in Columbus. As long as you scale your portfolio and cash out on value add deals then you should have a positive average ($200-300) cash flow. 

    As far as property managers, I would recommend Beacon Property Management. They are mostly based in Columbus as far as I know but they might be in other Ohio markets as well. Feel free to reach out to me if you have any questions about the Columbus market. Either way, Happy Investing!

    1Reply
  • Sarah Bojorquez
    Real Estate Agent · Cincinnati OH, USA · Member since 2017 · 79 posts · 61 votes
    4y

    Cincinnati! Especially if we get the world cup in '26! In all seriousness, the city has put a LOT of money and planning into attracting new business and making the city much more livable.  I am a little biased since I live here and love it here, but I also get a great cashflow and my properties have appreciated nicely over the past few years.  You do need to work with someone who knows the area here well though because as you said, you can go from very rough neighborhood to bread and butter in a block, but most realtors here will be able to point you in the right direction.  if you have any questions about specific areas feel free to reach out.

    0Reply
  • Bon Osonwanne
    Investor · Scottsdale, AZ · Member since 2016 · 46 posts · 12 votes
    2y

    I invested in Cleveland, and saw appreciation within a year. Now focusing on Dayton, then Toledo.

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    @Toks Akindele
    If you are looking for cash flow out of the three major markets in Ohio the cleveland market is a great place to start looking. It's landlord-friendly, in terms of price it has a lower barrier of entry and cash flow is more attainable here. 


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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Toks Akindele:

    I am an OOS investor looking at Ohio (for next year) and I have narrowed my opinions to Cincinnati, Dayton and Toledo. If there is another City I should have on my list, let me know. I am interested in properties in the $30K-$70K range for SF and less than $375K for MF. What I am looking for is Cash Flowing properties and if appreciation happens, then that is a bonus (my focus is good cash flow properties). Here are my questions:

    1)Which of these 3 cities will cash flow the best relative to Purchase price of property

    2)I was told that neighborhood quality in Cincinnati changes block by block which will require more local knowledge than I have...which of these cities has the best broad range/spread of quality neighborhoods (interested in B and C type properties)

    3)If you know good Realtors in these cities who are OOS investor friendly, please provide info

    4)If you know good Property Managers, please provide info

    Hi Toks, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
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