Best Dayton Neighborhoods for CashFlow and Rentability

[Michael Beall]

I'm looking for insight on the best neighborhoods for cash flow and rentability in the Dayton OH market.  I was born and raised there but left about 15 years ago.  I have my own ideas on attractive neighborhoods - close to UDayton, Wright State, Miami Valley Hospital, Wright Patt.  There are some neighborhoods with very affordably priced SFHs and even some MFHs, but I have no concept anymore for how in demand these neighborhoods are for rentals (thinking Belmont, Walnut Hills, Linden Heights, Hearthstone area, also Huber Heights, Fairborn).

Any comments from folks in the Dayton market would be most appreciated, thanks!

[Steven Leigh]

Originally posted by @Michael Beall:

Thanks Steven Leigh.  Are there any reputable property managers in the area to discuss further?  What about good sources for foreclosed/auction-pending homes?

Auctions are not worth your time as an investor. There are so many people bidding these days, and some are even buyers who want to fix them up and live in them. Prices go so high they are not really deals for investors.

Your best bet is to either do your own marketing, which is expensive and time-consuming, or get to know all of the wholesalers in town and let them bring actual investor deals to you. Most wholesalers like myself price their deals at about 70-75% of ARV all-in after repair costs, so that leaves a great margin for cash flow. You won't find deals like that on the MLS or at auctions.