Out of State Real Estate Investing in Dayton Ohio

[Moe Daoud]

Hello Fellow Investors! I was a Realtor in Philadelphia, Pa so I am aware of the Real Estate Market here and how the prices of Real Estate are absolutely ridiculous.  I have a couple of Questions about doing out of state Real Estate investing out of state in Dayton Ohio. I live in Philadelphia PA, and investment properties prices are through the roof. If you were to buy a duplex in a C class area it would run you no less than 165,000$, thats if you got lucky in Philadelphia. So if you wouldn’t mind, I would really appreciate it if anyone can answer a few questions I have. 

So I want to know from experianced out of state investors, how hard is it to own property out of state, and how good is the property management company you use, when it comes down to it being a headache, after all you are paying them every month so that you don’t have that headache. 

Also for investors who invest in the Dayton Ohio Area, what neighborhoods are good to invest in, because I've heard that there are some neighborhoods that I should stay away from. Also what are the ROI in the properties you own? And the average price of the Property you own?

I am looking to purchase my First Investment property in the next 12- 16 months, so I am trying to get as much information as possible, so that I can determine of I should buy Real Estate in The Dayton area/out of state or not. 

THANK YOU IN ADVANCE! 

[Ryan Provost]

Hi Moe,

Thank you for interest in our area. Like any city, Dayton has nice areas and not so nice areas. Here are my own considerations for investing in the area:

- Wright-Patterson Air Force Base is the biggest employer not only in the area, but the entire state (or so I'm told). I even work there for my 9-5. Approximately 20,000 of the 30,000+ there are government civilians, most of which are either Dayton natives or plan on staying here long term. What does this mean for investors? Stable employment, good salaries, and not much risk of losing employees due to layoffs or relocation.

- While the Air Force is not the only employer, other large companies in the area offer no guarantees. A couple of the largest employers in the area have left Dayton in the last 10 years or less, which has not helped with growth.

- Dayton does not see a lot of rent or property value fluctuation. Just steady, slow appreciation over the long term. I doubt we'll see west coast property value swings though.

- I personally avoid the area directly west of I-75/the Miami River. You can find extremely cheap properties (less than $20k) in some of those areas and with good reason in my opinion. I have heard of out of state investors buying these properties only to sell them once they realize that it's a D neighborhood. There are good people in all neighborhoods, but if investing out of state you'll set yourself up for a very high chance of having tenant issues.

- South of the city is generally good especially right around I-675. Beavercreek, Yellow Springs, Bellbrook, Centerville, Kettering, Oakwood, Springboro, all are B or A areas. My preference is finding properties here because very high ranked school districts drive demand in Dayton.

- I can't speak too much about the north city of the city demand-wise. It seems hit or miss by neighborhood.

- Dayton is currently a nation-leading city in the heroin/fentanyl epidemic. Because of this, I would suggest putting systems in place to vet possible addicts/traffickers.

Let me know if you have any other questions.

- Ryan