Advice for income property in Dayton OH?

Question

Does anybody have any advice on Dayton Ohio? Especially the rental market, focusing on 2-4 unit income property. I'm looking at St. Anne's Hill, South Park and Huffman, but also perhaps a little further from downtown, including the Eastern Hills neighborhood.

Thank you!

David Schulwitz · Answer

I'm sure some Dayton people will chime in and provide great advice, but as an Air Force veteran, I can tell you the base there employs and brings in thousands of people every year, and with them being there for a short period of time and earning a decent salary, they make fantastic tenants. If you end up getting a property/properties there, see if they still have the webpage "AHRN" - From what I remember it was a website set up specifically to list rental properties for military folks living in the area.

Good luck!

Dave

Good luck!

Dave

Gordon Starr · Answer

Dayton proper has been mostly a cash flow investment for a long while now. The property was going so cheaply, that banks weren't doing mortgages (under 50k). Lately, though, the cheap stuff is getting snapped up really fast and rehabbed (or torn down). So, the equity build up is happening faster. All around town are these really well build brick quadruplex buildings with four one bedroom apartments. They often have a person's name carved on the front. These are very solid building stock and if made distinguished, they can rent very well. There are also quite a few nice duplexes in town, which for so long were an absolute steal. Now, they are going fast and are very popular with younger renters. Some of the areas you mention are older building stock like Huffman, South Park, Saint Anne's Hill and not as desirable in my view. Top of the hill land with a view is where the best buildings are and most likely where the next rejuvenation success story will be. Of the neighborhoods you mention, eastern hills would be my choice because it has a lot of smaller, well build residences, proximity to the base, and isn't so run down as say Huffman. You might also consider kettering or north riverdale/southern Shiloh for good building stock at low prices with potential equity buildup.

Jump in and make some solid investments in Dayton! Good luck,

Gordon

Chris Kirshbaum · Answer

Thanks Gordon! That's greatly appreciated!

Chris

Courtney Jones · Answer

I have a rental in Dayton zip 45405. I have been pleased with my tenants.  Good screening is the best advice I have.  I am looking to purchase a second one there next month.

Tommy Spijkers · Answer

Hi @Chris Kirshbaum,

Generally spoken the Dayton market is a good one for cashflow, but as in any market you can go wrong. I think the areas you are mentioning are for sure offering potential for good cash flow, but it will be important to know where in the areas your properties are. I personally feel there is a low inventory for 2-4 unit multi's, which has actually driven up the price of these units. For a good option you would have to be able to move quick, as there is some good competition.

If you have any specific questions feel free to send me a message!

Good luck,

Tommy

Gordon Starr · Answer

Hey, I noticed that @Courtney Jones and I are touting basically the same area in Zip 45405 which contains North Riverdale and Southern Shiloh neighborhoods. If you take a quick breeze through the listings and recent sales, I think you will see why we like this area. The homes are both beautiful and really well put together. Also, it has seen some significant stabilization/gentrification since the area bottomed out hard around 2012-2014. I think its driven by the new kind of landlord and tenants that are moving into the area. There are a lot of empty nesters and young people moving into parts of Dayton proper. Course, if your idea of neighborhood improvement is a better price on weed and some fresher looking hoes, there is a part of that area you will just love! lol. Otherwise you might want to steer clear of the area near pointview and Main st...

Darrin Carey · Answer

@Chris Kirshbaum Each of the submarkets you listed have strong and weak areas. All can be profitable, but they may or may not be a good fit for you based on your personal goals and objectives.

As @Courtney Jones said, screening is important. Since you are out of the area, getting a great property manager will be critical for you.

@Chris Seveney We have a local networking event once a month on the second Monday; here is a link to an upcoming one. Dayton Networking BP Post. Otherwise you can reach out to us directly.

Ozzy Smith · Answer

I personally live and invest in Dayton and wouldn’t want to invest anywhere else. If you want a local perspective drop me a line and I’d be happy to give you my two cents

Advice for income property in Dayton OH?

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