Real Estate investors from across the country are flocking towards properties in Ohio to build rental property portfolios. The Buckeye State is a current favorite of real estate investors due to many factors. These include a strong economy, affordable prices and stable rents! Easy Street Capital is proud to be a leading provider of loans for rental properties for real estate investors looking to build rental portfolios in Ohio!
Types of Loans for Investment Properties
When it comes to real estate investing in Ohio, there are many markets and types of investment property loans to choose from. For investors that like to get their hands dirty, rehabbing run down properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick profit or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are rent-ready and require no renovations. Move-in ready single-family homes and fully furnished short term rentals are great for cash flow and price appreciation. Most DSCR Loans are fixed rates for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
Where To Invest In Real Estate In Ohio
Ohio is a favorite market for real estate investment properties for many reasons. There are lots of varying markets that offer great potential for each type of real estate investor. Columbus is the largest city, capital and home to the flagship university. Cleveland is the second largest city and its ongoing revitalization efforts attract short term rental investors. Cincinnati is the third largest city in the state and fast-growing. Dayton is a sizable city with multiple distinguished universities. Finally, Yellow Springs, situated near many beautiful state parks, is a beloved vacation spot for nature enthusiasts.
Columbus
Columbus, the capital city of the state, stands as the largest city in Ohio, boasting a population of over 900,000 residents. The city’s thriving economy is diversified, encompassing sectors such as healthcare, technology, and finance. Columbus serves as the headquarters for prominent companies, including Cardinal Health, OCLC, and Worthington Industries, creating a robust job market and stability for rental property owners. It is also home to the Ohio State University, which has a student population of 61,000. Its vibrant business landscape and strong employment opportunities make Columbus an attractive destination for individuals seeking rental properties.
Columbus’s strong economy and growing population make it an attractive market for real estate investors. The city’s job growth and population growth create a steady demand for rental properties, with opportunities for long-term leases, medium-term rentals, and short-term rentals. Columbus is not only an economic powerhouse but also a cultural hub. The city boasts an underrated arts scene, with renowned institutions like the Columbus Museum of Art and the Ohio Theatre showcasing captivating exhibitions and performances.
Sports enthusiasts have much to cheer about in Columbus, as the city is home to the Ohio State Buckeyes, a collegiate sports powerhouse. The excitement of game days and the electric atmosphere surrounding Ohio Stadium draw in avid fans from near and far. This provides opportunities for short-term rentals to cater to the spirited crowds.
With its strong economy, vibrant arts and culture scene, sports fervor, and central location, Columbus presents an enticing landscape for real estate investors seeking to capitalize on the city’s dynamic growth and thriving rental market.
Cleveland
Cleveland is a bustling city located in the heart of the state. With a population of over 380,000 residents, it stands as one of the largest cities in Ohio. Cleveland has a diverse economy, with sectors such as healthcare, education, manufacturing, and professional services driving its growth.
The city’s waterfront area, known as the Cleveland Lakefront, offers beautiful views of Lake Erie and features attractions such as the Greater Cleveland Aquarium and the Cleveland Metroparks Zoo. The Cleveland Metroparks system, spanning over 23,000 acres, provides ample opportunities for outdoor recreation, including hiking, biking, and picnicking.
Real estate investors can find affordable investment opportunities in Cleveland, with a median home sales price of $385,000 as of February 2024, according to Redfin. This reflects an impressive 218.4% increase in home prices compared to last year. In addition, the average rent in Cleveland for all property types was $1,150 per month, as of April 2024, according to Zillow. This makes it an attractive market for rental properties, with potentially high cash-on-cash returns. Investors can take advantage of low-down payment options and utilize rental loans to generate strong cash flow and build long-term wealth in the real estate market.
Cincinnati
Cincinnati is a thriving city located in the southwestern part of the state. According to the US Census Bureau, the population of Cincinnati is over 309,000. Cincinnati boasts a diverse economy, with industries such as healthcare, education, finance, and manufacturing driving its growth. The city’s location along the scenic Ohio River provides opportunities for outdoor recreation, including boating and cycling.
Cincinnati is often hailed as the “Queen City” due to its prominent status and rich history. Real estate investors in Cincinnati can tap into a thriving market that caters to both short-term and long-term rentals. The city’s cultural calendar, featuring events such as the Cincinnati Music Festival and the Taste of Cincinnati, draws in visitors. According to Nerdwallet, as of March 2024, Cincinatti is showing 3.6% year-over-year rent growth, tops in the nation! This means lucrative returns for rental property owners. This creates consistent demand for temporary accommodations.
Cincinnati’s reputation as the birthplace of professional baseball and its passionate sports culture add to its appeal as a destination for sports enthusiasts. Cincinnati Reds baseball games and Cincinnati Bengals football games draw fans seeking short-term rentals on game days.
Cincinnati’s distinct neighborhoods, such as Over-the-Rhine and Hyde Park, showcase unique characteristics, with charming shops, eclectic eateries, and a lively nightlife scene. The city’s commitment to revitalization and preservation has resulted in beautifully restored historic buildings and architectural gems that add to its allure. With its diverse economy and scenic riverfront, Cincinnati offers a dynamic environment for real estate investors seeking to tap into its potential.
Dayton
Dayton is a rapidly growing city located in the central part of the state, with a population of over 137,000. The city’s economy is diversified, with significant contributions from healthcare, education, and manufacturing sectors. Real estate investors can find affordable investment opportunities in Dayton. The median sales price for a single-family home at $115,000 as of February 2024, according to Redfin. With relatively cheap housing and a population with strong incomes, Dayton is a strong market for long-term rental properties.
Furthermore, Dayton is also an excellent market for real estate investors specializing in niche strategies, such as short-term rentals or student housing. The city is home to several educational institutions, including the University of Dayton and Wright State University, attracting a significant student population. The University of Dayton alone has over 10,000 undergraduate students enrolled, providing a steady demand for rental properties near campus.
Dayton is also home to several cultural attractions that make it an appealing market for real estate investors. The city boasts the Dayton Art Institute, a renowned museum showcasing a diverse collection of artworks and exhibits. Additionally, the Victoria Theatre and the Schuster Center offer a thriving performing arts scene, with a variety of theater productions throughout the year.
With its rich cultural offerings, thriving sports scene, and a calendar full of exciting events, Dayton presents an enticing market for real estate investors. By capitalizing on the city’s attractions and catering to the needs of visitors, investors can tap into a diverse rental market and potentially achieve attractive returns on their investments.
Yellow Springs
Yellow Springs is a charming village nestled in a picturesque setting surrounded by nature. The village’s unique blend of natural beauty, historic architecture, make it a sought-after destination for visitors. The Glen Helen Nature Preserve, with its beautiful trails, offers outdoor enthusiasts the perfect opportunity to immerse themselves in nature. Investors can tap into the demand for short-term rentals, offering guests a memorable stay in this picturesque setting. The village’s rich cultural scene, thriving arts community, and abundance of outdoor recreational activities make it an attractive destination for travelers seeking a blend of relaxation and exploration.
Yellow Springs is renowned for its thriving arts and cultural scene. The village is home to various galleries, studios, and theaters that showcase the works of local artists and performers. Visitors can explore the Yellow Springs Arts Council Gallery, attend live music events at the Yellow Cab Tavern, or catch a show at the historic Little Art Theatre. This draws in tourists from across the region and provides a robust market for short-term rentals.
AirDNA, the leading data provider for investors in short-term rentals, reflects the robust rental demand for short stays in the city. Investors can expect monthly revenue of nearly $2,000. Yellow Springs presents an exceptional opportunity for investors seeking to expand their portfolios with vacation rental properties, targeting nature enthusiasts in the Midwest.
Investors utilizing innovative financing options, such as DSCR loans from a forward-thinking lender like Easy Street Capital, can unlock the potential for substantial cash flow in Yellow Springs. By leveraging the insights provided by platforms like AirDNA to project rental income, investors can make informed decisions and maximize their returns.
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Ready to invest in real estate in Ohio? Easy Street Capital is Ohio’s best provider of investment property loans for both hard money rehabs and long-term rental properties.
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