Best area in Cincinnati for 1st time investment rental property? (Norwood: section 8, apartments)

[TeacherinTN]

I've got $30K and would like to buy my first rental property to generate income and have good appreciation potential.

What area would be best?

Obviously somewhere near the university would be good first bet but tenant turnover would be high. Where is the sweet spot on price/location?

I live in Miami Township and would property manage it myself so don't want something to far away like the West side.

[SalamanderSmile]

this is an interesting question. I personally don't understand why Clifton rental properties are so cheap other than the less-than-safe perception of being that far off-campus when there are now brand-new-mcdormy options in what used to be Corryville.

The problem here in general is that rent is just so cheap, you really have to buy at low to make it worth the bother. You have to put down 20% for an investment property so you are wise to limit yourself to under $100k price point.

Norwood around Xavier, the weird part of Evanston that is right behind Obryonville (only a couple of blocks but hella undervalued and ghettoey at the moment), West Clifton ave. at the bottom where it hits Vine, Covington in general, the bottom part of McMicken/top of Elm, the numbered streets in Oakley, misc. Clifton closer to the top of the hill and east.

You could also take a look at what the big project is going to be in Avondale and role the dice there.

[blickcd]

I know somebody that owns a number of rentals in Clifton. At one time it was a pretty good side gig, but the with all the renovations that have been done around UC, new apartments, etc, they have had a tough time finding tenants. One quirk about a rental in Clifton is that if you don't find a tenant before the school year starts, that unit will likely stay vacant for many months.


IMO one of the undervalued areas might be Madisonville. Sitting right there between Indian Hill and the now trendy Oakley area, I think it is only a matter of time before someone realizes there is an isolated pocket of affordable properties surrounded by nice neighborhoods and the place gets overrun by house flippers and rehabbers.

[TeacherinTN]

if it would be a good investment, I'd prefer a nicer 3 bedroom single family home that a stable family could rent. Less turnover and possibly better tenants. Maybe something in the suburbs in a good school district.

[mimi in cinci]

If you have $30,000 my suggestion would be Madisonville, Madison Place, Fairfax, Norwood, Deer Park or possibly Pleasant Ridge. Don't discount 2 families.

[SalamanderSmile]

I just do not think that rents can support the investment of your entire $100k in one unit. A single three bedroom house in Madison place may rent for $900 on the high side. While a two family for the same money would rent for $400 or so more a month depending on the size of the units. Additionally when you are renting to families you may find that you need to take section 8 vouchers to be competitive (idk about this in Cincinnati my experience was in Boston) which puts additional rules about amenities/quality in place that may be burdensome to a landlord. In Boston section 8 approved housing had to have a disposal and be deleaded and have lights in all of the closets and things that apartments may not generally have. The upside was that your rent was paid on time every month because it came from the government.

The best schools for the least money for a SF rental are in Fairfax. I cannot comment on rents there however. I think a two family in Madison Place would be a good investment as well. PR is fine but where the two families can be found waffles between being a "good" street and a "bad" street frequently.

[Misfit Toy]

With it being your first rental property, I'd say look close to home in old Milford or downtown Loveland. I'm not sure how much the smaller older houses are going for in those places, but I'm sure you could charge a healthy rent without going as high as those outrageous rents at the newer apartments complexes in each place.


Otherwise, the posters above suggested places I would have suggested too, namely Deer Park and Madisonville. The latter may be kind of risky right now, but so was Oakley about 25 years ago.

[Sarah Perry]

I'm a failed landlord, so please take anything I say in that context. I did, however, learn some things in the process. I would avoid renting to students. I think the neighborhoods Mimi mentioned sound like good bets. Have you figured out how much you're planning to borrow, and what the interest rate would be? I kind of think you'd need to know what you have to spend on purchase of a property total, then you could see what's available in neighborhoods convenient to you. Good you are thinking about location vis-à-vis maintenance, etc. That was one huge mistake I made. In an older, less expensive property you may be there a LOT fixing stuff.