Market Overview

The Cincinnati MSA is home to the headquarters to 10 Fortune 500 companies including Procter and Gamble, Kroger, Federated Department Stores (Macy' s), Fifth Third Bank, and Western Southern Insurance. Cincinnati is primarily a financial center and its economy is not nearly as driven by manufacturing as other cities in the region. Its MSA is the 28th largest in the nation (2.2 million residents) and grew at a rate of 8.1% from 2000 2010. Cincinnati is home to two major sports teams, the Cincinnati Reds, the oldest franchise in Major League Baseball, and the Cincinnati Bengals of the National Football League. The University of Cincinnati, founded in 1819, is one of the 50 largest in the United States. Cincinnati is known for its historic architecture. The city has an outer-belt, Interstate 275 (which is the longest circle highway in the country) and a spur, Interstate 471, to Kentucky. It is also served by Interstate 71, Interstate 74, Interstate 75 and numerous U.S. highways: US 22, US 25, US 27, US 42, US 50, US 52, and US 127. This tri-state area and the counties that it encompasses are nationally recognized as being one of the nation’s finest places to live, work, play, and raise a family. The progressive, three-state region known as Greater Cincinnati offers world-class assets in arts and culture, amusements, tourism, sports, and recreation.

Investment Price Points

For single family homes it is best to stay below $100,000, which I know for many investors outside of Cincinnati that sounds impossible. You can find a home for less than $100,000 that is livable and even comfortable. The rents for that price range would be $800-$1,250. There are rentals that go for much more however, once you get past $1,250 rent range your purchase price goes up dramatically. If you are flipping, you can buy homes for as little as $20k. In very rough areas of course. You can buy homes in the $20-60k range in some areas. Entry level price point for a C and above area would be $60-110k. Mid level $110-150k, Upper Mid Level $150 and above. In my opinion the best flip opportunities are in the $80K- $125K price points. However: I like to concentrate on multi family investment opportunities, and believe that's the best way to enjoy, not only monthly cash flow, but better stability. The more units in any particular investment the more you can still produce income while dealing with vacancies. 2-4 unit investment, not needing immediate rehab are in the $60-$165,000 range. Any higher priced with this many units will be difficult to get a decent Net Operating Income, or Cap rate. 5-10 units can range from $125-$300,000 range. Again, there are some exceptions depending on number of bedrooms, etc.. 11-24 units and above, that are generally rentable, although some may need updating, can range from a low of $18,000 per unit to $35,000 per unit without having to fall into a unique category. There's some great opportunities, with good returns, on mixed use, retail and office properties in the area.