While Will and I were discussing whether he had what it takes to buy and sell houses as a business, he asked why, and how, I got into real estate investing in Cincinnati. Answering both of those questions was a piece of cake. First, I spent far too long pursuing a career I despised. When I decided I couldn’t take it anymore and that leaving my corporate job to start a business was the only option that would satisfy my entrepreneurial spirit, an opportunity to invest in real estate presented itself. Second, I had a kind of mentor who got me through the first year, which was critical in reducing my learning curve. The timing for entering Cincinnati’s market as an investor seemed to be right, too. So, as far as I was concerned, there was no reason to say ‘No.’ And, I told Will that he had every reason to say ‘Yes’ as well.
Saying ‘Yes’ to Investing in Cincinnati Real Estate
Luckily for Will, the conditions here in Cincinnati are favorable for new investors entering the market. They’re also pretty good for old hats, like me, who want to try on a different city for size. If either of these scenarios sound like you, let’s take a look at the reasons why you, too, should take the opportunity to invest in real estate here. Then, we can talk about how.
- High employment. Like many major metropolitan areas around the country, Cincinnati’s employment rate has vastly improved since the housing crash and has remained relatively stable since. It stood at around a healthy 4% at the beginning of this year, according to the Bureau of Labor Statistics. Having corporate giants such as Procter & Gamble, Kroger, and Macy’s headquartered in Cincinnati probably helps. This benefits your investment business because people with good-paying jobs in reliable industries tend to buy houses. And, you’ll want to have a rehabbed investment property for sale when they do.
- Low cost of living. It’s more affordable to live in Cincinnati than many other cities in the region and, for the average American family, that counts for a lot. Groceries are cheaper in Cincinnati, as are transportation and healthcare costs. It’s even less expensive to live here than Pittsburgh to the northeast and Nashville to the southwest. When money goes further, consumer confidence moves upward—including when it comes time to buy a home. So, you can feel confident that when it’s time to sell your investment property, there’s likely to be a community of home shoppers who can buy it.
- Stable Population. A high employment rate and low cost of living can each contribute to the stabilization of a population. And, since Cincinnati has both, the positive impact on residents—and on your returns—can’t be overstated. A stable population brings a solid tax base and a better maintained local infrastructure. But, Cincinnati isn’t just stable, it’s growing. This promotes safety and helps to preserve, even raise, property values—characteristics that are attractive to home buyers.
- Great Housing Market. Historically, Cincinnati’s housing market hasn’t been seen as one strong enough to really support building a real estate investment business. But, that view shifted last year when home prices started to surge. Multiple news outlets took notice, reporting that Cincinnati’s housing market was becoming one of the fastest growing markets in the country. A stable economy and the relative affordability of housing have likely helped to push demand for homeownership in the area higher, but it doesn’t hurt that inventory is fairly low, too. So, in order to capitalize on this growth while the housing market is still hot, the importance of finding off-market properties to buy, renovate, and resell should be at the forefront of your mind.
- Good Potential for Strong Return. Now you understand that Cincinnati is attractive to home buyers, so the possibility of realizing good returns on your investment properties can be great—provided you’re able to buy low and sell high. Your best chance of doing that will be found in purchasing off-market properties in neighborhoods on the cusp of transition. Since housing prices are growing at 5.7% year-over-year in Cincinnati and local homeownership demand is on the rise, the city is likely to remain a seller’s market. If you’re an investor who buys, renovates, and sells homes, that’s a market you want to be in. As long as you’ve got a solid real estate investment valuation tool to help you correctly calculate your numbers so that you buy below market value, realizing a potentially strong ROI when you sell is well within your reach.
Now that you’re armed with the reasons why you should say ‘yes’ to entering Cincinnati’s real estate market in 2019, you might be wondering how. Or, more specifically, how you do it smartly. There are two things I like to recommend for significantly reducing your investing learning curve: make the effort to connect with other Cincinnati real estate investors and consider finding an experienced real estate investing mentor to work with. And, like I told Will, there is a way you can easily accomplish both.
How to Enter the Cincinnati Real Estate Market Smartly
When I entered Cincinnati’s real estate market as a professional real estate investor, the timing was right—personally and professionally. And, I did pretty well for myself right out of the gate. But, I can’t take all the credit. The support I received from my fellow investors and my mentor were critical to my making smart decisions in my newfound career. By becoming an independently owned and operated HomeVestors® franchisee, I got access to both the moment I joined the team. In fact, every new HomeVestors® franchisee gets connected to this network, as well as their own seasoned Development Agent, to cheer them on when things are easy and guide them through when times are tough. That kind of support takes some of the load off of going it alone.
Be smart about how you invest in Cincinnati real estate. Call HomeVestors to discuss how you can get the support you need to help you to succeed today.
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