A vlog (episode 5) by Flip and Danny of Freedom Real Estate Group presenting six reasons to invest in Dayton, Ohio: (1) low purchase prices (single-family from ~ $75,000; duplexes ~ $120,000; fourplexes up to ~ $250,000), (2) cash flow focus with a 1% rent-to-price target (e.g., $750/mo on a $75k property) and claimed cap rates around 8–12%, (3) employment and downtown revitalization (employers cited: Amazon hubs, Kroger HQ, Kettering Health Network, Wright-Patterson AFB; Brookings Institute ranking cited; city growth claimed ~5% since 2011 vs Ohio ~2%), (4) landlord-friendly laws (security deposits allowed; three-day notice to vacate for unpaid rent leading to eviction), (5) Dayton–Cincinnati metro growth (described as a merging 'metroplex' that would rank ~18th if combined), and (6) recent appreciation (FHFA cited: Dayton +9.4% year-over-year vs US +7.8%). Tone: conversational and promotional.
Questions this video answers
January 13, 2021
Around $75,000
Around $120,000
Up to around $250,000
1% rent-to-purchase price ratio
Foreign. Hi, Flip and Danny here, co founders of the Freedom Real Estate Group family of companies.
And today is episode five of our vlog. You do that on just the last two videos. This is intended to be a day in the life of the Freedom Real Estate Group family of companies and its team members. Today we're actually in the war room. Well, we're still moving in, but it's a new place. We try to go somewhere new every single episode. But today we're going to be talking about six reasons of why you should invest in Dayton.
Well, we get asked all the time, why should I buy in Dayton, Ohio? Well, like Danny just said, we put together our top six reasons on why you should buy properties in Dayton, Ohio. Number one is simply our purchase price. Our single family properties start around the $75,000 area and they go up from there. Regarding our multifamily properties, our duplexes start right, right around the 120 and they go from there. And our fourplexes probably all the way up to around the $250,000 area.
Reason number two is cash flow. We're all about cash flow when it comes to rental properties in the Dayton area. We're always aiming for a 1% rent to purchase price ratio, which means if you're going to buy a $75,000 property, you're going to get $750 a month or more, which is giving you cap rates of around 8 to 12%. Now, one of the cash flow stability factors here in Dayton is the renter ratio, which here is generally between 40 and 50%.
Now, number three is employment, job growth and our downtown revitalization. First of all, Amazon has largely expanded in the Dayton area with hubs, lockers, logistics and warehouses all over the Dayton suburbs. We also have a Bed Bath and Beyond and Walmart fulfillment facility. Easy for me to say. We also have the the Kroger headquarters. We also have Kettery Health Network, which has almost 13,000 employees. And the Wright Pat Air Force base, which is one of the largest research air Force bases bases in the Air Force. And it employs almost 30,000 employees. And that's just to name a few. Now, the Brookings Institute has named Dayton as one of the top 11. It's actually number 11 out of the top 100 metro areas to have inclusive growth. Since 2011. The growth of just the Dayton city area is at 5% compared to the rest of Ohio, which is at 2%. Now, the Dayton, the downtown revitalization. Dayton has numerous warehouses in the downtown area that have been vacant and abandoned for years, if not decades. And they've gone in there the last five to seven years. And the top floors they've put in lofts and condos. And then on the bottom floors they put in retail stores, restaurants and microbreweries and has brought back a huge resurgence into the Dayton downtown area.
That's so cool. So number four, we're on number four, right? Number four reason Dayton, Ohio is great is because it's landlord friendly. That is super, super important. So not only can we collect security deposits to protect us from tenant damages, but also if the tenant doesn't pay their rent on time, we can post a three day notice to vacate and quickly thereafter post a notice for eviction.
Now, number five is the Dayton Cincinnati Metroplex, as I like to call it. Now, not too long ago, the area between these two cities was vast farmland and you could see for miles. Now the two cities are not only starting to grow together, they're merged together, they're starting to grow together very similar to that of the Dallas Fort Worth Metroplex. Now, if you were to combine these two cities, Dainetti, this city would be the 18th largest city in the United States, just behind San Diego.
Ding, natty.
Ding natty.
Number six, appreciation. So this isn't something we talk about a lot when we're talking about Dayton. In fact, when I'm talking to people about the Dayton area, I say it's about cash flow, cash flow, cash flow. If you get appreciation, that is the cherry on top. Well, that cherry is looking pretty good right now because the Federal Housing Finance Agency is just came out with a report that the Dayton area rose. Housing prices rose 9.4% in the last year. This is compared to the United States as a whole, that rose 7.8%. So for those of us not counting on appreciation, the appreciation is looking pretty good.
Well, that wraps up our short little video on the six reasons why you should buy the Dayton, Ohio area. Now, this is where I'm going to have a pamphlet in my hand that Kaitlin's going to Photoshop into my hand right here. So. And again, we've got this little pamphlet that we can email you directly from our headquarters here in Dayton, Ohio. So we hope you enjoyed our short video and we look forward to seeing you on the flip side. Bye. See what I did there?
Take five. Do I have any wispies this time? Because I can't see myself. Yep, Flip's got it though. Thank you. Anymore?
What about me? My collar. One collar's up.
Down. No, your collar is good. No wispies makeup, lights. We meant to bring a book together. We're so ridiculous. I'm sorry, Kaylin.
