A City with More to Offer than Its Skyline
by Jason Engleman, Freaky Fast Home Buyers & Investments
C incinnati has amazing downtown views, but when I look at Cincy, I see a city full of opportunities waiting for smart investors to capitalize in the real estate mar- ket. In 2020, our company, Freaky Fast Home Buyers and Investments began purchasing homes in the Cincinnati area. When evaluating markets to invest in I look for key indicators that not only show growth, but also serve as circuit breakers for a possible downturn. Here are four reasons why I started investing capital in Cincinnati. ECONOMY Cincinnati currently ranks as the 28th largest econ- omy in the country and the fastest- growing economy in the Midwest according to Cincinnati.com. The city boasts ten Fortune 500 companies and 17 Fortune 1000 companies. With the likes of Proctor & Gamble, Ama- zon, Kroger, Gillette and Macy’s, the job market in Cincy is booming. Prior to the pandemic, unemployment was lower than it had been in decades and wages rising, especially for highly skilled workers. The Cincinnati MSA produced over $141 billion in GDP in 2018, up from $135 billion in 2017. With The University of Cincinnati, four professional sports teams and a lively community of restaurants and bars, there is also a constant flurry of tourist activity.
available for under $100k. The economic growth Cin- cinnati is seeing has put quality homes in high demand — and at higher rent amounts! In fact, over the last five years average rents have grown by about 30 percent according to Zillow’s Rent Index. Freaky Fast regularly buys properties for $70-80k, renovates them to an ARV of $100-120k and gets $1,200 or more in rent—that’s a great and reliable return. APPRECIATION The average home price in Cincinnati is around at $190k (depending on source), which is an 18.8 percent increase since 2019. The average price per sq ft on single-family properties is estimated at $118, a nearly 16 percent increase since last year. The appreciation of these properties isn’t slowing down and is even showing signs of increasing! DEMAND With the 3.5 percent population increase over the last ten years, rising wages, increased tourism and economic growth, the demand for affordable, yet modernized hous- ing is increasing every day. Cincinnati is currently home to over 2.1 million residents in the greater metropolitan area. This demand for great rental homes combined with the abundance of low-cost, pre-rehab properties available has created a dream scenario for the savvy real estate investor. •
CASHFLOW An extraordinary abundance of homes in Cincy are
INVESTOR REV I EW : : 3
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