How to Start Investing in Real Estate in Ohio

Real estate investing is the perfect way to generate passive income, build wealth, and diversify your investment portfolio. But how can you ensure that your fix and flip won’t flop or that your commercial real estate investment won’t crash? One way to improve your chances of earning a profit is by learning as much as possible about the Ohio market and lowering costs. Wondering how to start investing in real estate? Consider first earning your real estate license.

Key Takeaways:

• Ohio offers strong opportunities for real estate investors due to its steady population growth, diverse economy, and affordable housing market. Cities like Columbus, Cleveland, and Cincinnati stand out with rising home values, rental demand, and significant growth potential.
• While not required, having a real estate license in Ohio provides benefits like access to the MLS, savings on commissions, and deeper market knowledge. This added expertise and access can improve an investor’s ability to find profitable opportunities and navigate the market effectively.
• Successful investing requires thorough market research, clear financial goals, and securing appropriate financing. New investors can benefit from educating themselves through courses, networking, and learning about different investment types, such as residential, commercial, or fix-and-flip properties.
• Connecting with local real estate investors and participating in Ohio-based investment events provide valuable insights and partnerships. Leveraging local market trends and opportunities, such as those in up-and-coming neighborhoods, can significantly enhance profitability.

Understanding the Ohio Real Estate Market

Market knowledge is critical for real estate investors. Most investors align themselves with a savvy real estate agent who is passionate about learning about current Ohio housing market trends.

Economic factors driving Ohio’s real estate opportunities

Several factors make Ohio an attractive state for real estate investments:

• Steady population growth: Columbus is among the fastest-growing metropolitan areas in the Midwest. The Columbus area has seen consistent population growth, with projections indicating it will reach nearly 3.15 million residents by 2050, marking an increase of approximately 726,000 people. The Cincinnati metro area has also experienced steady growth, with its population reaching 1,787,000 in 2024, a 0.68% increase from the previous year.
• Diverse economy: Ohio’s economy supports robust job markets from manufacturing to healthcare and technology.
• Affordable housing: Ohio ranked 14th in the nation for its housing affordability, according to the latest report by U.S. News and World Report – beating out nearby Pennsylvania and Michigan.

In short, the state of the state is strong, making it ripe for investment opportunities.

Overview of Ohio’s real estate trends

Ohio’s real estate market has been on the rise, with notable growth in areas such as Columbus, Cleveland, and Cincinnati. These cities have experienced increasing demand for housing due to population growth, job opportunities, and affordable property prices.

Whether you’re interested in rental properties or investing for long-term growth, Ohio offers a range of options. For example, the rental market is projected to remain robust, positioning 2025 as a promising year for investment. Investors should consider focusing on multi-family properties or affordable homes in high-demand locations such as Columbus and Cleveland, where rental returns are expected to be favorable. Additionally, exploring rural or suburban areas with lower entry costs could present excellent opportunities for long-term growth.

Best cities and regions in Ohio for real estate investment

Consider these cities as you look for the best real estate opportunity in Ohio.

• Columbus, OH, is a booming tech hub with a strong rental market and consistent property appreciation. The average home value is $241,872 (Zillow December 2024), up 3.5% YoY. It has a warm rental market with a medium rent of $1,495.
• Cleveland, OH, is known for affordable housing and high rental yields. The city attracts investors looking for long-term gains. The average home value in Cleveland is $109,341, up an impressive 9.3% YoY. (Zillow December 2024).
• Cincinnati, OH, has a growing economy, and its proximity to Kentucky and Indiana makes it a hotspot for multi-family properties. The average home value is $236,319 (Zillow December 2024), which is up 4.1% year over year.
• Dayton, Ohio, also has an affordable real estate market. The average home value is $148,347, up 6.8% year over year. Unlike other affordable cities in Ohio, Dayton has a warm rental market.

Are you excited by these affordable prices in rising home values? Here’s how to start investing in real estate.

Steps to Start Investing in Ohio Real Estate

Are you just getting started in real estate investing? Even though the Ohio real estate market is growing and demand for properties is increasing, choosing an investment opportunity takes skill and in-depth knowledge.

Here are some tips that will help you get started.

1. Educate yourself on real estate investing, real estate laws, taxes, and regulations

Begin with foundational knowledge by reading books, enrolling in courses, or seeking mentorship from experienced investors. Understanding market dynamics, financing, and property management will prepare you for success.

Consider enrolling in real estate school to learn the most accurate and current information about Ohio real estate laws and property management regulations. While you aren’t required to have a real estate license to invest, having one has many benefits.

Having a real estate license is great for investors for the following reasons:

• Gives you direct access to the MLS (Multiple Listing Service):
• Allows you to save on commissions
• Gives you enhanced knowledge of the market, laws, and regulations
• Provides networking opportunities within the industry

Learn the steps to getting your license. It’s more affordable and faster than you would think!

2. Set financial goals and create a budget

Define your investment objectives. Are you looking for long-term appreciation, rental income, or short-term profits through flipping?

Then, establish a budget, considering down payments, renovation costs, and potential returns.

Once you know how much you can afford to invest, you can begin your search for the perfect opportunity.

3. Secure financing

Explore various financing options, such as the following:

• Conventional loans through banks or credit unions
• Hard money loans for fix-and-flip projects
• Partnerships with other investors to pool resources
• Personal savings

Remember, there are risks for every investment. Be mindful of this if you borrow money.

Types of Real Estate Investments in Ohio

Here’s a quick reminder that there are many different types of real estate investment opportunities to consider in Ohio. You’ll learn about all types of transactions in real estate school because there’s only one entry-level real estate license in Ohio. You’ll learn about commercial real estate if you are considering investing in warehouses and property management if you want to invest in rentals.

Here are the most common real estate investment types to consider:

• Residential properties: Single-family homes and duplexes are ideal for beginners, offering steady rental income and lower upfront costs.
• Commercial properties: Retail, office spaces, or warehouses offer higher returns but require more significant investment.
• Fix-and-flip: Flipping properties is an excellent investment idea for avid do-it-yourselfers.
• Real Estate Investment Trusts (REITs): For a hands-off approach, consider REITs, which allow you to invest in real estate without owning physical properties.

Having a real estate license will give you access to insider information, such as which Columbus neighborhoods are up-and-coming or when a property with a motivated seller is about to be listed.

Success Tips for New Investors in Ohio

Investing in Ohio real estate can be highly lucrative. We would like to leave you with a few final thoughts about how to succeed with this investment strategy.

Network with local real estate investors

Join Ohio-based real estate investment groups or attend networking events. These connections can provide valuable insights, mentorship, and partnership opportunities.

Attend Ohio investment events

Events such as the Ohio Real Estate Investor Association (OREIA) Conference or local meetups in major cities offer opportunities to learn and grow your network.

Earn your Ohio real estate license

Consider obtaining a real estate license in Ohio to gain access to the Multiple Listing Service (MLS) for exclusive property listings, save money on commissions for your own transactions, and build credibility as an investor.

Hondros College will guide you through the entire process of earning your real estate license. We offer live or online real estate courses that will teach you everything you need to know to be a savvy real estate investor. And with a real estate license, you can help friends and family with their real estate needs and earn an additional income stream. Get started today!

Disclaimer: This report is informed by a blend of trusted perspectives, including insights from seasoned real estate instructors who serve as local experts and professionals deeply embedded in the Ohio housing market. Complementing their expertise are data and trends drawn from leading real estate publications, comprehensive market analyses, and reputable industry reports. Together, these sources provide a well-rounded depiction of the Ohio real estate landscape, ensuring that buyers, investors, and professionals alike have access to actionable and reliable information.