Ohio isn’t often mentioned by real estate investors as one of the most lucrative states for house flipping.
But this Midwest underdog has a relatively low cost of living, a handful of major cities, and affordable property prices.
In this article, we’ll explore why you should consider the Ohio real estate market—and the best cities to flip houses.
Start your application with Park Place Finance.What’s the real estate market like in Ohio?
Ohio is known to have a lower cost of living and lower home prices compared to other states, backed by the following data:
- According to Redfin, Ohio is the No. 2 state with the lowest median home prices.
- Ohio is ranked No. 21 out of 52 in the Missouri Economic Research and Information Center’s Cost of Living Data Series.
- According to U.S. News, Ohio ranks 16th out of 50 in Cost of Living and Affordability.
Ohio’s real estate market has shown steady growth and consistent demand.
Its diverse economy is supported by manufacturing, healthcare, education, and finance industries.
As a Midwest state, Ohio also benefits from the migration of people from more expensive states to Midwest states that are more affordable and offer more space.
Why is Ohio attractive to house flippers?
Real estate investors are beginning to turn their attention to Ohio for several reasons, including the following.
Affordable property prices
According to the U.S. Census Bureau, the median sales price for new houses sold in June 2024 was $417,300. In comparison, the median home sale price in Ohio is $263,000.
Ohio also has a significant number of historic, distressed, or undervalued properties in certain areas that are prime candidates for flipping and selling for a profit.
In fact, the 2023 flipping gross profit in Ohio was $58,700—a 45.6% ROI.
Steady housing demand
Some of Ohio’s largest cities, including Columbus, Cleveland, and Cincinnati, are experiencing population growth driven by affordable living and job opportunities.
The surrounding areas also are benefitting from this growth.
Diverse economy
Ohio is home to various manufacturing industries, including automotive, aerospace, chemicals, and machinery.
It also contains some of the nation’s leading healthcare institutions, including Cleveland Clinic, considered one of the top hospitals in the world.
The healthcare industry attracts a highly skilled workforce to the state, contributing to population growth.
Other notable industries in the state include:
- Education
- Finance
- Technology
- Logistics
- Agriculture
- Tourism
Workers coming to Ohio for opportunities seek affordable housing, and fix-and-flip investors play a major role in providing it.
Range of investment opportunities
Ohio offers investors a little bit of everything, from large cities to smaller cities and suburban areas.
Urban areas can provide higher returns and faster sales, while suburban areas offer a more affordable entry point and steady demand.
Less competition
Ohio’s market is significantly less saturated compared to states like Florida or California.
However, as word gets out about Ohio’s opportunities, competition will grow, so if you see a property with potential, you’ll need to secure funding fast.
Strong ROI
Ohio investors generally see an excellent ROI due to lower purchase prices and relatively affordable renovation costs compared to other states.
Of course, it’s important to research areas where demand is high and prices are appreciating.
The 5 best cities for flipping houses in Ohio
The best Ohio cities for house flipping mix affordability with strong demand.
Let’s take a look at the five best cities waiting for your next investment.
1. Cleveland
Cleveland, home of the Cleveland Clinic, attracts a stream of healthcare professionals and visitors who serve as the city’s main drivers of the economy.
The city has also succeeded with advanced manufacturing, including biomedical devices and aerospace.
Cleveland appeals to many buyers, including young professionals and first-time homebuyers. Neighborhoods near downtown are the key areas for fix-and-flip investments.
- Median home sale price: $125,000
- Average rent: $1,227 per month
2. Columbus
Columbus is Ohio’s state capital and largest city.
Education, healthcare, and technology are the city’s biggest industries. The best house-flipping opportunities are in suburban areas and up-and-coming neighborhoods.
- Median home sale price: $291,500
- Average rent: $1,107 per month
3. Cincinnati
Cincinnati is your city if you’re interested in renovating, restoring, or updating historic homes.
The area has plentiful flipping opportunities in older neighborhoods undergoing revitalization.
- Median home sale price: $271,000
- Average rent: $1,056 per month
4. Dayton
Dayton’s real estate market is much more affordable than those in larger cities, yet it still offers steady housing demand thanks to its aerospace and defense industries.
After all, Dayton is home to the Wright brothers and is considered the “Birthplace of Aviation.”
The low barrier to entry is perfect for flippers on a budget seeking solid returns.
- Median home sale price: $145,000
- Average rent: $922 per month
5. Toledo
Toledo is another affordable city with demand cemented by its manufacturing, healthcare, and education industries.
The city also has several neighborhoods with historic homes waiting to be renovated and sold for significant profit.
- Median home sale price: $139,000
- Average rent: $766 per month
Tips for flipping houses in Ohio
Finding the right properties is the most difficult part of housing flipping in any state.
Here are our best tips for finding the right opportunities and making the most of your investment:
- Do your research: Focus on neighborhoods with the greatest potential and monitor local market conditions.
- Make a solid budget: Your budget must be realistic and something you can stick to, including all potential costs and savings in an emergency.
- Prioritize your renovations: Focus on the highest-value upgrades and the absolute necessities, like kitchens, bathrooms, flooring, and fresh paint.
- Choose the best contractors: Contractor quality can make or break your investment, so choose wisely and get recommendations.
- Build a support network: Talk to other investors, find the best local real estate agents, and work closely with an experienced hard money lender.
Success is within reach—no matter where you’re investing.
Park Place Finance: Your trusted hard money lender
At Park Place Finance, we love helping flippers of all experience levels reach their investment goals.
We can fund various residential properties nationwide with fast capital at competitive rates.