How To Flip Houses In Ohio

How To Flip Houses In Ohio: Step-By-Step Home Renovation Guide

flipping houses real estate investing strategies real estate markets (states) Jun 12, 2024

According to ATTOM Data Solutions’ latest Home Flipping Report, rehabbers across the country managed to average a 25% return on investment (ROI) as recently as the end of 2022, or a gross-flipping profit of about $62,000 per deal. Perhaps even more importantly, few states award investors the same opportunity to realize flipping profits like Ohio.

The Buckeye State combines the lucrative potential of rehabbing with the one thing investors need to capitalize on more opportunities: a relatively high foreclosure rate.

If you want to see what the housing market has in store for the real estate investing community in 2023, there’s no better time to learn how to flip houses in Ohio.

This guide will teach you everything you need to know, including:

Ready to take your house-flipping skills to the next level? Enroll in Real Estate Skills' free training program today! Our expert guidance will help you implement the information you've learned here and capitalize on the opportunities in the Ohio real estate market. Don't miss out—start your journey to successful house flipping now!

What Is Flipping Houses?

House flipping, otherwise known as rehabbing, is one of today’s most popular investment strategies in the real estate sector.

Not surprisingly, house flipping involves buying a property below its market value (preferably in need of repairs or renovations), making the necessary improvements, and selling (flipping) the updated asset to a buyer for potential profits.

Ohio House Flipping Statistics

House flipping has already proven to be a lucrative investment strategy in every state, and Ohio is no exception. That said, Ohio real estate investors may have an advantage over their counterparts in most other states. Ohio’s relatively high distribution of foreclosures presents local real estate investors with more opportunities to capitalize on.

According to ATTOM Data Solutions’ Year-End 2022 U.S. Foreclosure Market Report, Ohio had the fifth-highest number of foreclosure filings throughout 2022. Trailing only California, Texas, Florida, and Illinois, The Buckeye State saw the foreclosure process begin on 13,469 properties. Despite having the fifth-highest foreclosure filings, Ohio had the fourth-highest foreclosure rate.

Today, foreclosure filings are improving, but the state still has a high distribution of distressed homes. According to SoFi, Ohio’s 3,167 foreclosure filings in March were enough to give it the ninth-highest foreclosure rate in the country.

Here are dependable housing indicators if you're learning how to flip houses in Ohio (data provided by the U.S. Census Bureau, and RedFin):

  • Population: 11,799,448
  • Employment Rate: 60.6%
  • Median Household Income: $65,720
  • Median Sale Price: $259,500 (+7.6% Year-Over-Year)
  • Number Of Homes Sold: 12,353 (+3.3% Year-Over-Year)
  • Median Days On Market: 31 (+8 Year-Over-Year)
  • Number Of Homes For Sale: 35,975 (+11.5% Year-Over-Year)
  • Number Of Newly Listed Homes: 14,835 (+3.5% Year-Over-Year)
  • Months Of Supply: 2 (+0 Year-Over-Year)
  • Homes Sold Above List Price: 42.2% (-3.3 Points Year-Over-Year)
  • Homes With Price Drops: 24.7% (+3.9 Points Year-Over-Year)
  • Foreclosure Rate: 0.031% (1 Out Of 3,167)

*All Ohio housing market statistics are as of Q2 2024

Ohio Statistics

How To Flip Houses In Ohio (7 Steps)

The Ohio real estate market’s high distribution of foreclosures presents plenty of opportunities for investors. As a result, there may be no better time to learn how to flip houses in Ohio than now. To fast-track your education, try following the seven steps outlined below:

  1. Find A House-Flipping Mentor
  2. Research The Ohio Housing Market
  3. Find & Analyze Distressed Properties In Ohio
  4. Raise Capital To Fund The Deal
  5. Close On The House
  6. Renovate The Property
  7. Resell The House

Find a House-Flipping Mentor In Ohio

Find A House Flipping Mentor

While not a requirement, investors learning how to flip houses in Ohio should try to find a mentor. Working alongside someone who knows what they are doing, or even just learning from an industry veteran, can significantly lower the barrier to entry.

With a house-flipping mentor on your side, you may be able to simultaneously:

  •  Learn from their experience
  •  Build out your network
  •  Gain confidence
  •  Mitigate risk
  •  Optimize efficiency
  •  Save time and money

Research the Ohio Housing Market

Research The Ohio Housing Market

In addition to finding a mentor, aspiring real estate investors in Ohio should take every opportunity they have to learn as much as they can about the local market and all of its indicators.

To get you started, here’s a list of some trusted resources to research the Ohio housing market:

Find And Analyze Distressed Properties In Ohio

Find And Analyze Distressed Properties In Ohio

New investors, and those learning how to flip houses in Ohio, should use the 70% rule to start analyzing their fixer-upper. While far from perfect, the 70% rule rewards new investors with a rough approximation of how much they can spend on a home and still make money.

To use the 70% rule, you’ll need at least two variables: the home’s after-repair value (ARV) and how much money you expect to spend on renovations (materials and labor). The ARV is the estimated value of the home after it is updated. The easiest way to calculate the ARV is to check nearby “comps.” In other words, find out how much similar models have sold for in the last few months. The rehab budget, on the other hand, will require a scope of work detailing all the improvements that need to take place.

Once you have those two variables, take the ARV, multiply it by .70 (or 70%), and subtract the amount you budget for repairs. The resulting number is the maximum allowable offer (MAO), or how much you can spend on the home and still make a profit.

Read Also: Estimating Rehab Costs: (Ultimate) Investor's Guide

Raise Capital To Fund The Deal In Ohio

Raise Capital To Fund The Deal

Anyone learning how to flip houses in Ohio will realize they don’t need to use their own money. Instead, plenty of other investors are ready and willing to invest their capital in flippers — as long as they get a return on their investment. That said, here are some of the most common ways to raise money for a flip:

Close on the house in Ohio

Close On The House

Once funds are secured, it’s time to make an offer and sign a purchase and sale agreement. The agreement is a binding contract that sets the terms of the impending deal, including:

  • Who are the buyer and seller are
  • The investment property details
  • The purchase price
  • Borrower funding
  • Down payment
  • Who pays closing costs
  • Whether or not a title search is necessary
  • Commissions for real estate professionals
  • Contingencies

As an escrow state, an escrow company will step in once the agreement is signed. The third-party escrow company is responsible for overseeing the process. In doing so, the escrow company will order a title search, confirm the home price, request an inspection, have the appropriate documents signed, and collect funds.

The escrow company will make sure the terms are met and complied with. If each side lives up to its end of the bargain, the escrow company will distribute the funds and keys accordingly. The closing documents will be sent to the county Recorder’s Office and serve as the official title record.

Renovate the property in Ohio

Renovate The Property

House flippers should have already created a scope of work detailing the necessary improvements. Initially, the scope of work compliments the deal analysis when determining the maximum allowable offer. At this stage of the process, however, the scope of work is more of a step-by-step blueprint to follow. Use the scope of work and research nearby comps to improve the house and get it ready to sell.

According to Remodeling Magazine, some of the best improvements Ohio real estate investors can make include, but aren’t limited to:

  • Garage Door Replacement
  • Manufactured Stone Veneer
  • Vinyl Window Replacement
  • Midrange Kitchen Remodel
  • Steel Entry Door Replacement

The idea isn’t to make the most expensive upgrades. Instead, the idea is to make the improvements with the highest ROI that attract the most homebuyers the first time.

Resell the house in Ohio

Resell The House

Investors must place the home up for sale immediately — if not sooner. The faster the home sells, the better. Every day that passes incurs more costs, not the least of which include property taxes, utility bills, general holding costs, and more expenses.

To sell the house as fast as possible, consider enlisting the services of a staging company and a qualified real estate agent. While both will cost more upfront, the return on investment could be worthwhile. Independently, stagers and real estate agents can help homes sell for more money in less time. Together, the benefits compound and expedite the process.

Read Also: What Is Home Staging And How Can I Use It?

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

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How To Find Houses To Flip In Ohio

To find houses to flip in Ohio, start your search at the following locations:

  • Public Records: Local municipalities keep public records of foreclosures to confirm a home’s chain of title. As a result, investors may visit their local Recorder’s Office to identify distressed homeowners who may be motivated to sell.
  • Foreclosure Auctions: After banks repossess foreclosed homes, they start taking a hit to their bottom line; not only are they missing out on mortgage payments, but they are now paying additional holding costs. Therefore, instead of holding onto nonperforming assets, banks will sell the homes at auctions that anyone is welcome to attend.
  • Direct Mail Campaign: Consider targeting entire neighborhoods or distressed seller lists with a direct mail campaign. As its name suggests, a direct mail campaign will have investors send letters to households asking to buy their homes for cash.
  • Identify Distressed Homes: Finding houses to flip in Ohio may be as simple as driving through a neighborhood and looking for poorly kept properties. Neglect may indicate that the owner is no longer interested in owning the home and motivated to sell.
  • Network: Tap into your network or build relationships with more people in your area. The more people you build a working rapport with, the more likely someone can point you in the direction.
  • Search Real Estate Websites: More and more foreclosures are showing up on real estate websites all across the internet. From the Multiple Listings Service (MLS) to Zillow, online portals are increasing their offerings and making it easier for investors to find foreclosures.

Do You Need A Real Estate License To Flip Houses In Ohio?

No, you do not need a real estate license to flip houses in Ohio. Investors are free to carry out their rehabbing exit strategies across the entire state without becoming licensed professionals. It is worth noting, however, that unlicensed investors may not act as real estate agents or brokers.

While you do not need a license to flip homes in Ohio, you may benefit from having one. You can gain access to the MLS, network with like-minded professionals, and even avoid paying real estate commissions if you are licensed.

How To Flip A House In Ohio With No Money?

Flipping real estate in Ohio requires capital. However, nobody ever said the money used to buy a house has to be your own. It is possible to secure and fund a deal with the help of these flip loans:

  • Private Money Loans: Originated by anyone with excess capital and a willingness to invest it, private money loans are today's investors' preferred source of short-term cash. While interest rates on private money loans are high, their speed of implementation and lack of strict approval requirements are well worth the price of admission.
  • Hard Money Lenders: Second only to private money loans, hard money lenders offer the same advantages as their counterparts — with more professionalism.
  • Wholesaling: While not a flip in the traditional sense, a wholesale deal will have an investor acquire the right to buy a property (at no cost). Once under contract with the original owner, the investor will sell their rights to buy the property to an end buyer.

Read Also: Private Money Lenders: The (ULTIMATE) Guide

Best Cities To Flip Houses In Ohio

Ohio’s relatively high foreclosure rate has created flipping opportunities across the entire state. However, the following cities appear to have the most potential for Ohio home flippers:

  • Columbus: About an hour and a half drive northeast of Cincinnati, Columbus is worth looking into. With an unemployment rate resting slightly below the national average, Columbus’ job market appears to be doing well. That, combined with just over two months of available inventory and plenty of pent-up demand, all but confirms Columbus real estate is a hot commodity.
  • Cleveland: According to ATTOM Data Solutions’ February 2023 U.S. Foreclosure Market Report, one in every 1,934 housing units in Cleveland filed for foreclosure. At that rate, Cleveland has one of the highest foreclosure rates in the country. The city’s high distribution of foreclosures, $93,888 median home value, and pent-up demand suggest investors who learn how to flip houses in Ohio should take a good look at Cleveland.
  • Toledo: No more than two hours west of Cleveland, the Toledo real estate market has become a primary beneficiary of rapid appreciation rates and remote work trends. As more people worked wherever they wanted over the last few years, many people in primary cities like Cleveland traded their expensive homes for cheaper alternatives in Toledo. The added attention has increased home values by 7.7% in the last year and facilitated a more desirable flipping market. At the same time, rental property owners have seen rental rates skyrocket, making a more convincing argument to invest in Toledo.

Final Thoughts On Flipping Homes In Ohio

Ohio property investing is growing more popular with each passing day. As more people look for supplemental income in an uncertain economy, real estate is receiving a lot of deserved attention. If for nothing else, median gross flipping profits typically eclipse those of today’s most popular investment strategies.

Those who learn how to flip houses in Ohio may have a unique advantage. With one of the highest foreclosure rates in the country, Ohio real estate investors may use the steps outlined in this ultimate guide to capitalizing on more opportunities than many of their out-of-state counterparts.

We invite you to join our free training program at Real Estate Skills to equip yourself with the knowledge, insights, and strategies proven to generate substantial returns in the house-flipping industry. Don't miss out on the opportunity to capitalize on Ohio's vibrant real estate market. Sign up for our training today, and start your journey to financial freedom through successful real estate investment!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.

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