Fix and Flip Houses in Ohio for Profits Now

Introduction: Ohio’s 2025 Fix & Flip Profit Surge

With fix and flip houses in Ohio netting average gross profits of $69,400 per transaction in Q1 2025 (ATTOM Data), the Buckeye State continues attracting both new and seasoned real estate investors. Ohio’s stable demand, affordable entry prices, and abundant distressed inventory mean strategic investors can realize returns well above national averages. As construction costs steady and the days-on-market across key cities dip to under 25 days, flipping in Ohio stands out as a top wealth-builder for 2025.

Market Overview: 2025 Ohio Real Estate Trends

• Median Home Price (Ohio, Jan 2025): $228,600 (vs. U.S. avg. $384,500)
• Inventory Level: 2.8 months statewide (tight supply)
• Days on Market (DOM): 22 (Columbus), 26 (Cleveland), 21 (Cincinnati)
• 2025 Flip ROI (state avg): 26.1%
• Construction Cost Index: Up 7% year-over-year; Avg. $43–$62/sq ft light rehab; $78–$115/sq ft major overhaul

Ohio’s combination of low acquisition costs and fast-moving inventory outpaces many states, making fix and flip more viable, even for beginners wary of market risk.

Fix & Flip Strategy Deep Dive: Maximizing Your Ohio ROI

Step-by-Step Flipping Process

1. Lead Generation: Target MLS, auctions, wholesalers, and distressed sellers.
2. Deal Analysis: Use the 70% Rule. Example: House with ARV $250,000, needs $45,000 rehab: Offer = $250,000 x 0.7 – $45,000 = $130,000.
3. Acquisition: Negotiate, secure earnest money, conduct inspections.
4. Financing: Close with hard money or private capital; Ohio hard money rates in 2025 are typically 8.25%–11.5%, 1–2 points, 75% LTV.
5. Renovation: Hire licensed, insured contractors. Common cost ranges:
   • Cosmetic update: $18–$32/sq ft
   • Full gut/major systems: $70–$110/sq ft
6. Permits & Compliance: Pull required local permits (varies by city); plan 2-4 weeks into your schedule for approval in Cleveland, Columbus, Cincinnati.
7. Project Management: Oversee progress, order materials, adapt to supply changes.
8. Staging & Photos: Professional staging ($1,200–$2,800 for SFR/condo) and photography increase perceived value.
9. Listing: Price to sell quickly—agents recommend 96–98% of ARV for flips (fast capital recycling).
10. Sale & Closing: 7–14 day contract-to-close typical for updated homes in hot neighborhoods.

Purchase Price and ARV Ranges (Ohio, 2025)

• Acquisition: $105,000–$180,000 (core metro SFR; major cities: $135,000–$210,000)
• Renovations: $35,000 (cosmetic) – $109,000 (full gut, 1,700 sq ft Cape Cod)
• Resale / ARV: $190,000–$350,000 (depends on zip & finish level)
• Typical Timeline: 11–14 weeks from closing to resale for most properties, 6–10 weeks for cosmetic flips.

Property Type Analysis: Opportunities by Asset Class

Single-Family Homes

• Best Neighborhoods: Clintonville (43202), Westgate (43204), Lakewood (44107), Oakley (45209)
• Ideal Price Points: $145,000–$180,000 purchase, $265,000+ resale

Condos & Townhomes

• Where: Short North (Columbus), Tremont (Cleveland), Hyde Park (Cincinnati)
• Purchase Range: $90,000–$155,000, ARV $175,000–$225,000
• Demand: High for updated condos among young professionals and downsizers

Small Multi-Family (Duplex, Triplex)

• Hot Zips: 44109 (Cleveland), 43206 (Columbus), 45212 (Cincinnati)
• Typical Flip Margin: $47,000–$68,000 gross profit; refinance and hold as BRRRR also popular

Property Condition & Renovation Scope

• Look for homes needing: new kitchens/baths, windows, moderate systems (HVAC, roof).
• Avoid: severe foundation issues, high water intrusion (common in 1930s–60s homes around Akron, Youngstown)

Local Market Intelligence: ZIP Code Profit Hotspots

• 43202 (Clintonville, Columbus): Buy $179,000, ARV $315,000; Moderate 9-week rehab, $52,000 budget.
• 45209 (Oakley, Cincinnati): Buy $190,000, $50,000 rehab, sell $340,000.
• 44107 (Lakewood, Cleveland): Buy $135,000, $39,500 rehab, sell $238,000.
• 43204 (Westgate, Columbus): Entry-level flips; $110,000–$130,000 purchase, $210,000+ ARV.
• 44109 (Brooklyn Centre, Cleveland): Duplex buy $120,000, $65,000 reno, sell $245,000.

Contractor Costs (Ohio 2025)

• General Contractors: $55–$70/hr
• Roof replacement: $8,400–$13,000 (1,800 sq ft home, asphalt shingle)
• Full kitchen rehab: $16,500–$32,000
• Permits: $500–$2,200, varies city/extent of work

Cities with Strong Development Activity

• Columbus (Franklinton, Italian Village): New apartments, retail driving up comps
• Cleveland (Ohio City, Tremont): Infill, historic rehab incentives
• Cincinnati (Madisonville, Pleasant Ridge): Ongoing gentrification, major employer expansions

Ohio Fix & Flip Financing Landscape

Top Hard Money Lenders in Ohio (2025)

• “Lima One Capital”: 8.99%, 75% LTV, no prepay penalty
• “Do Hard Money”: 9.5%, 2 points
• “Residential Capital Partners”: 9.25%–10%, 70–75% LTC
• “Cogo Capital”: 10.5%, 1–2 points, flexible draws
• “Certain Lending”: 8.25% (experienced flippers, repeat investor rate)

Ohio Hard Money Loan Terms

• Max 12-month loan term / interest only
• Minimum FICO: 600–660 commonly accepted
• Max 65–75% After-Repair Value financed

Private money networks (meetups in Columbus & Cleveland, Facebook groups like “Ohio Property Investors”) remain active for those wanting flexible, relationship-driven terms. Expect 7.5–9% rates, 2–3 points, short terms, and asset-backed underwriting.

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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Step-by-Step Ohio House Flip: Process & Execution

1. Set Profit Criteria: Minimum $30,000 net per flip; ARV minus 30% baseline (cushion for overruns).
2. Source & Qualify Leads: MLS alerts, auction lists, probates, wholesalers.
3. Initial Walkthrough: Check major systems, layout, city code issues.
4. Detailed ARV Analysis: Use 3–5 strong comps—must have similar bed/bath, recent upgrades, sold <60 days.
5. Budget Buildout: Have at least 2–3 contractor/handyman bids.
6. Offer and Contract: Prepare for multiple counteroffers in the hottest zip codes; have a proof of funds letter ready.
7. Due Diligence: Title search, permit records, taxes/assessments, city point-of-sale inspection if required.
8. Finance & Close: Secure funding, schedule closing (7–21 days typical).
9. Rehab Kickoff: Permits pulled, draw schedule established, ongoing jobsite visits.
10. Staging & Marketing: Order Matterport/3D tours, online listing blitz, host open houses when possible.
11. Review Offers & Negotiate: Respond quickly, prioritize clean contracts (waived contingencies, cash buyers).
12. Close & Disbursement: Pay off hard money, distribute profits, repeat the cycle.

Success Story Example: Realistic Ohio Flip in 2025

• Location: Clintonville, Columbus (43202)
• Purchase Price: $180,000 (off-market, light cosmetic issues)
• Renovation Budget: $42,000 (full kitchen + bath, paint, refinished hardwoods, new HVAC)
• Hard Money Terms: 10%, $5,500 origination (2 points), $174,000 funded
• Timeframe: 10 weeks renovation, 18 days on market, 28-day close
• Sale Price: $304,000 (ARV; strong comps, staged beautifully)
• Total Project Costs with soft costs/interest: $240,800
• Net Profit (before taxes): $49,800
• ROI: 20.7% in just under 5 months

Key Lessons: Sticking to budgets and leveraging trusted local contractors, plus pricing to sell, allowed this investor to turn and recycle capital before inflation could erode margins.

Common Pitfalls to Avoid in Ohio (2025)

• Overestimating ARV—be strict on comps and discount for busy roads, odd layouts
• Skipping phase inspections in older homes (electrical, foundation, asbestos risk)
• Failing to budget for longer holding times if market softens or weather delays construction (factor for Q1/Q4 flips)
• Not pulling permits—especially in Cuyahoga County and Cincinnati city limits

Ready to Launch Your 2025 Ohio Flip?

Start building your wealth with strategic fix and flips in Ohio’s best neighborhoods. Research ZIP codes, build your contractor roster, and connect with local hard money lenders to get started. Bookmark this resource, share it with your partners, and revisit Ohio’s market performance frequently for maximum results.

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Take Action: Turn today’s market numbers into tomorrow’s profits—evaluate your first (or next) Ohio fix and flip deal this week.

Get a no obligation quote today. 

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

Page 3 of 3

Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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