Fix and Flip Houses in Ohio for Profits Now

Unlocking Profit Potential: Why Ohio is a Fix & Flip Hotspot in 2025

Ohio fix and flip investors are seeing impressive profits in 2025, with median ROI for flips in key metros hitting 24%. Plentiful inventory, stable buyer demand, and below-average renovation costs make cities like Cleveland, Columbus, and Cincinnati stand out nationally. In Q1 2025, successful flips in Ohio averaged $55,000 net profit per transaction, outpacing Midwest and national averages, and the region’s affordability amplifies market opportunities compared to pricier coastal states.

Ohio Real Estate Market Overview: 2025 Data & Trends

• Statewide Supply: Inventory in major metros (Cleveland, Columbus, Cincinnati) is up 12% YoY, hovering around 2.8 months of supply as of March 2025.
• Median Days on Market (DOM): 22 days in Greater Columbus; 26 days in Cincinnati.
• Median Selling Price: $245,000 (March 2025), up 5.2% from 2024; Cleveland metros still offer entry points under $140,000.
• Construction Costs: Average moderate rehab costs $54-$85/sqft, up 4% YoY versus the U.S. national average of $95/sqft for comparable homes.
• Ohio Flip Margins: Average gross margin $67,000/flip according to ATTOM Data (2024 Q4), with ROI consistently above 22% in metro Cuyahoga, Franklin, Montgomery, and Hamilton counties.

Fix & Flip Strategy in 2025: How to Succeed in Ohio

Step-by-Step Process and ROI Analysis

1. Deal Sourcing: Tap local wholesalers, MLS, and foreclosure auctions. Typical purchase price for distressed single-family: $80,000–$160,000, depending on the ZIP and property type.
2. Property Evaluation: Use a detailed scope of work and calculate ARV using recent comps (ideally three sold within 0.5 miles in last 6 months). Columbus ZIP 43224—Example property: Purchase at $120,000, potential ARV $200,000.
3. Renovation & Value-Add: Most Ohio flips require cosmetic updating plus kitchens, baths, windows, and occasionally roofs or HVAC. Average mid-tier 1,900 sq. ft. home: $65,000 rehab budget.
4. Timeline: 14-18 weeks from acquisition to listing, with most projects scheduled for 30-45 days renovation and 10-15 days on market before contract.
5. Profit Example (Cincinnati, 45231):
   
   – Purchase Price: $110,000
   
   – Rehab: $55,000
   
   – ARV: $195,000
   
   – Selling Costs (6%): $11,700
   
   – Hard Money Interest (5 months @ 11.25%): ~$4,000
   
   – Net Profit: $14,300 (13% ROI after all costs)

Hard money lending rates in Ohio for 2025 average 10.25%–12.5% with points ranging from 1.5–3, and most lenders fund up to 85% Loan-to-Cost (LTC), 70% ARV.

What to Flip in Ohio: Property Types & Neighborhood Picks

• Single-Family Homes:
  
  – Top starter and move-up neighborhoods: Old Brooklyn (Cleveland 44109), Harrison West (Columbus 43215), Oakley (Cincinnati 45209)
  – Purchase range: $90,000–$180,000; ARV potential: $170,000–$280,000
• Condos & Townhomes:
  
  – Best in stabilized or gentrifying urban ZIP codes (Downtown Columbus 43215, Worthington 43085)
  – Lower renovation costs, but smaller ARV jumps
• Small Multi-Family:
  
  – Duplexes in Cleveland Heights (44118) or Dayton’s Five Oaks (45406) offer affordable entry with steady end-user and investor demand
  – Typical purchase: $140,000–$180,000, ARV: $250,000–$320,000
• Ideal Properties: Built 1950–1985, structurally sound, needing updates to kitchens/baths, roofs, windows, and cosmetic finishes

Ohio Neighborhoods & ZIP Codes with Flip Opportunity

• Columbus (Franklin County): 43224, 43227, 43232 — Median purchase $120K, post-renovation sales $180–210K
• Cincinnati (Hamilton County): 45231, 45238, 45205 — Median purchase $105–130K, ARV $170–210K
• Cleveland (Cuyahoga County): 44109, 44118, 44111 — Median purchase $85–112K, ARV $145–190K
• Dayton: 45406 — Entry below $90K, ARV $150K+
• Investors should review city-specific permit requirements (e.g., lead-safe certificates in Cleveland, general rehab permits in Columbus, licensed trades for HVAC/electrical in Cincinnati).
  Local contractor labor rates: $36–$54/hour (skilled trades), general contractors: $50–$82/hour.

Financing Your Flip: Hard Money & Private Lending in Ohio

• Top Hard Money Lenders for Fix & Flip:
  • Lima One Capital (10.5-12.2% APR, 1.5-2 pts, up to 85% LTC)
  • Do Hard Money (11–12.5% APR, 2-3 pts, 75% ARV/90% purchase + rehab)
  • RCN Capital (10–11.5%, 1.5-2 pts, flexible exit terms)
  • Kiko Company (Ohio-based, 10.75–12% APR, custom terms)
  • DFW Hard Money (serving Ohio markets, 11–12% APR)
  • We Lend LLC (national, strong Ohio presence, rates from 9.99%)
• Private Money Networks: Join groups like Cincinnati REIA, Columbus Investors Group, and Ohio Real Estate Investors Association for deal flow and private capital
• Typical Fix & Flip Loan Terms:
  • Interest-Only Payments (no prepay penalty)
  • 6–12 month loan duration
  • 1.5–3 points origination fee
  • Up to 90% purchase, 100% rehab (capped at 70–75% ARV)

Step-By-Step Ohio Fix & Flip Process: 12 Critical Steps

1. Identify promising neighborhoods/ZIPs with < 60 DOM and upward price trend
2. Source leads from wholesalers, agents, REO/foreclosure listings, and auctions
3. Run strict deal analysis: Inspect property, confirm ARV with 3+ comps, and calculate max allowable offer (MAO = ARV × 0.70 – repair costs)
4. Assess renovation scope with licensed contractors; get written quotes
5. Secure hard money or private lender preapproval
6. Negotiate and win property (build in contingencies)
7. Apply for required municipal permits (city/county offices in each metro have easy online permit portals)
8. Manage renovations: Use milestone payments and daily progress reports to minimize risk
9. Stage and photograph after completion; prep for listing
10. List on MLS with an agent specializing in retail buyers or first-time investors
11. Negotiate offers and complete buyer’s inspection period
12. Close and disburse profit; rinse and repeat!

Due Diligence & Red Flags Checklist

• Foundation, roof, and major mechanical systems (HVAC/electrical/plumbing)
• Neighborhood trends: Crime, school scores, major employer moves
• Permit/paperwork status: Unpermitted additions are a major pitfall
• Local code compliance, especially in lead-safe and rental registration zones (Cleveland, Columbus)

Success Story: Cleveland Flip Breakdown (44109)

Jane, an investor from Parma, purchased a 3-bed, 2-bath SFR in the 44109 ZIP for $93,000. She spent $48,000 on renovations (kitchen, 2 baths, roof, windows, floors, minor landscaping). All permits were secured online via the Cleveland Building Department, and renovations took 42 days. The finished home sold for $184,000 after just 9 days on market.

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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Page 1 of 5

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.

Page 3 of 5

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.

Page 5 of 5

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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• Purchase: $93,000
• Rehab: $48,000
• Selling/closing costs (total 7%): $12,880
• Hard money interest (5 months @ 11.5%): $4,450
• Net Profit: $25,670

Timing: Bought in Jan 2025, completed & sold by May—perfect to catch the spring homebuyer rush for maximum ARV.

Get Started Flipping in Ohio: Take Action Now

• Start building your Ohio flip team (broker, contractor, lender) today
• Download free neighborhood ARV spreadsheets from the Ohio Real Estate Investors Association site
• Network at Cincinnati and Columbus investment meetups—find funding and deals
• Master Ohio’s permit process to avoid delays
• Schedule property tours and run real-world numbers—don’t rely on online estimates alone!

Flipping in Ohio in 2025 can deliver ,000–,000 per property with moderate entry capital, strong local lending partners, and solid process discipline.
Bookmark this guide, run your numbers, and start building your house flipping pipeline in Ohio!

Get a no obligation quote today. 

✅ 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.

Page 2 of 5

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.

Page 3 of 5

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%

Page 4 of 5

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.

Page 5 of 5

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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✅ 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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What's the most appealing aspect of a DSCR loan for your investment property financing needs?

A) No personal income verification (no W-2s or tax returns needed!)B) Approval based on the property's cash flow (DSCR)C) Faster closing times compared to traditional mortgagesD) Flexibility for self-employed investors and complex financial situations

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