Loans in Ohio for 1-4 Unit Rentals Now 2025

Fix and Flip Construction Loans in Ohio: The Ultimate 2025 Guide for 1-4 Unit Rental Properties

Ohio’s real estate market continues its robust momentum in 2025, particularly in the fix and flip sector for 1-4 unit rentals. Whether you are an experienced investor or new to real estate, understanding construction and fix & flip loans is critical for scaling your rental portfolio in the Buckeye State. This comprehensive guide covers everything from loan types and application steps to state-specific market intelligence and lender recommendations for Ohio investors.

Ohio Fix & Flip Investment Market for 2025

In 2025, Ohio remains one of the most investor-friendly states for 1-4 unit rental properties due to strong rental demand, affordable acquisition prices, and significant upside through property renovations. Key city hotspots include:

• Cleveland – Detroit Shoreway, Edgewater, Old Brooklyn: In-demand neighborhoods for SFRs, duplexes, and triplexes with rising rents post-renovation.
• Columbus – Franklinton, North Linden, Milo-Grogan: Large stock of distressed 2-4 units and strong appreciation rates.
• Cincinnati – Price Hill, Avondale, Madisonville: Rental yields above 9%, robust tenant pool, and room for cosmetic and full-gut renovations.
• Dayton – Belmont, Walnut Hills: Low entry prices and consistent rental turnover.
• Toledo – Old West End, Scott Park: Improving fundamentals and overlooked by institutional capital.
• Akron – Highland Square, Ellet: Strong value-add opportunities for multi-unit renovations.
• Youngstown – Wick Park: High cap rates for 3-4 unit properties post-rehab.
• Canton – Market Heights: Steady rental demand and lower rehab costs.

Local knowledge of these neighborhoods can help maximize your loan leverage and exit strategy.

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.

Start Quiz

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).

Page 2 of 5

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.

Page 3 of 5

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

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

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.

Start Quiz

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.

Page 2 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Key Loan Types for Ohio 1-4 Unit Rental Properties in 2025

Ohio investors have access to several specialized loan solutions tailored for acquiring, renovating, and holding single-family homes, duplexes, triplexes, and fourplexes:

1. Fix & Flip Loans

• Short-term (usually 12-18 months)
• High leverage (up to 90% of purchase, 100% of rehab costs, not exceeding 70-75% ARV)
• Interest-only payments during the renovation process
• Best for: investors aiming for a quick turnaround or BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

2. Construction Loans

• Designed for ground-up builds or major structural rehabs
• Funds are disbursed in draws as milestones are met
• Can be converted to long-term rental loans upon completion
• Best for: new builds or complete tear-downs and rebuilds of existing 1-4 units

3. Hard Money Loans

• Asset-based (property focused)
• Quick closing (7-14 days)
• Flexible underwriting for investors with credit challenges or complex projects
• Best for: acquiring distressed properties in competitive situations

4. DSCR (Debt Service Coverage Ratio) Rental Loans

• No need for personal income documentation
• Approval based on property’s income (DSCR, typically 1.1x-1.25x required)
• Ideal refinance exit strategy post-rehab
• Available for SFRs, duplexes, triplexes, fourplexes

5. Rehab Loans

• Specifically cover renovation budgets for existing multi-units
• Funds are usually released in tranches
• Common in both hard money and fix & flip loan structures

Top Ohio Lenders Specializing in 1-4 Unit Construction & Rehab Loans (2025)

The following lenders are well-rated for investor-friendly terms, fast closings, and a focus on 1-4 unit properties in Ohio:

1. RCN Capital
   Nationwide reach, offers 12-24 month fix & flip and construction loans, DSCR rental loans with 30-year amortizations.
2. Lima One Capital
   Active throughout major Ohio metros, provides both bridge (fix & flip) and rental loans up to 4 units.
3. Kiavi (formerly LendingHome)
   Fast online process for SFR, duplex, triplex, and fourplex, flexible rehab draws, up to 90% LTC financing.
4. Do Hard Money
   Operates actively in Ohio, caters to newer and experienced investors, offers up to 100% rehab financing options.
5. Temple View Capital
   Full suite of bridge, construction, and longer-term DSCR loans for Ohio rental properties.
6. Broadmark Realty Capital
   Strong on new construction loans for ground-up or value-add on 2-4 units, responsive local underwriting.

✅ 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.

Start Quiz

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

All of these lenders can accommodate a spectrum of credit histories and property conditions. It’s vital to compare specific lender programs to match your project’s scale and strategy.

Step-by-Step: How to Apply for a Fix & Flip or Construction Loan on Ohio Rentals

1. Identify and Analyze the Property
   Use local market data to assess ARV potential, renovation costs, and target rents for your SFR, duplex, triplex, or fourplex.
2. Select the Right Lender
   Compare rate sheets, leverage allowances (LTC/LTV/ARV), and borrower requirements for lenders active in Ohio.
3. Prepare Your Documents
   Commonly required: Purchase contract, renovation budget & scope, experience/resume (track record), LLC docs (if applicable), ID, proof of funds for down payment, recent bank statements.
4. Submit Application
   Many Ohio lenders use online portals—upload documents, fill out the experience section, provide property details and project timeline.
5. Property Valuation/Appraisal
   Lenders order an appraisal based on expected ARV (for rehab/flip) or current value + construction budget (for construction loans).
6. Loan Approval & Commitments
   Review your term sheet: interest rate, loan-to-cost, rehab draw structure, points/fees, and exit expectations.
7. Closing & Funding
   Sign loan docs, fund closing, and receive purchase funds and initial rehab draw. Rehab and construction funds are typically disbursed in draws after inspection milestones.
8. Renovate and Stabilize
   Complete work per your scope; request draws for completed phases. Maintain clear documentation and receipts.
9. Exit Strategy: Refinance Into DSCR Loan or Sell
   After completion, you may refinance into a long-term DSCR rental loan or list for sale. Lenders like RCN Capital and Lima One Capital can facilitate this transition smoothly.

Ohio Investor Success Stories: Real Loan Examples (2025)

• Cleveland Duplex – $250K Fix & Flip Loan: Purchased a distressed duplex in Edgewater for $110,000, secured a $250,000 fix & flip loan from RCN Capital, including $90,000 for rehab. Renovation completed in 8 months, property appraised at $325,000, refinanced with a DSCR loan at 6.95% fixed, $1,950/month cash flow.
• Columbus Fourplex – $440K Construction Loan: Ground-up fourplex build in Milo-Grogan. Broadmark Realty extended a $440,000 construction loan, covering 85% LTC. Completed in 12 months, stabilized rents brought property value to $600,000.
• Cincinnati SFR – $100K Hard Money Bridge: Single-family flip in Avondale. Has an $80,000 purchase price, secured a $100,000 hard money loan from Do Hard Money (including $30,000 for rehab). After a 6-month turnaround, sold for $170,000, netting strong profit.
• Akron Triplex – $375K DSCR Rental Loan: Purchased and fully rehabbed a triplex with a $375,000 DSCR loan from Lima One Capital. Monthly rent grossed $3,150 with a 1.35 DSCR, 7.10% fixed, 30-year term. Easy approval with no personal income docs.

Ohio Fix & Flip and Construction Loans – Key FAQ (2025)

• Q: What credit score do I need for fix and flip loans in Ohio?
  A: Most hard money and fix & flip lenders will accept borrowers with 620+ FICO, but better rates are often available for 680+.
• Q: How fast can I close?
  A: Hard money and rehab loans in Ohio can close in as little as 7-14 days with complete documentation and clean title.
• Q: Can I finance 100% of the rehab?
  A: Yes—many Ohio lenders offer up to 100% rehab funding as part of your loan, subject to ARV caps (typically 70-75% ARV).
• Q: What is the process for draws?
  A: Draws are released as renovation milestones are completed and typically require lender inspection and synced with your submitted budget.
• Q: Can I buy in an LLC?
  A: Absolutely. Most Ohio lenders prefer to lend to entities (LLC/Corp) for investment properties.

Conclusion: Ready to Grow Your Ohio Rental Portfolio?

✅ 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!

Start Quiz

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

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

With high rental demand and ample distressed property inventory, 2025 is an excellent year for Ohio investors leveraging fix & flip, construction, and rental loans. Reach out to the recommended local lenders, analyze your numbers, and capitalize on the best opportunities in Ohio’s hottest 1-4 unit neighborhoods today!

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN