{"id":774,"date":"2026-08-12T13:40:37","date_gmt":"2026-08-12T17:40:37","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/"},"modified":"2026-08-12T15:01:53","modified_gmt":"2026-08-12T19:01:53","slug":"ohio-brrrr-strategy","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/","title":{"rendered":"BRRRR Ohio: Worked Examples &#038; Calculator Guide (2026)"},"content":{"rendered":"<p><strong>BRRRR in Ohio<\/strong> works exceptionally well because of low purchase prices, affordable rehab costs, and strong rent-to-price ratios. A Cleveland SFR bought at $85K, rehabbed for $30K, appraised at $140K, and rented for $1,300\/month can return most of your capital on refinance \u2014 the core BRRRR promise. Use the <a href=\"\/states\/ohio\/brrrr-calculator\">Ohio BRRRR calculator<\/a> to model the full Buy \u2192 Rehab \u2192 Rent \u2192 Refinance \u2192 Repeat cycle with Ohio-specific defaults.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<p><span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav>\n<ul class='ez-toc-list ez-toc-list-level-1 ' >\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Why_Ohio_Is_a_Strong_BRRRR_Market\" >Why Ohio Is a Strong BRRRR Market<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#BRRRR_Worked_Example_Cleveland_SFR\" >BRRRR Worked Example: Cleveland SFR<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Phase_1_Acquisition_Rehab\" >Phase 1: Acquisition + Rehab<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Phase_2_Rent\" >Phase 2: Rent<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Phase_3_Refinance\" >Phase 3: Refinance<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Phase_4_Post-Refi_Cash_Flow\" >Phase 4: Post-Refi Cash Flow<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Best_Ohio_Markets_for_BRRRR\" >Best Ohio Markets for BRRRR<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Ohio_BRRRR_Risks\" >Ohio BRRRR Risks<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#1_Appraisal_Risk\" >1. Appraisal Risk<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#2_Cleveland_Transfer_Tax_on_Repeat_Transactions\" >2. Cleveland Transfer Tax on Repeat Transactions<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#3_Rehab_Cost_Overruns\" >3. Rehab Cost Overruns<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#4_Vacancy_During_Lease-Up\" >4. Vacancy During Lease-Up<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#5_Municipal_Income_Tax_on_Rental_Income\" >5. Municipal Income Tax on Rental Income<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Does_BRRRR_work_in_Ohio_in_2026\" >Does BRRRR work in Ohio in 2026?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#How_much_cash_do_I_need_to_start_BRRRR_in_Ohio\" >How much cash do I need to start BRRRR in Ohio?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#What_is_a_good_ARV-to-purchase_ratio_for_Ohio_BRRRR\" >What is a good ARV-to-purchase ratio for Ohio BRRRR?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Is_Cleveland_or_Dayton_better_for_BRRRR\" >Is Cleveland or Dayton better for BRRRR?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Can_I_BRRRR_with_a_DSCR_loan_refinance_in_Ohio\" >Can I BRRRR with a DSCR loan refinance in Ohio?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/ohio-brrrr-strategy\/#Related_Ohio_Tools\" >Related Ohio Tools<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_Ohio_Is_a_Strong_BRRRR_Market\"><\/span><span class=\"ez-toc-section\" id=\"Why_Ohio_Is_a_Strong_BRRRR_Market\"><\/span><span class=\"ez-toc-section\" id=\"Why_Ohio_Is_a_Strong_BRRRR_Market\"><\/span>Why Ohio Is a Strong BRRRR Market<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Low entry prices.<\/strong> Cleveland SFRs in the $70K\u2013$100K range are realistic purchases \u2014 properties that need cosmetic work but have solid bones. After a $25K\u2013$40K rehab, they appraise at $130K\u2013$160K. That spread between purchase+rehab and ARV is where BRRRR value is created.<\/p>\n<p><strong>Favorable rent-to-price ratios.<\/strong> A rehabbed Cleveland property at $140K renting for $1,300\/month produces a gross rent multiplier of 9.0 \u2014 strong enough to support a 75% LTV cash-out refinance while maintaining positive cash flow. Calculate your LTV in the <a href=\"\/ltv-calculator\">LTV calculator<\/a>.<\/p>\n<p><strong>Low insurance costs ($2,100\/yr).<\/strong> Ohio insurance is half what Texas or Florida investors pay. Lower insurance means higher NOI, which means better DSCR on the refinance \u2014 making it easier to qualify for cash-out.<\/p>\n<p><strong>Quick rehab timelines.<\/strong> Ohio&#8217;s lower labor costs and available contractor pool mean rehabs typically run 2\u20134 months, compared to 4\u20136 months in higher-cost markets. Less holding time = lower carrying costs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BRRRR_Worked_Example_Cleveland_SFR\"><\/span><span class=\"ez-toc-section\" id=\"BRRRR_Worked_Example_Cleveland_SFR\"><\/span><span class=\"ez-toc-section\" id=\"BRRRR_Worked_Example_Cleveland_SFR\"><\/span>BRRRR Worked Example: Cleveland SFR<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Buy:<\/strong> 3-bed\/1-bath in Parma. Purchase price: $85,000 (cash or hard money).<br \/>\n<strong>Rehab:<\/strong> $32,000 (kitchen, bath, flooring, paint, systems). Timeline: 3 months.<br \/>\n<strong>Rent:<\/strong> $1,300\/month after rehab.<br \/>\n<strong>Refinance:<\/strong> Appraised at $140,000. Cash-out refi at 75% LTV = $105,000 loan.<br \/>\n<strong>Repeat:<\/strong> Capital recovered for next deal.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phase_1_Acquisition_Rehab\"><\/span><span class=\"ez-toc-section\" id=\"Phase_1_Acquisition_Rehab\"><\/span><span class=\"ez-toc-section\" id=\"Phase_1_Acquisition_Rehab\"><\/span>Phase 1: Acquisition + Rehab<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Cost<\/th>\n<th>Amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Purchase price<\/td>\n<td>$85,000<\/td>\n<\/tr>\n<tr>\n<td>Closing costs (3%)<\/td>\n<td>$2,550<\/td>\n<\/tr>\n<tr>\n<td>Rehab budget<\/td>\n<td>$32,000<\/td>\n<\/tr>\n<tr>\n<td>Holding costs (3 months)<\/td>\n<td>$3,600<\/td>\n<\/tr>\n<tr>\n<td><strong>Total cash invested<\/strong><\/td>\n<td><strong>$123,150<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Holding costs during rehab: hard money interest ($85K \u00d7 12% \u00f7 12 = $850\/mo) + taxes ($178\/mo) + insurance ($150\/mo) + utilities ($75\/mo) = ~$1,200\/month \u00d7 3 months = $3,600. Model these costs in the <a href=\"\/hard-money-loan-calculator\">hard money loan calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phase_2_Rent\"><\/span><span class=\"ez-toc-section\" id=\"Phase_2_Rent\"><\/span><span class=\"ez-toc-section\" id=\"Phase_2_Rent\"><\/span>Phase 2: Rent<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>Monthly rent: $1,300\nGross annual: $15,600\nVacancy (8%): \u2212$1,248\nEGI: $14,352\n\nExpenses:\n  Tax (1.89%): $2,646\n  Insurance: $1,800\n  Maintenance (8%): $1,248\n  PM (10%): $1,435\nTotal: $7,129\n\nNOI: $7,223<\/code><\/pre>\n<h3><span class=\"ez-toc-section\" id=\"Phase_3_Refinance\"><\/span><span class=\"ez-toc-section\" id=\"Phase_3_Refinance\"><\/span><span class=\"ez-toc-section\" id=\"Phase_3_Refinance\"><\/span>Phase 3: Refinance<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>ARV (appraised): $140,000\nCash-out refi at 75% LTV: $105,000\nRefi closing costs (2%): $2,100\nNet cash received: $102,900\n\nCash invested: $123,150\nCash recovered: $102,900\nCash left in deal: $20,250<\/code><\/pre>\n<h3><span class=\"ez-toc-section\" id=\"Phase_4_Post-Refi_Cash_Flow\"><\/span><span class=\"ez-toc-section\" id=\"Phase_4_Post-Refi_Cash_Flow\"><\/span><span class=\"ez-toc-section\" id=\"Phase_4_Post-Refi_Cash_Flow\"><\/span>Phase 4: Post-Refi Cash Flow<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>New loan: $105,000 at 7.0%, 30 years\nMonthly P&amp;I: $699\nAnnual debt service: $8,388\n\nAnnual cash flow: $7,223 \u2212 $8,388 = \u2212$1,165\nMonthly cash flow: \u2212$97<\/code><\/pre>\n<p><strong>Result: Cash-flow negative by $97\/month after refinance.<\/strong> This is a common outcome for BRRRR deals at 7% rates. The property is slightly underwater on cash flow, but you recovered $102,900 of your $123,150 investment \u2014 an 83% capital return. That $102,900 funds the next purchase.<\/p>\n<p>To make this deal cash-flow positive post-refi: either increase rent to $1,450\/month, reduce refi LTV to 70% (leave more cash in), or wait for rates to drop to 6% on a future refinance. Run these scenarios in the <a href=\"\/states\/ohio\/brrrr-calculator\">Ohio BRRRR calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Best_Ohio_Markets_for_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"Best_Ohio_Markets_for_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"Best_Ohio_Markets_for_BRRRR\"><\/span>Best Ohio Markets for BRRRR<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Metro<\/th>\n<th>Typical Purchase<\/th>\n<th>Rehab<\/th>\n<th>ARV<\/th>\n<th>Post-Refi Rent<\/th>\n<th>BRRRR Viability<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Cleveland<\/strong><\/td>\n<td>$70K\u2013$100K<\/td>\n<td>$25K\u2013$40K<\/td>\n<td>$130K\u2013$160K<\/td>\n<td>$1,200\u2013$1,400<\/td>\n<td>Best \u2014 widest spreads<\/td>\n<\/tr>\n<tr>\n<td><strong>Dayton<\/strong><\/td>\n<td>$80K\u2013$120K<\/td>\n<td>$20K\u2013$35K<\/td>\n<td>$140K\u2013$180K<\/td>\n<td>$1,100\u2013$1,300<\/td>\n<td>Good \u2014 fast sells, military tenants<\/td>\n<\/tr>\n<tr>\n<td><strong>Cincinnati<\/strong><\/td>\n<td>$120K\u2013$180K<\/td>\n<td>$30K\u2013$50K<\/td>\n<td>$200K\u2013$260K<\/td>\n<td>$1,300\u2013$1,500<\/td>\n<td>Moderate \u2014 tighter spreads<\/td>\n<\/tr>\n<tr>\n<td><strong>Columbus<\/strong><\/td>\n<td>$150K\u2013$220K<\/td>\n<td>$30K\u2013$50K<\/td>\n<td>$250K\u2013$310K<\/td>\n<td>$1,400\u2013$1,600<\/td>\n<td>Difficult \u2014 prices too high<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Cleveland and Dayton offer the widest purchase-to-ARV spreads, making them the strongest BRRRR markets. Columbus pricing makes BRRRR difficult unless you find significantly below-market deals. For rehab budgeting, use the <a href=\"\/rehab-cost-estimator\">rehab cost estimator<\/a> and read the <a href=\"\/blog\/cost-to-rehab-a-house\/\">cost to rehab a house guide<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ohio_BRRRR_Risks\"><\/span><span class=\"ez-toc-section\" id=\"Ohio_BRRRR_Risks\"><\/span><span class=\"ez-toc-section\" id=\"Ohio_BRRRR_Risks\"><\/span>Ohio BRRRR Risks<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Appraisal_Risk\"><\/span><span class=\"ez-toc-section\" id=\"1_Appraisal_Risk\"><\/span><span class=\"ez-toc-section\" id=\"1_Appraisal_Risk\"><\/span>1. Appraisal Risk<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the appraiser values the property below your expected ARV, you get less cash back on refinance and leave more money in the deal. In Cleveland, comps can vary significantly block by block. Get a BPO (broker price opinion) before committing to rehab scope.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Cleveland_Transfer_Tax_on_Repeat_Transactions\"><\/span><span class=\"ez-toc-section\" id=\"2_Cleveland_Transfer_Tax_on_Repeat_Transactions\"><\/span><span class=\"ez-toc-section\" id=\"2_Cleveland_Transfer_Tax_on_Repeat_Transactions\"><\/span>2. Cleveland Transfer Tax on Repeat Transactions<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every purchase in Cleveland triggers the 1.18% city transfer tax. On frequent BRRRR cycles, this adds up. A $85K purchase = $1,003 in city transfer tax each time. Consider targeting suburbs without city transfer taxes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Rehab_Cost_Overruns\"><\/span><span class=\"ez-toc-section\" id=\"3_Rehab_Cost_Overruns\"><\/span><span class=\"ez-toc-section\" id=\"3_Rehab_Cost_Overruns\"><\/span>3. Rehab Cost Overruns<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ohio labor is cheaper than coastal markets but not immune to overruns. Budget a 15% contingency on top of contractor bids. On a $32K rehab, that is $4,800 \u2014 the difference between recovering 83% and 87% of your capital. Track costs in the <a href=\"\/rehab-cost-estimator\">rehab cost estimator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Vacancy_During_Lease-Up\"><\/span><span class=\"ez-toc-section\" id=\"4_Vacancy_During_Lease-Up\"><\/span><span class=\"ez-toc-section\" id=\"4_Vacancy_During_Lease-Up\"><\/span>4. Vacancy During Lease-Up<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cleveland vacancy runs 8\u201310%. Budget 4\u20136 weeks of vacancy between rehab completion and first tenant placement. That is $1,300\u2013$2,000 in lost rent plus ongoing carrying costs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Municipal_Income_Tax_on_Rental_Income\"><\/span><span class=\"ez-toc-section\" id=\"5_Municipal_Income_Tax_on_Rental_Income\"><\/span><span class=\"ez-toc-section\" id=\"5_Municipal_Income_Tax_on_Rental_Income\"><\/span>5. Municipal Income Tax on Rental Income<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ohio cities levy 1.5\u20132.5% income tax on net rental income. On a BRRRR deal generating $7,200 NOI, Cleveland&#8217;s 2.5% city tax costs $180\/year. Not a deal-breaker but factor it into your annual return calculation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"Does_BRRRR_work_in_Ohio_in_2026\"><\/span><span class=\"ez-toc-section\" id=\"Does_BRRRR_work_in_Ohio_in_2026\"><\/span><span class=\"ez-toc-section\" id=\"Does_BRRRR_work_in_Ohio_in_2026\"><\/span>Does BRRRR work in Ohio in 2026?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">Yes, but with tighter margins than in the low-rate era. Cleveland and Dayton are the best Ohio markets for BRRRR due to wide purchase-to-ARV spreads. At 7% refinance rates, most BRRRR deals produce slim or slightly negative cash flow post-refi \u2014 the value is in capital recycling, not cash flow. Use the <a href=\"\/states\/ohio\/brrrr-calculator\">Ohio BRRRR calculator<\/a> to model the full cycle.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"How_much_cash_do_I_need_to_start_BRRRR_in_Ohio\"><\/span><span class=\"ez-toc-section\" id=\"How_much_cash_do_I_need_to_start_BRRRR_in_Ohio\"><\/span><span class=\"ez-toc-section\" id=\"How_much_cash_do_I_need_to_start_BRRRR_in_Ohio\"><\/span>How much cash do I need to start BRRRR in Ohio?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">For a typical Cleveland BRRRR: $85K purchase + $32K rehab + $6K closing\/holding = ~$123K total. If using hard money (70\u201380% of purchase), you need $17K\u2013$25K down payment + full rehab budget + holding costs = roughly $55K\u2013$65K cash to start. After refinance, you recover 70\u201385% of total capital invested.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_is_a_good_ARV-to-purchase_ratio_for_Ohio_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"What_is_a_good_ARV-to-purchase_ratio_for_Ohio_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"What_is_a_good_ARV-to-purchase_ratio_for_Ohio_BRRRR\"><\/span>What is a good ARV-to-purchase ratio for Ohio BRRRR?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Target an all-in cost (purchase + rehab) at 70\u201375% of ARV. On a Cleveland deal: $85K purchase + $32K rehab = $117K all-in. ARV of $140K puts you at 83% \u2014 slightly above ideal, but workable if you want to leave some cash in. For a 75% ratio, you need either a lower purchase ($73K) or higher ARV ($156K). Use the <a href=\"\/arv-calculator\">ARV calculator<\/a> to estimate after-repair value.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"Is_Cleveland_or_Dayton_better_for_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"Is_Cleveland_or_Dayton_better_for_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"Is_Cleveland_or_Dayton_better_for_BRRRR\"><\/span>Is Cleveland or Dayton better for BRRRR?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Both work well. Cleveland has more inventory and higher rents but also higher property taxes (1.89%) and the city transfer tax (1.18%). Dayton has lower prices, faster sales (15 days on market), and a stable military tenant base but a smaller market with fewer deals. Many Ohio BRRRR investors operate in both.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"Can_I_BRRRR_with_a_DSCR_loan_refinance_in_Ohio\"><\/span><span class=\"ez-toc-section\" id=\"Can_I_BRRRR_with_a_DSCR_loan_refinance_in_Ohio\"><\/span><span class=\"ez-toc-section\" id=\"Can_I_BRRRR_with_a_DSCR_loan_refinance_in_Ohio\"><\/span>Can I BRRRR with a DSCR loan refinance in Ohio?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Yes, and it is the most common refinance strategy for BRRRR investors scaling past 4\u201310 properties. The key issue in Ohio is minimum loan amounts \u2014 DSCR lenders typically require $75K\u2013$100K minimum. A $140K ARV at 75% LTV = $105K loan, which clears most minimums. Check qualification in the <a href=\"\/states\/ohio\/dscr-calculator\">Ohio DSCR calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Ohio_Tools\"><\/span><span class=\"ez-toc-section\" id=\"Related_Ohio_Tools\"><\/span><span class=\"ez-toc-section\" id=\"Related_Ohio_Tools\"><\/span>Related Ohio Tools<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/states\/ohio\/brrrr-calculator\"><strong>Ohio BRRRR Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/ohio\/rental-property-calculator\"><strong>Ohio Rental Property Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/ohio\/dscr-calculator\"><strong>Ohio DSCR Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/ohio\/closing-costs-calculator\"><strong>Ohio Closing Costs Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/ohio\/\"><strong>Ohio Calculator Hub<\/strong><\/a><\/li>\n<li><a href=\"\/hard-money-loan-calculator\"><strong>Hard Money Loan Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/arv-calculator\"><strong>ARV Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/rehab-cost-estimator\"><strong>Rehab Cost Estimator<\/strong><\/a><\/li>\n<li><a href=\"\/blog\/ohio-rental-property-investment\/\">Ohio Rental Property Investment Guide<\/a><\/li>\n<li><a href=\"\/blog\/cost-to-rehab-a-house\/\">Cost to Rehab a House<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-strategy-guide\/\">BRRRR Strategy Explained<\/a><\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<p class=\"text-sm text-gray-500\">Sources: <a href=\"https:\/\/tax.ohio.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ohio Department of Taxation<\/a> \u00b7 <a href=\"https:\/\/insurance.ohio.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ohio Department of Insurance<\/a> \u00b7 <a href=\"https:\/\/fred.stlouisfed.org\/tags\/series?t=ohio\" target=\"_blank\" rel=\"noopener noreferrer\">FRED Ohio Data<\/a> \u00b7 <a href=\"https:\/\/taxfoundation.org\/location\/ohio\/\" target=\"_blank\" rel=\"noopener noreferrer\">Tax Foundation<\/a> \u00b7 <a href=\"https:\/\/www.census.gov\/quickfacts\/OH\" target=\"_blank\" rel=\"noopener noreferrer\">Census Bureau<\/a><\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ohio-brrrr-cleveland-sfr-example.jpg\" alt=\"BRRRR Ohio Cleveland SFR example\" class=\"wp-image-802\" \/><figcaption>Cleveland BRRRR: Buy 85K, Rehab 32K, ARV 140K, 83% capital return<\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ohio-brrrr-best-markets-comparison.jpg\" alt=\"BRRRR Ohio best markets comparison\" class=\"wp-image-803\" \/><figcaption>Ohio BRRRR: Cleveland and Dayton best markets<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>BRRRR in Ohio works exceptionally well because of low purchase prices, affordable rehab costs, and strong rent-to-price ratios. A Cleveland SFR bought at $85K, rehabbed for $30K, appraised at $140K,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=774"}],"version-history":[{"count":3,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/774\/revisions"}],"predecessor-version":[{"id":806,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/774\/revisions\/806"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/804"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}