Local Home Data for Cincinnati and Northern Kentucky

Greater Cincinnati and Northern Kentucky homes sales are still down by double digits year over year, but some positive trends are surfacing.

The Cincinnati Area Board of Realtors reported that 1,635 homes were sold in April, down 17 percent from 1,968 in April 2007. Gross volume fell 26 percent, to $249.3 million from $335.8 million, while the average sale price was down 11 percent, to $152,471 from $170,625.

The organization noted, however, that the number of home sales has risen for three consecutive months, while the inventory of unsold homes has diminished, to 9.5 months of inventory in April from 13.3 months in January.

Year to date, home closings fell 17 percent, to 5,655 from 6,805. Gross volume was down 22 percent, to $883.7 million from $1.13 billion a year ago. And, the average sale price dropped 6 percent, to $156,271 from $166,826.

Across the river, the Northern Kentucky Multiple Listing Service said 454 homes were sold in April, down 17 percent from 547 in April 2007. Total volume decreased almost 8 percent, to $77.6 million from $84.2 million in the year-ago period.

But the average sale price rose 11 percent, to $170,830 from $153,894, the multiple listing service said in a news release.

For the first four months of 2008, home sales in Northern Kentucky were down almost 14 percent, to 1,643 from 1,901 in the same period a year ago. Total volume was down 5 percent, to $284.4 million from $299.7 million, while the average sale price was up almost 10 percent, to $173,092 from $157,635.

The average mortgage interest rate in April was 6.14 percent, down from 6.33 percent a year ago, the CABR said in a release.

Oxford's Habitat For Humanity is Creating Neighborhoods!

Habitat for Humanity's plan to build 20 houses in Oxford is on track.

The Tri-State board for Habitat for Humanity has approved the plan to build two streets with 10 houses each off Oxford's Hester Road, near Wal-Mart, in an effort to bring more affordable housing to the city. Work is expected to begin in 2010 in a building blitz with each street of houses being built in one week, Habitat's Oxford branch president, Jim Lipnickey, recently told the Oxford Housing Advisory Commission.

"This is unlike anything that has been done in Ohio," said Lipnickey. "This is big for our affiliate, let alone our chapter."

The total project is set to cost around $2 million, quite an undertaking considering Habitat for Humanity chapters usually build only one house at a time.

The chapter is currently negotiating the purchase of the land. "The plan is evolving as we speak. We don't have the land, so it's not a done deal yet," said Lipnickey. If all goes as expected, the next step would be to have the subdivision approved by the city, which would take six to eight months.

"It's going to be a ton of work," said Lipnickey. "The first part is getting more people."
Good fit with city comprehensive plan

Jung-Han Chen, community development director for the city of Oxford, said Habitat's blitz fits well with the goals and objectives of the city's comprehensive plan, which includes expanding affordable housing and growing the number of homeowners.

The plan also promotes partnership between the city and nonprofit corporations and agencies to develop affordable housing opportunities, Chen said.

The Oxford chapter of Habitat for Humanity generates $13,000 a year from the mortgages of existing homes, and that money goes to build new homes. Mortgages on Habitat homes are interest-free and held by Habitat for Humanity. Families are assessed a minimum of $20,000 for the lot. This amount, plus the cost to build, equals the mortgage.

Lipnickey said he plans to go to Habitat for Humanity International for grants and help with PR for the project.

On a more local scale, the chapter also plans to send out letters to every organization in the city of Oxford, offering to give a presentation on the project, in an effort to recruit volunteers. Lipnickey will focus on building a relationship with Miami University's sororities and fraternities to sponsor some of the homes.

"It's a tremendous opportunity for volunteers," said Lipnickey. "The only thing you need to help is a heartbeat."

The foundations of the homes will be in place at the beginning of the build, and professionals will aid volunteers in building the homes from the floor up, with about 20 to 30 people working on each.

There currently are six Habitat for Humanity homes in Oxford. The Oxford Housing Advisory Commission said the 2010 building blitz fits in nicely with Oxford's bicentennial that year. Habitat also plans to build a house in College Corner this fall.

Model for other chapters?
Kate Currie, a member of the commission, said she hopes the project can be a model for other Habitat chapters.

"I think it will be a great opportunity for various organizations and members of the community to come together to work to help the citizens of Oxford find quality, affordable housing they can take pride in," Currie said.

The property for the lots is projected to cost $250,000, and the houses are projected to cost about $60,000 each. Homes will be roughly 1,100 square feet, with three to five bedrooms, depending on the size of the family.

Whirlpool Corp. provides a washer, dryer and range for every Habitat for Humanity house. These homes also will be Energy Star-rated, for an extra cost of $2,000. Homeowners will pay off this difference in about two-and-a-half years.

The families also will get $1,000 to put into the house in any way they want, excluding some things Habitat won't do - such as bay windows and garages. These houses also will not have basements; it's cheaper to build a crawl space for storage.

Habitat currently is in the process of selecting families to live in the neighborhood, and already has interviewed five prospective families. Families must fulfill three requirements to be eligible: come from a substandard home, put in 500 hours of sweat equity and be able to pay the mortgage on the home.

Ambitious Goal
• Habitat for Humanity plans to build two streets with 10 homes on each in Oxford.
• The project, which is slated to begin in 2010, still faces several hurdles.
• The chapter currently is negotiating the purchase of the land. If that goes well, it would ask the city to approve the subdivision.
• The project would cost about $2 million.

Business Courier of Cincinnati - by Kyle Zemanek Courier Contributor 5/16/08

Westwood is Looking To Re-Shape it's Community

Cincinnati's biggest neighborhood has a problem: rundown properties.

But activists got some big help from the city - $1 million to buy vacant buildings and demolish them. They now are being allowed to help decide which properties should go.

"I feel like we really can't move forward with anything until we get rid of some of these," said Jim McNulty, president of the Westwood Civic Association, the neighborhood's community council. "It's the key to everything else."

• Click through a graphic showing the doomed dozen buildings.

The goal is to knock down eyesores in high-visibility spots in favor of grass for now and, hopefully, replace them eventually with single-family homes.

The eyesores are obvious when driving along Harrison Avenue, said Councilman John Cranley, the native West Sider who led efforts to give Westwood some of the money.

"As I've said many times, you get off Harrison onto Werk Road, or Cyclorama, and there are some gorgeous homes," he said. "But driving up and down Harrison, you'd never know that. It's just awful."

He blamed lax zoning regulations decades ago for allowing many multi-family properties to crop up in Westwood.

That gave a path for developers during the 1960s and 1970s, he said, to put up apartment buildings they hoped would bring them more money than single-family homes. Westwood residents complained, cajoled and begged for years. They got four torn down by the city in 2005, and pressed for more.

Council agreed in March to give them $250,000 from a housing demolition fund and $750,000 more from one of Westwood's tax-increment-financing districts. The latter means the city gives the money up front, banking on getting it back in future tax revenue, revenue that's expected to increase over time and when the dilapidated buildings are replaced with something better.

Of the dozen suggested for demolition on the community council's original list, four already have demolition orders against them through the city's process of taking owners to court for failing to keep up their properties.

The rest are owned by private owners, companies and banks that bought the properties to protect their investments after forfeited loans.

The reasons for the upkeep failure vary, too, from aging owners to absentee landlords.
Westwood will be home starting next week to the city's latest Neighborhood Enhancement Program - City Manager Milton Dohoney's program that dedicates representatives from every applicable city department from police to buildings to a neighborhood for a 90-day focus period.
Demolitions also could come about as part of that process, too. They have in previous NEP programs.

In Westwood, where more than 36,000 people live, the housing is 60 percent multi-family. The community council would like to see a shift, to 60 percent single-family homes. McNulty thinks some upscale houses - in the $350,000 range - would be a good start to bring about what he calls a better balance to the neighborhood.

"Apartments aren't bad," he said. "I love all these four-families here - they're part of Cincinnati. But we've got to stabilize our neighborhood.

"http://news.enquirer.com/apps/pbcs.dll/article?AID=/20080510/NEWS01/805100361/-1/back01&template=printpicart-->

Cincinnati and Northern Kentucky are great places to relocate!

Greater Cincinnati and Northern Kentucky ranked 10th in the 2008 Best Cities for Relocating Families survey compiled by Worldwide ERC and Primacy Relocation. The study, released at the National Relocation Conference in San Francisco, compiled a number of factors important to relocating families for large, medium and small markets.

Pittsburgh led the large-market category, followed by Indianapolis. Columbus was seventh and Cleveland was 12th.

The study, compiled with Bert Sperling of Sperling's BestPlaces, looks at factors such as housing costs, commuting ease and access to medical facilities.

So in other words, 1) Don't take our affordable housing market for granted, 2) Show a little more patience when you're stuck in that 10 minute traffic delay tonight around 5pm on I-75, and 3) Rest assured that you or your pregnant wife will be at the hospital in "no-time" when you're ready to deliver!

The New Investors Guide to Rental Property: #1 Why should I get into landlording?

I'm still shocked at how often people are surprised by the fact that I manage rental property. They all hear the horror stories and ask me how I can handle the "stress." I've been managing properties for about 4 years and have 10 units all together.

As with every job or any hobby, it takes a little time before you get over the learning curve and the tasks involved get easier and easier. Landlording is the same way and I hate to let the secret out of the bag, but it's actually a lot easier than everyone thinks!

In this guide, I hope to provide a series of tips and strategies for investors to follow so that they can learn from my mistakes and experience.

Investing in rental property can be a very smart financial move for your overall wealth. Using the power of leverage, you can earn a larger cash on cash return when the market appreciates than with most stock market investments.

For example, you can buy a 4-family property in Reading for about $125,000. To finance this property, you'll likely need to put down 10% or $12,500. If the building appreciates 10% over the next 5 years, you'll have a gain of $12,500. This is a 100% return on the money you invested or 20% return per year.

Another great benefit is the tax write off associated with your property. You can write off the interest on the loan as well as the taxes and any business expenses that come with managing the property. The interest on a $112,500 loan for that building in Reading would be about $9600 per year. Taxes would be roughly $2,000 per year, and business expenses may be around $5,000 for the year. The total write-off would be $16,600! A sizeable savings will result.

Last but not least, you will hopefully earn some cash flow from the month to month mangement from the tenants. And as rents go up, your 30 year fixed mortgage will stay the same. So every year will get a little more profitable until you finally pay the building off. Then it's on to easy street!

Cincinnati is a great market to build a portfolio. Feel free to contact me for information on how to start your own investing and check back in the future to read more tips and techniques on how to become a top notch landlord.

City West Development has revolutionized the West End

The largest housing project in Cincinnati since World War II is on the cusp of completion.
City West, which includes 686 rental units, 211 for-sale homes, 20,000 square feet of retail space and a park on 14 acres of land, has transformed the blighted, low-income area of the West End into a mixed-income development that is breathing new life into the region.

"We have put a mark on the city of Cincinnati map," said Dale White, president/CEO of D.A.G. Construction Co. Inc., the general contractor for the project. "Crime has gone down a lot, more people are moving into that area and new houses are being sold."

Construction started on the project in 1999, with the award of $66 million in grants under the federal Department of Housing and Urban Development's Hope VI program.

"Blight, litter and crime are significantly better," said Pete Witte, a board member of the Cincinnati Metropolitan Housing Authority, which owns City West. "We scraped the earth and built all-new."

Before the City West development, the area it sits on was home to 1,800 units of public housing. The units, built in the 1940s, were outdated, with small rooms, common hallways and interior courtyards. Former Cincinnati City Council member Jim Tarbell said the tenants of those homes were economically mixed when they were built, but it devolved into mostly non-working, welfare-dependent tenants over the years.

Changed atmosphere

"City West is the most dramatic example where we are making an attempt to correct the planning mistakes we made in World War II," Tarbell said. "We're trying to compensate for those mistakes, and it's critical because of what it is, where it is and how much money was spent."

Gone are the small, cramped units, replaced with townhomes complete with separate entrances and garages accessible by a private access alleyway.

The atmosphere is changing.

"There is now a park, Laurel Park," said Lindsay Wilhelm, marketing director for D.A.G. "It was used for buying, selling and using drugs. Now it is a park where kids go out and play."

White said there is a mix of low,- middle- and high-income residents living in the development.
"The yuppies have moved in," he said. "The houses are selling at around $175,000. That's unheard of in the West End."

Tarbell said the biggest challenge facing City West is filling the retail space and having enough people living in the area to support it.

"It's drastically better than it was, but is it as good as everybody had hoped? Not yet," Tarbell said.

In the Oct. 19 issue of the Business Courier, Lou Mitch, the top local official for City West developer The Community Builders, said it was better than 90 percent occupied.

Witte said the commercial side hasn't been going as well as planned. "Once it all comes together and we fill the commercial space, it will create a good neighborhood for the city of Cincinnati," he said.

Lifestyles
• Construction on City West began in 1999 with $66 million in grants.

• Crime was a major neighborhood concern. In 1999, police got 13,559 calls. There were 932 Part 1 crimes, such as murder, rape, aggravated assault, auto theft and larceny.

• In 2007, there were 10,952 calls to Cincinnati police and only 657 Part 1 crimes, a drop of 20 percent and 30 percent, respectively.

• Commercial space houses a PNC Bank and plans call for an ice cream parlor and small grocery store.

• City West reduced the community's density to 897 housing units, down from 1,800.

Keystone Parke - New Development at the Dana Exit off I-71

As the first building in the $100 million Keystone Parke project conspicuously rises at Dana Avenue and Interstate 71, its developers hope the campus takes root at another intersection, this one theoretical: where classical and urban design meet the forward-thinking and eco-friendly approach of the Leadership in Environmental and Energy Design rating program.

"Neyer (Properties Inc.) wanted to tap into the urban Cincinnati market, and we tried to contemporize that urban setting with a campus feel," said Jason Williams, principal with PDT Architecture/Planning/Interior Design, which designed Keystone Parke. Equally important, he said, is that Neyer is seeking Silver LEED certification for all the campus buildings from the U.S. Green Building Council. Such recognition requires that buildings earn points in categories from energy and water efficiency, to sustainable construction, and use of materials and resources.

The project's master plan includes three buildings with a total 465,000 square feet of Class A offices, a four-story public parking structure and space for a restaurant and retailers. A fourth building, where the Cincinnati Area Chapter of the American Red Cross has said it will establish its headquarters, is also in the planning stages.

The entire Keystone campus is in the city of Cincinnati. It's being sold as a perfect spot for companies that don't want to leave the city yet aren't interested in being in the downtown area.

"The highway visibility and convenience to downtown is extremely important," said Bill Schneller, vice president at CB Richard Ellis, the leasing company.

The first building will house Neyer's headquarters. The four-story, 65,000-square-foot structure is the smallest on site and is street-level and approachable.

"We opened up the building so there was a connection to the park and the center courtyard in order to encourage people to get out and mingle," Williams said.

The designer "took clues" from the classical architecture of downtown, he added. The windows serve not only to make the building appear modern but also to provide natural light.
Future phases will rise higher, with the second building at seven stories, 160,000 square feet, and the third at 10 stories, 240,000 square feet. "It is that way so the eye is drawn up through the park," Williams said.

Charlie Pond, Neyer's director of building development, said the company is using recycled materials throughout construction as well as paints and coatings that contain minimal volatile organic compounds (VOCs), which have been the target of the green movement because of way they contaminate air, particularly indoors.

The green focus is largely about educating the community about efficient office construction, Pond said. "We feel this region of the country does not yet really understand how it can be done affordably."

Keys to Green
• Keystone Parke includes a landscaped boulevard, park-like area and a hiking and biking trail.

• A second building will break ground by early 2009. The schedule for future buildings will depend on the market.

• Evanston Playfield will get an upgraded swimming pool and athletic facilities.

Home-sales Slide Continues, Region in Step with the National Pace

Home sales took another deep dive across the region in March - falling nearly 20 percent compared with the same month in 2007, according to data from local boards of Realtors.
All told, 2,072 homes were sold last month in Southwest Ohio, Northern Kentucky and Southeast Indiana - a decline of 19.6 percent over March 2007 sales activity.

The region's average sale price for a home also dipped in March, dropping 3.3 percent to $164,541.

Year-to-date through the end of March, home sales were down 17.1 percent and the average price dropped 4.7 percent to $165,281, compared with the same period of 2007.

The local decline was in step with the national average sales pace. Sales were off 19.3 percent in March across the U.S., according to the National Association of Realtors.

The median sales price - the point at which half the homes sell for more and half sell for less - also slipped nationally last month, falling 7.7 percent, to $200,700, over last March, according to the NAR.

Locally, Greater Cincinnati saw the greatest decline in median sale price, with a 4 percent drop to $129,650 in March, according to the Cincinnati Area Board of Realtors. The local industry trade group collects data representing roughly 80 percent of the region's market.
Year-to-date through the end of March, the median sale price in Greater Cincinnati fell 6.8 percent to $123,500.

In Northern Kentucky, the median price remained relatively unchanged in March at $137,000.
Year-to-date through the end of March, the median price dropped 1.7 percent to $135,000, according to the Northern Kentucky Multiple Listing Service. Median prices were not available for the Indiana market.

Across the nation and locally, Realtors and housing officials have begun calling for home-buyer tax credit programs to help boost the slumping housing market. Despite interest-rate cuts, a new set of lending problems has emerged in some parts of the country in light of the fallout of the subprime lending crisis, NAR president Richard F. Gaylord said. "It appears there is some overreaction on the part of some lenders now in requiring higher down payment percentages than may be necessary," he said.

However, Karen Schlosser, president of Cincinnati Realtors' group, said that doesn't seem to be the case locally. However, she said, "There's no doubt that there's been a change in underwriting guidelines to correct the situation that had been occurring, and to me it's been a very responsible move on the lenders' part."

With the spring home-selling season under way, Schlosser said the local market remains favorable for buyers.

In March, the Federal Housing Administration approved new lending guidelines - raising the maximum FHA lending amount for a single-family home to $337,500 from $256,500.
"Local buyers have a threefold window of opportunity: an ample supply of homes for sales, attractive home prices and low mortgage rates," Schlosser said.

"Fence-sitters who wait too long may lose some of that opportunity."

See the original article at:http://news.enquirer.com/apps/pbcs.dll/article?AID=/20080423/BIZ01/804230377/1076

Neyer Corp. Looks to give Middletown a Makeover!

Al Neyer Inc. recently purchased a 60 acre plot along Interstate 75 in Middletown, OH. Plans are to develop up to $100 million in office space, shopping, and residential properties. The acerage is located in the Renaissance district of Middletown, across Union Road from the new Atrium Medical Center.

Al Neyer has already sold about eight acred to Herry McClain Cos., who is a developer with interests in building a 100-bed assisted living facility in the area.

Keep an eye out for this area's emergence.

Seriously?!?! The Banks Project in Cincinnati is for real?

Ground has been broken on The Banks, an 18-acre, $600 million mixed-use development on the Ohio River in Downtown Cincinnati. The initial part of the project’s first phase consists of about 300 apartments and 70,000 square feet of retail and restaurants; construction is scheduled for completion in 2010.

A spokesperson for the project told CPN that there is no retail preleasing yet, and that the retail will focus on “eatertainment” and on support retail for the residents.

The Banks’ master developer is Riverbanks Renaissance L.L.C., a joint venture of Carter & Associates Commercial Services L.L.C. and The Dawson Co., both of which are headquartered in Atlanta. The two companies will also handle project management for the construction of additional public infrastructure. The $74 million needed to finance Phase 1A will be provided by a $40 million senior debt financing commitment from National City Bank, a $10 million debt financing commitment from the Cincinnati Equity Fund, $12 million in equity funding led by Carter, Dawson and their investors, and $12 million in grant funding from the City of Cincinnati and Hamilton County for the residential portion of the project.

Subject to contingencies, the second part of Phase I will include an office building of at least 200,000 square feet and possibly a hotel. The private investment for phase 1B is estimated at about $75 million. Although the particulars of subsequent phases remain flexible, they could total 1 million to 1.8 million square feet of apartments and residential condos; 200,000 to 1 million square feet of office space; 200,000 to 400,000 square feet of restaurants, bars, and other retail; hotel development of 200,000 to 400,000 square feet; and parking for nearly 1,800 cars.

The Banks also includes a 40-acre riverfront park that will include playgrounds, a 12-acre “great lawn,” walking and biking paths, gardens, and a promenade overlooking the entire park. A focal point of the area is the existing National Underground Railroad Freedom Center, a museum and educational center.

The entire site is bookended by Cincinnati’s two major stadiums: the Bengals’ Paul Brown Stadium, which opened in 2000, and the Reds’ Great American Ball Park, which opened in 2003.

CPN reported in February that, according to a report by Property & Portfolio Research Inc., Cincinnati has one of the country's highest major market office vacancy rates. An 11 percent increase in office construction in Cincinnati this year should add 1.8 million square feet to the city's office space supply, pushing the office vacancy rate to about 20 percent by the end of 2009.

Tale of the Madisons (Madisonville and Madison Place)

We all know the Madisonville area from the terrible riots that occurred several years ago. But that history is long gone and Madisonville is quickly becoming one of the strongest neighborhoods poised to take off in the next several years!

Madisonville is tucked right in between Mariemont, Oakley, and the tip of Hyde Park. I can't think of a neighborhood with better neighbors! Outside of it's close proximity to these highly desired communities, the architecture is very similar to the homes found in Hyde Park, Mt. Lookout and Oakley. So once rehabbers run out of inventory in Oakley, they'll strongly start targeting the Madisonville area.

The area most likely to see the quickest growth will be the South East portion of Madisonville. All of these homes are within a 1/2 mile walk to Mariemont Square (which is absolutely incredible). Several of the homes are already well maintained but you can find distressed properties in the area ranging from $20,000 - $80,000. This affordability will draw in the young professionals who will help to shape and revitalize a once unpopular neighborhood.

Lastly, there is some strong development occuring on Red Bank Road, the western border of Madisonville. A new Super Walmart is being built, the Oakley Drive-In has been converted to a luxury Dog Spa and Medical Office Space, and Miller Valentine will be developing the area where the old Nu Tone plant used to operate (http://cincinnati.bizjournals.com/cincinnati/stories/2007/06/18/daily42.html?from_msn_money=1).

Just East of Plainville Road in Madisonville is an area called Madison Place that has already seen a lot of investor activity and above average growth. This area is within easy walking distance of Mariemont Square and the homes are primarily simple starter homes. Madison Place is known already as the place to buy for Mariemont Perks without the Mariemont Price.

Both neighborhoods are worth checking out for Investors or Owner Occupied Buyers. Feel free to contact me for any additional information regarding these neighborhoods as I'm excited to see them take off!

New Development Plan for a 36 Acre Parcel near Cincinnati Airport!

After landing two of Northern Kentucky's largest development projects in 2007, Al Neyer Inc. is expanding its Riverview Business Park in Hebron by adding 35 acres to the 101-acre park it opened in 1998.

The downtown-based real estate developer paid $320,000 for a former horse farm adjacent to its hilltop property northeast of the Cincinnati/Northern Kentucky International Airport, a deal that roughly doubles the 36 acres still available in the park. By incorporating design elements that evoke a residential feel, including a decorative stone wall at the entrance and a one-acre lake, Neyer has attracted a cluster of foreign-owned companies that made Riverview Business Park their U.S. headquarters.

"It was designed as an upscale business park," said David Neyer, president and CEO of the family-owned Al Neyer Inc. "The people we were trying to get were those companies that would favor higher-end amenities."

New to the neighborhood in 2007 were Psion Teklogix Corp., a Canadian company that sells mobile computing systems, and Mauer USA, a German firm that specializes in plastic injection molding. Three of the seven companies that located in the Riverview park were German-owned, while a British firm that moved to the park in 2000 was later replaced by trade-show display company Opera Portables Inc.

"It's developed into a nice, small niche business park," said Dan Tobergte, president and CEO of Northern Kentucky Tri-ED, the economic development arm for Boone, Kenton and Campbell counties. "Its location is very accessible. Its price point is reasonable, in the $90,000 an acre range. It's a very natural setting, preserving as many trees as possible."
Psion Teklogix and Mauer were among Tri-ED's 20 largest expansion projects in 2007. Psion's 60,000-square-foot facility represented a roughly $6 million investment and holds about 150 employees in sales, accounting and technical support. The company makes scanning devices and RFID equipment, which are used to track packages and inventory.

"It has quite a different look and feel than most industrial parks," said Tony Condi, director of marketing for Psion Teklogix. "All the buildings back here are very eye-catching."

See the Full Article at: http://cincinnati.bizjournals.com/cincinnati/stories/2008/04/07/focus1.html?f=et177&b=1207540800^1614502&ana=e_vert

FINALLY - The Banks Project is Underway

It took 11 gold-painted shovels, two boxes of gold-colored hard hats, dozens of dignitaries, fireworks, speeches and a lot of dirt, but the physical birth of the Banks riverfront development finally occurred Wednesday.

The shovels hit the earth at 4:40 p.m. for an event nine years in the making - the ceremonial groundbreaking for a project that many thought would never happen.

"Looking out upon you and this gorgeous sky and these wonderful surroundings, I hope you will forgive me for reverting to one of my former professions," said Gov. Ted Strickland, a former minister. "This is the day which the Lord has made, let us rejoice and be glad in it. You can feel the energy in this place!"

See the full story here: http://news.enquirer.com/apps/pbcs.dll/article?AID=/20080403/NEWS01/804030316/1077/COL02

Xavier University Parents - Buy a Rental Property for your Kids!

I've come to realize that it's tough for parents to find information on how to find and buy a rental property for their kids to live in while they attend college. I wanted to publish an article for parents of Xavier University bound students to help guide them through the process and to promote the benefits of buying a rental property instead of paying a landlord. Above is a map of the greater Xavier University area with my recommended neighborhoods shaded in red. These neighborhoods have affordable homes, are safe, and although might not be next door to campus, will be quite reasonable for your children to occupy. As you search for listing at my website, http://www.cincyforsale.com/, or any other MLS site, compare the location of that Norwood, Evanston, or Avondale property to the above map. Seeing the neighborhood in person is of course the best way to determine if it's the right fit, so feel free to contact me for any showing needs.

If you're unsure about whether buying a home is the right move for you, consider these points.

• It's a Great Investment

If you purchased a $150,000 property and put down 20%, you'd have a monthly mortgage payment of roughly $750, including taxes and insurance. A 3 bedroom property will house two non-related students over three years of school who will be happy to call you landlord. The average rent per student in the area is $450/month. By collecting $900 per month, you'll cash flow $250.00 per month on the rental. At the end of 3 years of ownership, you will have cash flowed $9000 and paid down your mortgage by $4,496. You will also benefit with a $7250 tax write off from the mortgage interest, saving you up to $2000 per year on your taxes. The area has appreciated 3% per year on average for the last 20 years. You can expect your $150,000 home to be worth $163,500 when you sell. In the end, you'll have $17,996 of equity in the home, have saved $6,000 on your taxes, and cash flowed $9000 for a total monetary gain of $32,996. Sounds a lot better than wasting over $16,000 in rent for your child over their college career. (This does not take into account additional costs for utilities, your exact tax bracket, cost to maintain the property... but you get the point)

• Your child won't be living in a "dive"

College campuses are known for having poorly maintained rental properties with unsafe and unsanitary conditions. I know I got sick a lot more in college due to the sanitary conditions than I do now. Not only will your child appreciate the home, but so will you when you visit!

• It will teach your child responsibility

A child who has a link to the ownership of a property will take care of the property much more than they would a rental. You'll be surprised how your child will become your right-hand-partner to assist in maintaining the property. It will teach them responsibility and help prepare them to become a future homeowner themselves.

I currently live about .2 miles from campus and am surrounded by Xavier students. I know the area very well and will be happy to assist you in finding the right property for your son or daughter. If you're a first time investor, I do have several properties of my own that I manage and will be happy to assist you in getting your rental property up and running. Thanks and go Musketeers!

Xavier University is Truly Developing in Norwood, OH

Just when you think Norwood can't possibly take on another development, Xavier University has planned to expand it's own reign over the area by expanding to the east with a new development called Xavier Square. Quickly becoming the most predominant university in Cincinnati, the 20 acre development will truly bring a new sense of life to the campus. The Xavier Square development is a joint venture between the Xavier University and Corporex Companies. Xavier Square, also known as East Campus, will consist of :

• 120,000 Square Feet of Office Space



• 100,000 Square Feet of Retail



• 90 Room Boutique Hotel



• 550-600 Student Apartments



• 120 Market Rate Houses



• A New University Recreation Center, Bookstore, and Health Center

The development will be located on the corner of Dana Avenue and Montgomery Road, right on the edge of Norwood. The development will be located directly across from the neighboring suburb of Evanston. 7 of the 20 acres was donated by BASF Chemical Plant to the school after a fire forced the company to relocate. The Zumbiel Packaging Plant moved to Hebron, OH in 2004 and sold the 9 acre property to Xavier.

Demolition should begin in 2008 and the first phase of building will begin sometime around the first of 2009. Living only 5 blocks from the Xavier Campus, I'm truly looking forward to the change. The Xavier campus unfortunately borders an area of distressed and occasionally boarded up homes in Evanston. The real estate is prime for student housing, but there is an above average risk of vandalism and crime that keeps students and owner occupied buyers away. Hopefully this change will be the start of a residential renovation surrounding the development that will bring about families and young professionals to the area.

Cincinnati Suburb Spotlight: Hyde Park Real Estate Market

About 100 years ago, several prominent businessmen came together to create a community in Cincinnati that would be geared to a higher class of people and have a reputation of an exclusive area. These businessmen planned to screen all residents looking to build in the community and deem only those found to be suitable for the area, permission to build a home. Houses would be showcases of grand scale and luxury and the businesses would remain small and quaint. The overall goal was to bring the reputation of the famous Hyde Park area in New York, to Cincinnati.

A century later, Hyde Park still honors many of the principles it's designers had intended. The homes are still well maintained and much of the beauty still remains within both the homes and the tree lined streets. Residents include doctors, lawyers, presidents of companies and civic leaders. The retail in Hyde Park remains small and full of character.

Combine those factors with Hyde Park's low crime rate and its proximity to major arteries such as Interstate 71 and Columbia Parkway, and the east side neighborhood becomes an attractive location for single people and families, middle and upper class. A special charm like many city neighborhoods, the boundaries of Hyde Park are loosely defined. Though the city considers Ault Park to be in Mount Lookout, Hyde Park considers this jewel of a park to be its own.

Picturesque Hyde Park Square is more than the neighborhood's business district. It is the heart of Hyde Park. The square itself - a grassy, bench-lined park with a fountain at the center - is on Erie Avenue between Edwards and Michigan roads.

Lining the streets around the square are banks, dry cleaners, salons, exclusive clothing shops and gourmet food stores. The area is in constant activity. People jog through the square, families walk the sidewalks with strollers and dozens of others window shop as they eat ice cream from the Graeter's store on the square. The Echo, a diner that has served home-style cooking for 50 years, is considered an institution even beyond Hyde Park. Increasingly, those who shop at the boutiques and dine at the microbrewery (it's in a renovated bank and is aptly named Tellers) and other restaurants are from outside the neighborhood. Many patrons also are visitors who had heard about the square, either from friends or staff at the downtown hotels.

In the last three years, the businesses on the square have spent $2.5 million in renovations. At least 60 percent of the businesses are sporting fresh paint jobs, and the park in the square has gotten a makeover, with flowers and trees. Stability is a plus. Another attractive aspect of Hyde Park is the stability of the neighborhood, where homeowners are almost guaranteed to turn a profit when they sell. In 1990, the median home value was $132,099. According to the Cincinnati MLS, the median sales price in Hyde Park in 2007 was $295,000.

The only downside to owning a home in Hyde Park is the house will not be a new structure with modern amenities. You have to like old houses, you have to like hardwood floors and high ceilings, because BY and large, if you're going to come to the area, you're going to have an older home. The residential values are good, and they keep appreciating. Though it is often regarded as an oasis for wealthy people, Hyde Park is more than an upper-class community. Granted, there are secluded, sprawling million-dollar homes lining Grandin Road and surrounding streets. But the more visible - and accessible - parts of Hyde Park are filled with older, two- and three-story homes with porches, detached garages and hardwood floors. The combination of classes contributes to the neighborhood's appeal.

Some Other Quick Tidbits about Hyde Park:

* Hyde Park is part of the Cincinnati Public School system and includes a Montessori school - Clark Montessori School, 2 Catholic schools - St Mary's and Summit County Day, and one other private school in the area - Springer School and Center.

* Hyde Park is a strong rental market for young professionals and professionals families with short-term stays in Cincinnati. As a result, a large portion of young professionals buy their first home in Hyde Park or the surrounding areas.

* Investment properties in Hyde Park are abundant but hold a premium price for the location and appreciation capability. It's rare to find a multifamily property that allows for immediate cashflow with less than 10% down. It is also difficult to find investment properties to "flip" as so many investors watch the area that most good deals breed strong competition.

* Arthur's Restaurant is a hamburger joint right off of Hyde Park square on Edwards Avenue. It has the best hamburger that I have ever tasted.

Southeast Norwood is the next Hot Neighborhood in Cincinnati!

Well, not the entire city of Norwood. But there is a 1 ½ square mile area south of the Norwood Lateral, West of I-71 and East of Montgomery Road that is creating quite a buzz for investors and homeowners in the area. According to the Cincinnati Multiple Listing Service, properties in this area of Norwood have appreciated by 45% over the past 7 years. That’s more than double the average appreciation for Cincinnati as a whole.

There are three main reasons why Norwood is seeing a sizeable increase in home values and experiencing a transition from blue-collar town to a desirable community for young professionals.

The first reason is Norwood’s great location. Norwood’s eastern neighbor, Oakley, experienced rocket appreciation during the early 2000s. Home after home was being renovated and sold for big bucks. The longtime dark shadow of Hyde Park was now becoming a hot neighborhood on it’s own. Today home prices in Oakley more resemble those in Hyde Park. The average sale price in Oakley was just over $190,000 in 2007. As a result, first time homebuyers are having trouble keeping up with the rise in home prices for this area and are slowly moving to more affordable alternatives. Southeast Norwood borders Oakley to the left and Hyde Park to the north. Southeast Norwood is about as far from Oakley Square and Hyde Park square as the neighborhood of Mt. Lookout. It also has easy access to I-71 and I-75 via the Norwood Lateral.

The second reason for Norwood’s success is it’s aggressive move towards commercial development. The city has aggressively marketed the town to developers resulting in several projects taking place; i.e. Rookwood Development (Rookwood Mall and Rookwood Commons), Surrey Square (located on Montgomery Road in the heart of Norwood), and Linden Pointe (just north of the Lateral, west of Montgomery Road). These developments are bringing more jobs and retail to the area and with that comes tax dollars for the city.

The third reason that Southeast Norwood is a hot neighborhood is because it contains beautiful streets with beautiful homes. The same home styles that you’ll find in Hyde Park and Oakley are also abundant in Southeast Norwood. Century old two and three story homes with tons of character are regularly being renovated and sold between $200,000 and $300,000. This area is ripe for both investors and homebuyers.

So next time you look for properties in Oakley and Hyde Park, be sure to add Southeast Norwood into your search.

5 Common Myths About Buying Foreclosures in Cincinnati

Since I began working with foreclosed properties a couple years ago, I’ve come across several myths that buyers and investors tend to believe. Hopefully this article will put five of the most common myths to rest and educate you about buying foreclosures.

1. The amount paid at the Sheriff’s sale matters. A Sheriff’s Sale is a public auction of real property which takes place at the end of the foreclosure process. When payments have not been made, the lender files suit in Superior Court to terminate the property owner’s rights of possession so that the lender may sell the property to recover its loss. If the lender prevails, the Court then directs the Sheriff to schedule the property for sale. The lenders will generally not let their foreclosed properties sell for less than what is owed to a public buyer. The majority of properties that go into foreclosure are worth less that what is owed on the home, either due to deterioration or over-borrowing on the equity. At the time of the auction, the lender’s representative is instructed to bid up to a certain price, usually above what is owed on the property. Sometimes that representative has an “upset” price, which is the maxmimum price that the lender is authorized to bid. This amount is announced by the lender’s representative to keep the lower offers out of the bidding process, keep the purchase price down, and save on commissions to the sheriff. Rarely are these final bids an indication of what is owed on the property, what the property is worth on the market, or how much the bank has in it.

2. The bank does not know the condition of the property (a.k.a. the bank doesn’t know how much I have to put into it to fix it up). The banks is very aware of the condition of the property. When a property is taken back by the bank, it goes through a thorough process to determine the condition and value of the property. Two or more real estate agents tour the property and complete a report for the bank. This report indicates any repairs needed to bring the property into good condition, a Comparative Market Analysis indicating value, and several pictures. Appraisals can also occur to help the bank determine the home’s value. The bank knows when homes need bath and kitchen renovations, they know about the roof leaks, and they know about the structural issues. In order for me to do my job, I want the bank to price their properties as accurately as possible. Why would I not report to them all the problems that would bring about a more accurate listing price?

3. You should lowball the bank. You SHOULD NOT lowball the bank. The banks go through an extensive process to accurately value their homes. You should treat a foreclosure home just like any other home on the market. The banks price their homes where they expect to receive an offer. Lowballing the banks should be looked at the same as lowballing a normal seller. If we think that $100,000 home should be sold for $50,000, we’d have recommended a list price of $54,900 in the beginning.

4. The bank will not care if I fix it up the property before the closing. This is a common myth that can get you into a ton of trouble. Not only are you violating laws by trespassing and modifying property that you do not own, you are also at risk of causing damage to the house. It’s common for accidents to happen and causing a fire to a house you don’t own can land you in a ton of trouble. At the same time, lender owned properties are known for having title defects that prevent them from closing. You may find yourself in a situation where you put time and money into a home that you are unable to purchase. Lastly, it puts the agent at risk of being fired by the lenders. Not only should buyers avoid working on the home prior to purchase, but they are also not to be visiting the property without an agent’s supervision. So think twice before you decide to attempt to work on a property prior to closing.

5. You can’t negotiate with the bank. Actually, you can! Banks will negotiate prices, closing dates, payment of closing costs, and have even compensated buyers for termite treatment. And since bank owned properties are strictly sold AS-IS, you should never expect for repairs to be made.

New Construction is Experiencing Rough Waters...

A great article came out today in the Cincinnati Business Courier about the Builders in the Cincinnati marketplace. We all know that Real Estate is down across the country and about 2% here in Cincinnati. But revenue reported by the top 25 New Construction Builders in the area has dropped 25% since 2006! Several new builders came into the Cincinnati market when the boom first began. The cost for land in Cincinnati was significantly less than most major cities in America. Currently, these builders are doing anything they can to survive. Beazer homes announced that they were pulling out of the Cincinnati Market last week. Ryan and Ryland homes have both pulled out of several communities in the area and stopped their plans to expand into new areas in the upcoming months. Major staff cuts have occured and builders have moved away from staffing every community with a sales rep. There are 4 builders in the area that have reported revenue increases. Towne Properties has made their revenue through income producting properties. Ashley Construction and Robert Lucke Homes have ventured into commercial construction and home renovations. Drees Homes is looking to stand out from the pack by marketing their homes as Energy Star Efficient. The Building Community expects sales to continue to be low throughout the rest of the year but are looking for for the tide to turn in 2009.

Thank Goodness We Live in the Midwest

Over the past 2 days, the rain has pounded the Cincinnati area causing my car to get dirty and my dogs to excitedly bring mud into the house several times a day. As much as I hate the rain, it is the perfect time to go house shopping!

I don't know how many times I've heard stories about buyers moving into their new home and after the first major rainfall, they realize that they bought a home with water intrusion issues. "Can we sue the seller? Can we sue the agent? Can we sue the home inspector?" they always ask. Well in order to win any kind of judgement against any of these parties, you would need to prove that the party had knowledge of the severe water intrusion issue and did not disclose it. That is never an easy task.

Anyways, a day of heavy rain will not only tell you if there are water issues in the basement but also if there are any issues with the gutters, roof, and grading around the house. If there is an issue with any of these areas of a home, it can be very costly for the new buyer. So next time you hear of a big storm approaching, call your agent and let them know that you want to go see some property. (Just be sure not to drag mud into the homes.)