Factor in financing to see your actual return on invested capital in Ottawa.
$
$62,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$70,000
$62,500 down + $7,500 closing
Monthly Mortgage
$1,222
on $188K loan
Monthly Cash Flow
$-439
after all expenses
Annual Cash Flow
$-5,272
before taxes
Cash Flow Breakdown
Monthly Rent$1,350
Less Expenses−$567
Less Mortgage−$1,222
Monthly Cash Flow$-439
Is Ottawa a Good Place to Invest in Rental Property?
Ottawa, KS has a population of 50,000 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $250,000 paired with median rents of $1,350/mo produces an estimated cap rate of 3.96%.
Property taxes at 1.38% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.5x, homes cost about 4.5 times the local median income of $55,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Ottawa is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.