Buying my first rental property in Cleveland!

Buying my first rental property in Cleveland!

Member since 2023 · 2 posts · 4 votes

Any neighborhoods you recommend focusing on or staying away from?

I plan to visit soon, but haven’t been there yet.  I would like to focus on the safer nicer neighborhoods or even cities in the Metropolitan area of Cleveland. Any advice is appreciated! Thank you.

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Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
3y

If you're not looking to invest in anything C- or lower on the neighborhood grading scale, then you can pretty much cut out anything on the East-side that is in Cleveland. Some of the suburbs South and East of Cleveland on the East-side are nice. Places like Maple Heights, some parts of Garfield Heights, Warrensville Heights, Shaker Heights, University Heights, and Cleveland Heights. The "Heights Belt" as I call them. On the West-side of Cleveland, there is more to see above the C- grade. Just basically avoid Clark-Fulton, the Stockyards, and Brooklyn Centre if you only want to see "safer nicer neighborhoods" as you called it. Some other neighborhoods like Cudell, the West Eighties, and Bellaire Puritas are nicer in some spots, but might also be worth avoiding if you're only looking for C+ or higher. You can shoot me a message if you have any other questions. Best of luck!

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  • Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    3y

    If you're not looking to invest in anything C- or lower on the neighborhood grading scale, then you can pretty much cut out anything on the East-side that is in Cleveland. Some of the suburbs South and East of Cleveland on the East-side are nice. Places like Maple Heights, some parts of Garfield Heights, Warrensville Heights, Shaker Heights, University Heights, and Cleveland Heights. The "Heights Belt" as I call them. On the West-side of Cleveland, there is more to see above the C- grade. Just basically avoid Clark-Fulton, the Stockyards, and Brooklyn Centre if you only want to see "safer nicer neighborhoods" as you called it. Some other neighborhoods like Cudell, the West Eighties, and Bellaire Puritas are nicer in some spots, but might also be worth avoiding if you're only looking for C+ or higher. You can shoot me a message if you have any other questions. Best of luck!

  • Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Hanna Faris:

    Any neighborhoods you recommend focusing on or staying away from?

    I plan to visit soon, but haven’t been there yet.  I would like to focus on the safer nicer neighborhoods or even cities in the Metropolitan area of Cleveland. Any advice is appreciated! Thank you.


     I agree with Shane here. If you're looking to invest in a much safer place, it's best to avoid the east side. I personally have 8+ units there in Cleveland and my team primarily helped me to make the managing of these properties easier. If you need help in finding a good neighborhood to start on, let's connect and discuss how I can help you out.

  • Member since 2022 · 11 posts · 7 votes
    3y

    I have properties all over NEO and help out of state investors.  There is sort of a East side/West side thing when it comes to investors that almost sounds like the rap battles of the 80's.  Yes, I am dating myself.  I find you can find good in both and really bad in both.  Having lived in many different states and cities, there are few places I have seen where you can have a really great area and go a few blocks and be in a bad area.  There are some great areas to invest and some up and coming areas.  If new to the area I highly recommend anyone to come out and take a look around themselves with someone who is familiar with the areas.  That said, most of my out of state clients do not do that.  So its good to team up with good people to help you build up a good foundation so you have the best chance of success with people and systems.  Do realize it harder to find good property management companies here, but there are some really good ones.  Do remember when you rented though and called such companies and could not get answers back on places? Try and vet them with friends help and see how good they are with returning calls and treating your friends as prospective tenants.  If out of state, try to find one that has people that can fix simple things in your investment on their staff.  You may notice in the Cleveland forum a call of investors looking for contractors.  A lot of tenant issues are not that large and can be fixed by jack of all trades people. The bigger problems will need contractors, so make sure that property manage is connected with good people.  Of find someone like me, but not me as I am way to busy, that can help you set up those teams and systems up.  Going to stop now as I am writing a book and not breaking for paragraphs or other grammatical structure and some of my old English teachers I helped invest, may read this.  Happy investing!

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Hanna Faris:

    Any neighborhoods you recommend focusing on or staying away from?

    I plan to visit soon, but haven’t been there yet.  I would like to focus on the safer nicer neighborhoods or even cities in the Metropolitan area of Cleveland. Any advice is appreciated! Thank you.

     Buy everywhere, except stay away from props off Superior east of Eddy Rd, and certain areas down Harvard and Miles, However do not even attempt to if you do not have a team in place, it will not end well. Also you need to ( to get the best deals ) be cash.  

    Good luck 

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y
  • Member since 2022 · 14 posts · 4 votes
    3y

    I am not familiar with Clevland, Ohio. Would you consider Michigan?

  • Jack KrusinskiBusiness Member
    Realtor · Cleveland/Akron OH · Member since 2019 · 147 posts · 93 votes
    3y

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Jack Krusinski:

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 


     we are buying everything we can in parts of East Cleveland as we know whats coming. Already have an 80 unit there that we are now turning down 3 x what was paid with about 270k NET income . 8 years ago we were told we were crazy :) . Just bought a SF on 6th, all in 65k, rent 1250, not so bad ,

    All the best 

  • Real Estate Agent · Cleveland, OH · Member since 2020 · 67 posts · 83 votes
    3y

    Hi Hanna - here is the rough breakdown if you are looking for solid returns on a long term buy and hold investment.

    The majority of the bread and butter of CLE RE investing is on the west side. Take a look at the 44111 zip code and that will give you a great idea of the "epicenter" of the solid areas to invest in. Here are the main neighborhoods that you would want to consider investing: Detroit Shoreway, Cudell, West Boulevard, Jefferson, Bellaire-Puritas, Brooklyn and Old Brooklyn. All of these neighborhoods are labeled on google maps. These are all C/C+ class areas. With Old Brooklyn being the most desirable and having the best chance at future appreciation. 

    If you wanted to get into a little bit of a higher end neighborhood then consider Lakewood. It's a mix between B/A class. The rent to price ratio here almost matches the RTP ratio of the C class areas but the main trade off you experience with access to better tenants is that the taxes are higher. 

    As Shane mentioned- There is also the "Heights Belt" - Garfield + Maple + Warrensville Heights that essentially always have a decent single family property to pick up. You won't find multifamily properties and the houses are generally smaller (which is great for lower maintenance cost).  

    I am an investor focused agent here in Cleveland and would love to help you find a solid property to consider investing in! I also have all the resources and referrals you might need in order to make and maintain your investment

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Hanna Faris:

    Any neighborhoods you recommend focusing on or staying away from?

    I plan to visit soon, but haven’t been there yet.  I would like to focus on the safer nicer neighborhoods or even cities in the Metropolitan area of Cleveland. Any advice is appreciated! Thank you.

     Hi did you buy anything yet? I get 20 a week sent to me, still very strong market. Also there is no reason to go there. I know dozens and dozens that buy there and have never been to the house let alone the city. Just today closed on a duplex. 24 or so more this month. Strike while I can. Pricing has doubled tripled or more over the last 6, 7 8 years, 

    ALL THE BEST 

  • Member since 2023 · 29 posts · 13 votes
    3y
    Quote from @Andrew Duna:

    Hi Hanna - here is the rough breakdown if you are looking for solid returns on a long term buy and hold investment.

    The majority of the bread and butter of CLE RE investing is on the west side. Take a look at the 44111 zip code and that will give you a great idea of the "epicenter" of the solid areas to invest in. Here are the main neighborhoods that you would want to consider investing: Detroit Shoreway, Cudell, West Boulevard, Jefferson, Bellaire-Puritas, Brooklyn and Old Brooklyn. All of these neighborhoods are labeled on google maps. These are all C/C+ class areas. With Old Brooklyn being the most desirable and having the best chance at future appreciation. 

    If you wanted to get into a little bit of a higher end neighborhood then consider Lakewood. It's a mix between B/A class. The rent to price ratio here almost matches the RTP ratio of the C class areas but the main trade off you experience with access to better tenants is that the taxes are higher. 

    As Shane mentioned- There is also the "Heights Belt" - Garfield + Maple + Warrensville Heights that essentially always have a decent single family property to pick up. You won't find multifamily properties and the houses are generally smaller (which is great for lower maintenance cost).  

    I am an investor focused agent here in Cleveland and would love to help you find a solid property to consider investing in! I also have all the resources and referrals you might need in order to make and maintain your investment


     You said “you won’t find multi family in the Heights Belt”, I am considering the shaker heights area, looking at multi family for MTR around Lomond, any advice on that? 

  • Real Estate Agent · Cleveland, OH · Member since 2020 · 67 posts · 83 votes
    3y
    Quote from @Abi Horton:
    Quote from @Andrew Duna:

    Hi Hanna - here is the rough breakdown if you are looking for solid returns on a long term buy and hold investment.

    The majority of the bread and butter of CLE RE investing is on the west side. Take a look at the 44111 zip code and that will give you a great idea of the "epicenter" of the solid areas to invest in. Here are the main neighborhoods that you would want to consider investing: Detroit Shoreway, Cudell, West Boulevard, Jefferson, Bellaire-Puritas, Brooklyn and Old Brooklyn. All of these neighborhoods are labeled on google maps. These are all C/C+ class areas. With Old Brooklyn being the most desirable and having the best chance at future appreciation. 

    If you wanted to get into a little bit of a higher end neighborhood then consider Lakewood. It's a mix between B/A class. The rent to price ratio here almost matches the RTP ratio of the C class areas but the main trade off you experience with access to better tenants is that the taxes are higher. 

    As Shane mentioned- There is also the "Heights Belt" - Garfield + Maple + Warrensville Heights that essentially always have a decent single family property to pick up. You won't find multifamily properties and the houses are generally smaller (which is great for lower maintenance cost).  

    I am an investor focused agent here in Cleveland and would love to help you find a solid property to consider investing in! I also have all the resources and referrals you might need in order to make and maintain your investment


     You said “you won’t find multi family in the Heights Belt”, I am considering the shaker heights area, looking at multi family for MTR around Lomond, any advice on that? 

    Hi Abi - good point to clarify on my end - so Shaker Heights is separate from the "Heights Belt". The Heights belt I am referencing is strictly the more South/Southeast area (Garfield, Maple, Warrensville Heights)

    You can definitely find some solid multifamily in the Shaker Heights area. The only thing to consider there is that the taxes are quite high - with that being a trade-off for access to better tenants. 

  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    I recommend staying away from Cleveland. The city is in a decline. Yes, you will get cash-flow but appreciation is not great. Look into Columbus for deals that you can get 85 cents to the dollar. You will be much better off in the long run. Message me, I can tell you what areas will generally yield the best appreciation due to economic growth.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Abi Horton:
    Quote from @Andrew Duna:

    Hi Hanna - here is the rough breakdown if you are looking for solid returns on a long term buy and hold investment.

    The majority of the bread and butter of CLE RE investing is on the west side. Take a look at the 44111 zip code and that will give you a great idea of the "epicenter" of the solid areas to invest in. Here are the main neighborhoods that you would want to consider investing: Detroit Shoreway, Cudell, West Boulevard, Jefferson, Bellaire-Puritas, Brooklyn and Old Brooklyn. All of these neighborhoods are labeled on google maps. These are all C/C+ class areas. With Old Brooklyn being the most desirable and having the best chance at future appreciation. 

    If you wanted to get into a little bit of a higher end neighborhood then consider Lakewood. It's a mix between B/A class. The rent to price ratio here almost matches the RTP ratio of the C class areas but the main trade off you experience with access to better tenants is that the taxes are higher. 

    As Shane mentioned- There is also the "Heights Belt" - Garfield + Maple + Warrensville Heights that essentially always have a decent single family property to pick up. You won't find multifamily properties and the houses are generally smaller (which is great for lower maintenance cost).  

    I am an investor focused agent here in Cleveland and would love to help you find a solid property to consider investing in! I also have all the resources and referrals you might need in order to make and maintain your investment


     You said “you won’t find multi family in the Heights Belt”, I am considering the shaker heights area, looking at multi family for MTR around Lomond, any advice on that? 


     BAD Idea, SH taxes to high. I will not do anything for less then 20% net cap, cash purchase. You will not get anywhere near that in SH, or CH, BTW good luck finding a MF, no inventory. I can get them but not as easy as I used to and I have one of the larges=t networks in Cleveland, 

    Good luck 

  • Investor · Pasadena/Santa Barbara, CA · Member since 2023 · 18 posts · 4 votes
    3y

    @Hanna Faris I was also looking into Cleveland. Did you have any luck? I was interested in other parts of Ohio too, but don't know where to start! 

  • Member since 2018 · 4 posts · 3 votes
    3y
    Quote from @Bob S.:
    Quote from @Jack Krusinski:

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 


     we are buying everything we can in parts of East Cleveland as we know whats coming. Already have an 80 unit there that we are now turning down 3 x what was paid with about 270k NET income . 8 years ago we were told we were crazy :) . Just bought a SF on 6th, all in 65k, rent 1250, not so bad ,

    All the best 

     Hi @Bob what do you mean by "...as we know whats coming..." .... 8 years ago we were told we were crazy:) .... hit me up.... I would like to have a chat, call with you if possible ... fyi I am invested in that State

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @David Mugwe:
    Quote from @Bob S.:
    Quote from @Jack Krusinski:

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 


     we are buying everything we can in parts of East Cleveland as we know whats coming. Already have an 80 unit there that we are now turning down 3 x what was paid with about 270k NET income . 8 years ago we were told we were crazy :) . Just bought a SF on 6th, all in 65k, rent 1250, not so bad ,

    All the best 

     Hi @Bob what do you mean by "...as we know whats coming..." .... 8 years ago we were told we were crazy:) .... hit me up.... I would like to have a chat, call with you if possible ... fyi I am invested in that State


     There is a huge amount of " revitalization " coming, just like it did 10- 13 years ago in UC. Anyone that tells you not buy in (certain areas |) of East Cleveland simply has no idea what they are doing. 

    Good luck to you 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Abi Horton:
    Quote from @Andrew Duna:

    Hi Hanna - here is the rough breakdown if you are looking for solid returns on a long term buy and hold investment.

    The majority of the bread and butter of CLE RE investing is on the west side. Take a look at the 44111 zip code and that will give you a great idea of the "epicenter" of the solid areas to invest in. Here are the main neighborhoods that you would want to consider investing: Detroit Shoreway, Cudell, West Boulevard, Jefferson, Bellaire-Puritas, Brooklyn and Old Brooklyn. All of these neighborhoods are labeled on google maps. These are all C/C+ class areas. With Old Brooklyn being the most desirable and having the best chance at future appreciation. 

    If you wanted to get into a little bit of a higher end neighborhood then consider Lakewood. It's a mix between B/A class. The rent to price ratio here almost matches the RTP ratio of the C class areas but the main trade off you experience with access to better tenants is that the taxes are higher. 

    As Shane mentioned- There is also the "Heights Belt" - Garfield + Maple + Warrensville Heights that essentially always have a decent single family property to pick up. You won't find multifamily properties and the houses are generally smaller (which is great for lower maintenance cost).  

    I am an investor focused agent here in Cleveland and would love to help you find a solid property to consider investing in! I also have all the resources and referrals you might need in order to make and maintain your investment


     You said “you won’t find multi family in the Heights Belt”, I am considering the shaker heights area, looking at multi family for MTR around Lomond, any advice on that? 


     terrible area, whomever told you to buy in SH simply has no idea what they are doing. Taxes much to high ,and the inspectors are very difficult. If SH was the place to make money, we would have bought there over the years. Out of the 500 I have done in Cleveland NOT ONE was in SH, 

    All the best. 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @David Mugwe:
    Quote from @Bob S.:
    Quote from @Jack Krusinski:

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 


     we are buying everything we can in parts of East Cleveland as we know whats coming. Already have an 80 unit there that we are now turning down 3 x what was paid with about 270k NET income . 8 years ago we were told we were crazy :) . Just bought a SF on 6th, all in 65k, rent 1250, not so bad ,

    All the best 

     Hi @Bob what do you mean by "...as we know whats coming..." .... 8 years ago we were told we were crazy:) .... hit me up.... I would like to have a chat, call with you if possible ... fyi I am invested in that State


     Call me anytime, there is nothing I do not know about ALL of Cleveland, Happy to provide guidance. 

  • Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
    3y

    It looks like you got plenty of advice on areas to focus on. Just in general I would stay away from the bad areas since certain areas theft is a problem...how do I know that?  Been there. 

    However, more importantly is that in certain areas they have restrictions and you have to get what is called a vacant building inspection report before you sell the property which is essentially a laundry list of stuff you have to do before you sell the property (or you can have the new buyer agree to fix those things by signing a document). Bottom line is it's a pain in the butt and in some areas you have to escrow money for those items (see the escrow column in attachment below).  The picture below it's just a partial of the list that I received on a property in South Euclid.  

  • Investor · Member since 2020 · 337 posts · 213 votes
    3y
    Quote from @Randy Rodenhouse:

    It looks like you got plenty of advice on areas to focus on. Just in general I would stay away from the bad areas since certain areas theft is a problem...how do I know that?  Been there. 

    However, more importantly is that in certain areas they have restrictions and you have to get what is called a vacant building inspection report before you sell the property which is essentially a laundry list of stuff you have to do before you sell the property (or you can have the new buyer agree to fix those things by signing a document). Bottom line is it's a pain in the butt and in some areas you have to escrow money for those items (see the escrow column in attachment below).  The picture below it's just a partial of the list that I received on a property in South Euclid.  

     @Randy Rodenhouse POS if not mistaken is for outside of Cleveland for areas such us the Heights, S, Euclid, etc....no POS within the Cleveland city limits but they have Lead certification requirement. 

  • Member since 2023 · 9 posts · 0 votes
    2y
    Quote from @Jack Krusinski:

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 


     HI to clarify are you saying to stay away from "East Cleveland, Slavic Village, and South Collinwood are the main ones"?
     Mandalay Ave area? 

  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    2y
    Quote from @Melissa Brown:
    Quote from @Jack Krusinski:

    East Cleveland, Slavic Village, and South Collinwood are the main ones. Cleveland can be a tricky market because you can be in a good zip code but in a bad neighborhood. For example, the 44109 zip code has some good areas, right by Metro Health's main campus or Old Brooklyn. Then some good some not so good areas. I would recommend consulting with a property manager and real estate agent for your search. 


     HI to clarify are you saying to stay away from "East Cleveland, Slavic Village, and South Collinwood are the main ones"?
     Mandalay Ave area? 


     Be careful and understand the market that you are investing in. The neighborhoods where the numbers look crazy (25%+ cash on cash returns for buy and holds) come with an enormous amount of risks. if you have the right team in place you can succeed but it will require quite a lot of time and effort. Check the amount of times someone sells a house as well on here. https://myplace.cuyahogacounty.us/

    If the place is being sold every 1-3 years 5+ times, it clearly is NOT working as an investment. 

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Hanna Faris:

    Any neighborhoods you recommend focusing on or staying away from?

    I plan to visit soon, but haven’t been there yet.  I would like to focus on the safer nicer neighborhoods or even cities in the Metropolitan area of Cleveland. Any advice is appreciated! Thank you.


     Hanna so how many have you picked up, and hows it going? If you need anything feel free to reach out ,

  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Quote from @Hanna Faris:

    Any neighborhoods you recommend focusing on or staying away from?

    I plan to visit soon, but haven’t been there yet.  I would like to focus on the safer nicer neighborhoods or even cities in the Metropolitan area of Cleveland. Any advice is appreciated! Thank you.


     Hi Hanna, I would look to invest and stay in the west side of Cleveland. Areas like Parma, Old Brooklyn, middleburgh heights, fairview park, and olmstead falls are areas that I would personally invest. 

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