New cash investor looking in Cleveland area

Orlando, FL · Member since 2022 · 18 posts · 10 votes

Just started looking in the Cleveland area for properties in the $75k range. Cash offers. Looking to cashflow and wanting to pick anyone's brain about experiences in the area. Or Akron and Canton. Trying to get a feel for rentability, location, etc. Would love to look to get a team together in the local area. I'm an out of state guy down in FL and the market is just ridiculous here so trying to maximize $$$ for cashflow. Appreciate any help!

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James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

Quote from @Sean Tenney:

We get tons of out of state investors coming into town looking for cashflow. You have to be cautious though. For every out of state investor coming here and killing it there is another who is losing a ton of money.

Most of the problems arise from out of state investors buying in neighborhoods thinking they are getting a C grade asset only to find out they overpaid for an F grade asset.

I suggest reading The Ultimate Guide to Grading Cleveland Neighborhoods to help you avoid some of the big risks involved in investing out here from long distance.

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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
3y
If cash flow is your goal with a budget around $75k, Canton has been great. I've got multiple properties there and have never had an issue renting them out, especially if you're considering accepting Section 8 vouchers. There's a waiting list right now that's around 2 years long from what I've been told.
[email protected]330-354-6590
Brittany Minocchi - Barrett Financial Group, LLC520 Reviews
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Sean Tenney
OP
Orlando, FL · Member since 2022 · 18 posts · 10 votes
3y
Absolutely considering Section 8. I’ve been looking into that here in Orlando, but cost is prohibitive from an entry standpoint. Have you taken advantage of Section 8? Would love to connect one off and lick your brain and learn about your experience.
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Sunny Verma
Member since 2023 · 8 posts · 8 votes
3y
Quote from @Sean Tenney:

Just started looking in the Cleveland area for properties in the $75k range. Cash offers. Looking to cashflow and wanting to pick anyone's brain about experiences in the area. Or Akron and Canton. Trying to get a feel for rentability, location, etc. Would love to look to get a team together in the local area. I'm an out of state guy down in FL and the market is just ridiculous here so trying to maximize $$$ for cashflow. Appreciate any help!

This has bob Stevens written all over this Contact Bob Stevens
He is your best guy. I’m sure he will chime in soon

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Sean Tenney
OP
Orlando, FL · Member since 2022 · 18 posts · 10 votes
3y
Thanks for pointing me in the right direction! I’ll reach out to Bob.
0 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
3y
Quote from @Sean Tenney:

Just started looking in the Cleveland area for properties in the $75k range. Cash offers. Looking to cashflow and wanting to pick anyone's brain about experiences in the area. Or Akron and Canton. Trying to get a feel for rentability, location, etc. Would love to look to get a team together in the local area. I'm an out of state guy down in FL and the market is just ridiculous here so trying to maximize $$$ for cashflow. Appreciate any help!

We get tons of out of state investors coming into town looking for cashflow. You have to be cautious though. For every out of state investor coming here and killing it there is another who is losing a ton of money.
Most of the problems arise from out of state investors buying in neighborhoods thinking they are getting a C grade asset only to find out they overpaid for an F grade asset.
I suggest reading The Ultimate Guide to Grading Cleveland Neighborhoods to help you avoid some of the big risks involved in investing out here from long distance.
2 Reply
Sean Tenney
OP
Orlando, FL · Member since 2022 · 18 posts · 10 votes
3y
Thanks so much @James Wise, I'll check it out.
0 Reply
Andrew Duna
Real Estate Agent · Cleveland, OH · Member since 2020 · 67 posts · 83 votes
3y
Hey Sean. Welcome to the CLE RE scene!

With the buying strategy you described I'm guessing you're going after section 8 properties? In my opinion ..going after smaller 3+ bedroom single family is one of the best ways to chase maximum cashflow.
Here is the rental amount calculator from the Cuyahoga metropolitan housing authority so that you can do some basic underwriting:
https://www.cmha.net/hcvp/rent...

The stated rent amount is NOT the amount you would actually receive. You should expect to receive 75-85% of the stated rent amount from the Housing Authority (which is all negotiated)
Although.... I have heard through some online s8 communities that 4+ bedroom properties are in such high demand that you might be able to expect close to 100% of the state rent amount for that zip code/bedroom combo.
In general if you provide a solid s8 rental product then the demand is through the roof. Two of my partners recently completed a basic cosmetic renovation and once listed for s8 availability they received literally hundreds of applications.

As @James Wise mentioned -- it is very important to understand exactly what areas you are getting into. In general neighborhoods on the west side of Cleveland: Cudell, West Boulevard, Brooklyn + Old Brooklyn, Bellaire-Puritas, and Clark Fulton are all decent areas to consider investing in. Maple Heights is another spot where you might expect to find a large inventory of simple single-family to pursue.
As an investor focused agent here in Cleveland - I would love to chat about the the pros and cons of CLE RE.

1 Reply
Brandon P.
Lakeland, FL · Member since 2018 · 243 posts · 148 votes
3y
Quote from @Sean Tenney:

Just started looking in the Cleveland area for properties in the $75k range. Cash offers. Looking to cashflow and wanting to pick anyone's brain about experiences in the area. Or Akron and Canton. Trying to get a feel for rentability, location, etc. Would love to look to get a team together in the local area. I'm an out of state guy down in FL and the market is just ridiculous here so trying to maximize $$$ for cashflow. Appreciate any help!

Talk with @Joshua Janus and @Remington Lyman for Ohio.
Are you investing in Florida at all? If so, I would love to help you.
2 Reply
Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
3y
Quote from @Sean Tenney:

Absolutely considering Section 8. I’ve been looking into that here in Orlando, but cost is prohibitive from an entry standpoint. Have you taken advantage of Section 8? Would love to connect one off and lick your brain and learn about your experience.

Yes we have - it's great having most of the rent guaranteed to hit your account around the 1st every month, but the tenants tend to come with their own set of challenges from my experience. Sorry I didn't reply sooner, I didn't get notified of a response on my comment. Feel free to reach out!
[email protected]330-354-6590
Brittany Minocchi - Barrett Financial Group, LLC520 Reviews
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Bryan WalshPro Member
Contractor · Strongsville, OH · Member since 2018 · 10 posts · 1 vote
3y
If you are looking for a quality contractor in the cleveland area that understands investment budgeting or if you are looking for eyes on the ground, dm me!
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