Cleveland multi family

[Robert Arquilla]

Hello bp, 

So I've been on bp on and off for awhile now while in college, however I should be graduating in the summer and getting a job finally. I've really wanted to get into multi families in Cleveland or Warren  Ohio where I currently live. I'm just hoping someone familiar with the area can give me some tips. I've listened to a lot of the pod casts and done some researching of my own and it seems in Cleveland and Warren there are some pretty cheap multifamilies. Most of these seem to meet the 2% rule or more and I just keep thinking I'm missing something because people talk about how deals are hard to find.  I'm interested in areas like Lakewood and shaker heights. I know the taxes are higher in these areas but seems to be fairly good neighborhoods for the most part. So I'm hoping you guys can give me some past deals and what expenses are more hidden that I should be taking into account when evaluating these properties, as well as other good neighborhoods to look into. Thanks!

[James Wise]

Originally posted by @David Lawrence:

Hi All, I realize this thread is quite old but figured I would see if there is still interest in the topic. I am an out of state investor currently looking into the Cleveland market and trying to understand its current health from a multi-family perspective. As I am new to the area, I would like to get some good macro data on Cleveland (i.e. vacancy, employment, MF supply/demand) as well as more neighborhood specific data to determine where best to start hunting for properties. I have a connection that recently gained accessed to a number of off-market properties for sale (approx 350 units spread across multiple buildings from 8 to 50 units each). I think there could be some opportunities in there but want to make sure the long term outlook for the market is solid. Would you recommend I connect with a broker to get this kind of detailed market research or some other resource? How would you go about finding a good MF broker in the Cleveland area?

I've read there is a record number of new apartments coming online in 2nd half of 2019 which is concerning (50% of which is located in downtown Cleveland) as, it would seem to me, that these new properties will provide steep competition for renters and make existing older buildings less attractive places to rent (driving vacancy up and rents downward). I got my data from the free report by Yardi Matrix on Cleveland (a quick google search will find it if you are interested). What do you think about this upcoming supply? Will demand keep up or is this a true negative for all MF in Cleveland? 

Would love any thoughts or ideas you might have. Thanks!

Dave give The Ultimate Guide to Grading Cleveland Neighborhoods a read. Should have a ton of info that will be helpful to you.