Reasonable cap rates for SFH in Euclid or Parma?

1 Reply

Hello friends,

I'm newer to the CLE market (invest mainly here in LA, where I'm based), but I know some folks who are also out of state, who've had good experiences investing in SFH in the area, so I"m looking into it. Spoke with someone recently who mentioned Euclid or Parma as possible areas to look into - what sort of cap rate would be competitive for single family homes in these areas? I am told that Euclid is a good deal cheaper than Parma, but Parma may be more stable in terms of tenant turnover. Any feedback is appreciated.

Originally posted by @Shiva Bhaskar :

Hello friends,

I'm newer to the CLE market (invest mainly here in LA, where I'm based), but I know some folks who are also out of state, who've had good experiences investing in SFH in the area, so I"m looking into it. Spoke with someone recently who mentioned Euclid or Parma as possible areas to look into - what sort of cap rate would be competitive for single family homes in these areas? I am told that Euclid is a good deal cheaper than Parma, but Parma may be more stable in terms of tenant turnover. Any feedback is appreciated.

 Rents are similar with Euclid rents probably edging Parma out just a bit. However Parma includes a larger supply of owner occupied properties than Euclid. Parma should always maintain a higher sales price than Euclid because of this. However Euclid has a ton going for it with the new Amazon fulfillment center being built there. If I was a 1st time home buyer with $120k I'd pick Parma over Euclid. If I was a 1st time Real Estate Investor with $120k I'd pick Euclid over Parma.

For some more insight into the Cleveland area you'll wanna check out The Ultimate Guide to Grading Cleveland Neighborhoods.