Looking for help understanding Cleveland heights

26 Replies

Hi all,

I would like to put an offer down soon a specific property in cleveland heights, Oh. I have a few reservations about it, mainly the high tax rate and rental estimation. The rental estimation is just above the mortgage, tax, and insurance costs put together and I am confused. It looks like a really beautiful house 

I could use some help to work through the possibilities. My parents are not the best at property investment so I could really use some guidance. 

I appreciate any help.

Thank you.

Originally posted by @Jesse Farquhar :

Hi all,

I would like to put an offer down soon a specific property in cleveland heights, Oh. I have a few reservations about it, mainly the high tax rate and rental estimation. The rental estimation is just above the mortgage, tax, and insurance costs put together and I am confused. It looks like a really beautiful house 

I could use some help to work through the possibilities. My parents are not the best at property investment so I could really use some guidance. 

I appreciate any help.

Thank you.

 Cleveland Heights is an amazing city. There are tons of cool little neighborhoods that are boom (Coventry, Cedar-Lee, Cedar-Fairmount) It is also really close to University Circle. That is where the Cleveland Clinic is located which is the largest employer in the state of Ohio. 

Yes, the biggest downside to Cleveland Heights is that the taxes are a bit higher. Some were recently reassessed and lowered, but others stayed the same. The key is to make sure your property is renovated VERY nicely. This way you can rent it out for $1,100 or more. That area calls for high rents if the property is nice enough.

@Jesse Farquhar Hi Jesse, i think we need a bit more information to analyze what youre saying but to give you a blanket statement, cleveland heights is a nice city. they do have high taxes but the rental market here is stable and brings in a good rental amount. Im not sure what type of house youre looking at or its condition but ive rented houses here above $1500/month. Look into the other downsides of cleveland hts before you make your decision though such as POS.

Originally posted by @Jesse Farquhar :

Hi all,

I would like to put an offer down soon a specific property in cleveland heights, Oh. I have a few reservations about it, mainly the high tax rate and rental estimation. The rental estimation is just above the mortgage, tax, and insurance costs put together and I am confused. It looks like a really beautiful house 

I could use some help to work through the possibilities. My parents are not the best at property investment so I could really use some guidance. 

I appreciate any help.

Thank you.

 Cleveland Heights is a pretty nice neighborhood. Tenant base is very manageable and the POS keeps the condition of the properties up rather well. Those taxes are pretty darn high tho. That is definitely a downside but the rents are arguable higher in Cleveland Heights for a similar product then most surrounding areas. Take a look at The Ultimate Guide to Grading Cleveland Neighborhoods for some more info on Cleveland Heights and surrounding communities.

Originally posted by @Suny Capezzuto:

@Jesse Farquhar Hi Jesse, i think we need a bit more information to analyze what youre saying but to give you a blanket statement, cleveland heights is a nice city. they do have high taxes but the rental market here is stable and brings in a good rental amount. Im not sure what type of house youre looking at or its condition but ive rented houses here above $1500/month. Look into the other downsides of cleveland hts before you make your decision though such as POS.

Hi Suny,

I am looking at a 3 bed 2 bath single family home with a detached garage, that looks fully renovated (dont have more info on it). It has a great looking backyard that has a park behind it. It is almost 1,800 sqf as well. the estimates that i have received from my property manager show that it can get 1300/ month for rental but due to the taxes i dont see this as a great investment. If i could get 1600/ month i could be tempted... This is my first investment so i am unsure about the possibilities. 

Suny, i dont know the rules here, but can i see your property in the area to get a comparison?

Thank you everyone for responding. I really want to enter this market because i see some promise in this neighborhood, but i am not getting clear answers from agents at this point in time.

Originally posted by @James Wise :
Originally posted by @Jesse Farquhar:

Hi all,

I would like to put an offer down soon a specific property in cleveland heights, Oh. I have a few reservations about it, mainly the high tax rate and rental estimation. The rental estimation is just above the mortgage, tax, and insurance costs put together and I am confused. It looks like a really beautiful house 

I could use some help to work through the possibilities. My parents are not the best at property investment so I could really use some guidance. 

I appreciate any help.

Thank you.

 Cleveland Heights is a pretty nice neighborhood. Tenant base is very manageable and the POS keeps the condition of the properties up rather well. Those taxes are pretty darn high tho. That is definitely a downside but the rents are arguable higher in Cleveland Heights for a similar product then most surrounding areas. Take a look at The Ultimate Guide to Grading Cleveland Neighborhoods for some more info on Cleveland Heights and surrounding communities.

 Hi James,

thank you for the Guide to the Neighborhoods. i am going to keep grinding to get information on my possibilities in the area. I still find it confusing with some mediocre houses up for rent at 2.5k/ month and then a great looking house for 1.2k. 

Originally posted by @Jesse Farquhar :
Originally posted by @James Wise:
Originally posted by @Jesse Farquhar:

Hi all,

I would like to put an offer down soon a specific property in cleveland heights, Oh. I have a few reservations about it, mainly the high tax rate and rental estimation. The rental estimation is just above the mortgage, tax, and insurance costs put together and I am confused. It looks like a really beautiful house 

I could use some help to work through the possibilities. My parents are not the best at property investment so I could really use some guidance. 

I appreciate any help.

Thank you.

 Cleveland Heights is a pretty nice neighborhood. Tenant base is very manageable and the POS keeps the condition of the properties up rather well. Those taxes are pretty darn high tho. That is definitely a downside but the rents are arguable higher in Cleveland Heights for a similar product then most surrounding areas. Take a look at The Ultimate Guide to Grading Cleveland Neighborhoods for some more info on Cleveland Heights and surrounding communities.

 Hi James,

thank you for the Guide to the Neighborhoods. i am going to keep grinding to get information on my possibilities in the area. I still find it confusing with some mediocre houses up for rent at 2.5k/ month and then a great looking house for 1.2k. 

 Location, Location, Location.

As everyone else has said, Cleveland Heights is a solid (to say the least) area with better kept properties, great location, higher rental rates, etc.  The downside will be the taxes, but with that being said the rental rates should help and the area seems well suited for appreciation.  According to Zillow the median house price increased ~8% in the past year.  With the strength of Cleveland Clinic and attractiveness of the area the location is definitely well positioned. 

A few more points to add on Cleveland Heights, in addition to what has already been mentioned...

1) Though there's not really any 'bad' part of Cleveland Heights, there is definitely quite a range in caliber depending on specifically where in the city you are. There are 20 different census tracts in the city of Cleveland Heights, with median HH income ranging from a little over $30K/year at the low end (in 1410.00, one of the tracts bordering East Cleveland), up to almost $125K/year at the high end (in 1414.00, the wealthiest part, where grand 1920s mansions line the postcard-worthy streets off of Fairmount). Home ownership rates, education levels, etc. vary considerably from tract to tract as well, so there are some areas within this city that could reasonably be graded as low as 'C' territory, and others that could land in 'A' territory (and plenty in the middle 'B' range). Don't make the mistake of thinking that a duplex on Nela View or Belmar is going to land you in the same risk level as a house on Marlboro or Arlington. (If you want to see a map that I've created that grades each census tract in Cleveland Heights, and every other city in Cuyahoga County, feel free to send me a private message.)

2) There are some parts of Cleveland Heights that are assigned to East Cleveland schools rather than Cleveland Heights - University Heights schools. Though this is not necessarily a deal-breaker, it tends to be looked at as a negative by many, since East Cleveland schools are arguably the worst ranked public school district in the county. (This does not mean you can't have success with a property in EC schools... I actually do own a house in Cleveland Heights but in the EC school district, and I have a great tenant who has lived there since 2012.)

3) Your annual CH rental permit/registration will cost you an EXTRA $100 (each year) if you don't live in Cuyahoga County. (So $300/year in total for the registration for a single family house.)

@Jesse Farquhar I can share some of my rental photos as well as some other rentals in the area that have rented for above $1500-feel free to send me a message. Cleveland Heights has pockets there are areas that are superior over others in Cleveland Heights just like any other neighborhood this can range due to dependence on what school district they attend (I think part of Cleveland Hts attends East Cleveland schools which are F rated) or due to proximity to amenities (we have Coventry Rd and Lee Rd here that offers some restaurants, bars, etc that are more of the "hip" areas. I would agree with your property manager about rental estimates but of course they probably did give you a safe to median high number as there is always the possibility of getting more depending on what type of niche you target. Another great thing about Cleveland Hts is that we are close to JCU & CWRU - I attended JCU and rented a house with 3 other girls, each of us had to pay $500/month so thats $2000/month just for that landlord and its a crappy house! lol.

Originally posted by @Robert Matelski :

A few more points to add on Cleveland Heights, in addition to what has already been mentioned...

1) Though there's not really any 'bad' part of Cleveland Heights, there is definitely quite a range in caliber depending on specifically where in the city you are. There are 20 different census tracts in the city of Cleveland Heights, with median HH income ranging from a little over $30K/year at the low end (in 1410.00, one of the tracts bordering East Cleveland), up to almost $125K/year at the high end (in 1414.00, the wealthiest part, where grand 1920s mansions line the postcard-worthy streets off of Fairmount). Home ownership rates, education levels, etc. vary considerably from tract to tract as well, so there are some areas within this city that could reasonably be graded as low as 'C' territory, and others that could land in 'A' territory (and plenty in the middle 'B' range). Don't make the mistake of thinking that a duplex on Nela View or Belmar is going to land you in the same risk level as a house on Marlboro or Arlington. (If you want to see a map that I've created that grades each census tract in Cleveland Heights, and every other city in Cuyahoga County, feel free to send me a private message.)

2) There are some parts of Cleveland Heights that are assigned to East Cleveland schools rather than Cleveland Heights - University Heights schools. Though this is not necessarily a deal-breaker, it tends to be looked at as a negative by many, since East Cleveland schools are arguably the worst ranked public school district in the county. (This does not mean you can't have success with a property in EC schools... I actually do own a house in Cleveland Heights but in the EC school district, and I have a great tenant who has lived there since 2012.)

3) Your annual CH rental permit/registration will cost you an EXTRA $100 (each year) if you don't live in Cuyahoga County. (So $300/year in total for the registration for a single family house.)

 Curious about #3, do you have to pay a permit for a rental property? 

Thanks.

Originally posted by @Suny Capezzuto:

@Miguel Nava I just got a bill after my tenants moved out because they put "too much" trash out. Bill was $770. They even took pictures LOL. It really wasnt even a lot of trash.

Did you own the property in your personal name or in an LLC? Typically we see the fines are lower if the property is owned by a person rather than an LLC.

Originally posted by @James Wise :
Originally posted by @Suny Capezzuto:

@Miguel Nava I just got a bill after my tenants moved out because they put "too much" trash out. Bill was $770. They even took pictures LOL. It really wasnt even a lot of trash.

Did you own the property in your personal name or in an LLC? Typically we see the fines are lower if the property is owned by a person rather than an LLC.

I own the property in an LLC so that is unfortunate :(

Originally posted by @Suny Capezzuto:

@Robert Matelski Thats awesome! Nice to meet a fellow alumni (: I went from 2013-2017. How about you?

Awesome, yes, it is great meeting fellow alumni, especially since it's a small and pretty close-knit school! But... I feel super old now LOL... I was there 1997 to 2001 =)

Originally posted by @Suny Capezzuto:
Originally posted by @James Wise:
Originally posted by @Suny Capezzuto:

@Miguel Nava I just got a bill after my tenants moved out because they put "too much" trash out. Bill was $770. They even took pictures LOL. It really wasnt even a lot of trash.

Did you own the property in your personal name or in an LLC? Typically we see the fines are lower if the property is owned by a person rather than an LLC.

I own the property in an LLC so that is unfortunate :(

Yup that's why the fine was so high. Cleveland is like that as well. I believe a $50 trash fine for an owner occupied property in Cleveland is $500 for an LLC lol.