Investing in Cleveland, OH

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Investing in Cleveland, OH

Ivan Franco
Member since 2019 · 21 posts · 1 vote

Hi Everyone,

I'm an aspiring investor living in San Diego, CA looking to buy rental properties in Cleveland, OH. I'm posting this in the forum in hope of connecting with some of Cleveland's local players. I've tried to get in touch with some agents in the area and so far no one has responded to my emails, which led me to write a post here. I'm mainly looking to get connected with agents as a starting point in forming a network in Greater Cleveland but I also wouldn't mind any referrals to/from property managers.

A little about myself… I don’t have any investing experience though I’ve been reading everything I can about the subject and have just about completely cut music out of my life to listen to podcasts whenever I can for about a year now. I believe I’ve reached a point where I’m ready to jump in. It doesn’t make much sense for me to invest in San Diego at the moment so I’m looking out of state. I’m not sure if it’s a good idea to post how much money I have in a forum, but as far as capital goes, I have enough for a down payment and renovation for a property in the East Cleveland area, I have no debt, a healthy credit score, and add money to my savings at a rate of about $1000/month.

I know there are some areas in Cleveland that I’m going to want to stay out of as a first-time buyer so I’m turning to the forums for some guidance.

Any help would be greatly appreciated!

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Brian Garlington
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
6y

Ivan,

I used to be stationed in San Diego back in the day. The reason why agents out there are nt getting back to you is there are a LOT of tire kickers that reach out to them that never ever do anything. 

I was in the same boat intially. I know of an investor friendly agent out there that also owns properties out there. 

First thing they all want to know is if you are pre-approved if you say no....the conversaton pretty much stops. As an FYI I know a lender out there who will do mortgages on properties for as low as $40,000. 

There's a lot of people that say......"I don't need a pre-approval.....I'm paying cash." The agent says....show me proof of funds. The buyer says....send me a bunch of properties first.....agent send them properties,,.....and then..........nothing.

Let them know you are serious with a timeframe of WHEN you will buy.

As for neighborhoods, I'd try to stay away from the "D" and "F" neighborhoods. "C" neighborhoods seem to be a good sweet spot where you can maximize cash flow and still not be in a war zone. 

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Todd Pultz:

    @Ivan Franco I love seeing new investors get the courage to jump in! Best of luck to you! Cleveland can be a solid market, but depending on what your open to investing in there are lots of opportunities in Ohio. I am an investor, Agent, Property Manager in Dayton, OH. I would be happy to chat about Dayton, Cincinnati, Columbus or Cleveland with you. DM me

     How do you like the Dayton market?

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Todd Pultz
    Rental Property Investor · Dayton, OH · Member since 2019 · 293 posts · 440 votes
    6y

    @Remington Lyman I love it, still plenty left in a market that doesn’t take crazy spikes one way or the other. I love the city

    1Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    Thank you @Jacob Repreza for the heads up! I’ll keep that in mind; it did feel a little sketchy to be considering those low price point areas. I’ve been delving more into specific neighborhoods to get a better understanding of them and I think I’m starting to hone into a few.

    Sorry for the slip up in terminology, I'm glad you understood what I meant! I'm thinking for my first deal I'll definitely stick to the eastern regions. I've been seeing some interesting-looking opportunities in Euclid, South Euclid, and Cleveland Heights. From what I can tell, those look like pretty solid B class areas, and I'm seeing what look like potential BRRRR deals that I might be able to use a construction-to-refi loan on. Though if I'm being honest, I'm a little skeptical of those deals. I've been analyzing a lot of deals lately, but it feels a little bit like there's something I'm missing. Maybe it's just a lack of confidence but I'm sure I would discuss those types of things with an agent before buying anyway just to be sure we're on the same page.

    But thank you again!@Jacob Repreza

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    @James G.

    That’s a fantastic solution to the low commission problem. It’s great that things can be flexible and adaptable to suit your particular niche!

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    Thank you @Orlando Perez! That’ll be super helpful!

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    Thank you @Todd Pultz! That’s a great offer. I’ll be sure to DM you!

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    Thank you @Samantha McDougal! That’d be very helpful!

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y


    @Cynthia Marie Destine-Pierre

    I think it’s really great and inspiring that you own a nonprofit in Cleveland even though you’re from New York. I’ve never been to Cleveland but that’s also how it seems to me. I’ve been focusing my research on those exact areas you mentioned, they seem like great up-and-coming neighborhoods. Cynthia, if you don’t mind, what areas are the transitional homes for your nonprofit located? I ask just so I can get a clearer picture of the city.

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    Hey @Larry Hunt, we should definitely talk! I'll DM you!

    0Reply
  • Account Closed
    Rental Property Investor · Cleveland, OH · Member since 2018 · 61 posts · 27 votes
    6y

    Hey @Ivan Franco , I am currently living in Cleveland, west side to be exact but about 15-20 min from east side.

    Currently house hacking a duplex in Old Brooklyn. Lots of SFH in this area that could be purchased and renovated. Blue collared neighborhood that are primarily renters. Check out old Brooklyn and surrounding neighborhoods as it is very close to the city center and Lakewood (probably best rental area in Cleveland as of now).

    I also manage a quadplex east of my current duplex. Let me know if I can help in anyway

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    6y

    @Ivan Franco the last thing you need is a realtor.  All the have is what is listed.   I have done about 500 deals out there for about 30 mill used a realtor maybe for 10 deals when I 1st started . They sell you and move on. They do not have any vested interest in you. You need a team, connect with those that do deals weekly, PM in place,nothing, I mean nothing for you to do.  . 10 -14% net caps are to be had with equity

    Good Luck 

    1Reply
  • Ceasar Cifuentes
    Carlsbad, CA · Member since 2018 · 11 posts · 12 votes
    6y

    @Ivan Franco. Lol East Cleveland is one of those areas! West Cleveland (west of downtown) is where u want to focus.

    1Reply
  • Ceasar Cifuentes
    Carlsbad, CA · Member since 2018 · 11 posts · 12 votes
    6y

    @Ivan Franco. Also be aware of their high property tax. Starting at 2.6% property tax can eat into ur cash flow. Ive seen properties at $400k with $10,400 annual property tax. Cincinatti offers a little lower property tax rate.

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    6y

    @Ceasar Cifuentes how many props do you have in Cleveland ?  Also not a correct statement to only focus on west side. 

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    6y
    Originally posted by @Ceasar Cifuentes:

    @Ivan Franco. Lol East Cleveland is one of those areas! West Cleveland (west of downtown) is where u want to focus.

     Well, the city of East Cleveland is its own city and yes, most investors just stay away from there. That is why people on the Eastside are focused on Euclid, Cleveland Heights, Shaker Heights, Bedford, Maple Heights, etc. If they have a POS, it is not that difficult to work with. 

    The Westside of downtown is nice but it is also so "up-and-coming" you end up often over-paying or entering a bidding war just to get a house that needs a full rehab. Moving a little more out to the suburbs is great for long-term investments. 

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    That's very interesting @Account Closed. I've been focusing in the areas east of Cleveland but I'll look into Old Brooklyn. Thank you for the tip!

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    @Bob Prisco, I've actually found a property I think would be a good purchase. However, I'm still in the process of getting pre-approved. I'm sure I'll get my pre-approval early this coming week but I'm worried the deal might get snagged if I wait too long. If I wanted to make an offer right now without an agent, how would you suggest I do that? Also, if I'm a buyer, would there really be any disadvantage in using an agent? It might be helpful to have some local insight and someone looking out for me rather than just myself.

    0Reply
  • Ivan Franco
    OP
    Member since 2019 · 21 posts · 1 vote
    6y

    @Ceasar Cifuentes, I know East Cleveland is an area to stay away from at this time but there's lots of places east OF Cleveland that would be great to buy in. The west side of Cleveland may have appreciated too much for me. I'm sure there's lots of opportunities to be had but it may not be as easy to make properties in that area cashflow and I may have to tie up more capital into an investment than I might otherwise need to in buying something on the east side. At least that's how it seems to me

    0Reply
  • Cynthia Marie Destine-Pierre
    Real Estate Agent · Brooklyn, NY · Member since 2020 · 6 posts · 2 votes
    6y

    East side can be pretty rough. Lots of drugs and areas no one should be in on the east side. But it will take a few investors to come clean it up. It's so bad on east side that I didnt see many cops at all when i went down there a few times. If you want to see it virtually like actually being there. Get the app deal driven just signed up for the free trial today and it is a pretty cool tool. It's like you are really driving there. But u need to add the virtual tour part so u can feel like ur actually there. I like that little tool. I was driving in Cleveland today with it. 

    1Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    6y

    @Ivan Franco you 100% do not need an agent,complete waste of time . I have flipped about 500 props to all OOS investors, not one used and agent. All you need to do is connect with those that are experts ,and let them handle all for you . But you are not anywhere near ready, 

    All the best  

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    6y

     The west side of Cleveland may have appreciated too much for me. I'm sure there's lots of opportunities to be had but it may not be as easy to make properties in that area cashflow and I may have to tie up more capital into an investment than I might otherwise need to in buying something on the east side. At least that's how it seems to me

    @Ivan Franco you really need to connect with those doing deals vs analyzing..... Its all about knowledge and your team. Also its best that you are cash. 

    Good luck   

    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    6y

    @Cynthia Marie Destine-Pierre you really need to learn about the Cleveland markets , your statement is not correct. I assume you mean EAST Cleveland not east side ?  Even parts of East Cleveland I buy and own props, on /near Coventry rd . East side is Euclid, N Collinwood, CH, you 100% buy there, prices have doubled in the last 4, 5 years

    Good Luck 

    0Reply
  • Cynthia Marie Destine-Pierre
    Real Estate Agent · Brooklyn, NY · Member since 2020 · 6 posts · 2 votes
    6y

    @Bob no sorry I meant East Cleveland not east side. Yes very true Euclid, north Collingwood are very nice areas.

    0Reply
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