Any thoughts on investing in Cleveland or Detroit?

Question

Trying to gain peoples outlook on investing in distressed areas in Cleveland or Detroit?  Does anyone know any hot areas in these cities that will produce cap rates of 10% or more?

Chris Vincent · Answer

@Brandon Sturgill Thanks Brandon I understand the risk in chasing Cap Rates but there is an area in every city that is a sweet spot.

Alex Khan · Answer

@Chris Vincent

Distressed but on the comeback of Detroit areas has been pretty lucrative for many people.

You have to do your research and stay on top of the deals to find the best deals in Detroit.

Main thing is location location location.

Each block and neighborhood is different in Detroit but can be very lucrative.

The properties posted in the “Hot”  areas do not last longer than a week but do come by often.

You don’t want to blindly invest in any neighborhood.

Close as possible to downtown, hospitals and universities are prime areas to invest in.

James Wise · Answer

1st thing I recommend doing when looking at Cleveland is reading The Ultimate Guide to Grading Cleveland Neighborhoods that will show you the varying neighborhoods we've got around here. General rule of thumb for Cleveland or any market is that the higher the cap rate the more risk that is involved in the area.

Chris Vincent · Answer

@James Wise great recommendation for info pertaining to Cleveland. Would.love to touch base with you via email

Chris Vincent · Answer

@Ryan Evans HEY Ryan thanks for sharing would you mind providing the areas that are on the rise in Detroit?

Ryan Evans · Answer

There are quite a few areas around town where you can clear 10%. I'm under contract on a nice little 13 cap SFR in Cleveland proper that I bought off the MLS. The "hot" areas you're not going to see those kinds of numbers, but they're not necessarily hard to find either.

@Rik Patel it is a strong rental market here. There is a slight population decline which is nothing new, but there is also a lot of industry growth and parts of town where people are moving to. Just gotta know where to look!

Rik Patel · Answer

Why does Cleveland have a declining population? From what I read, there is a strong rental market there? @Brandon Sturgill

Brandon Sturgill · Answer

@Chris Vincent chasing cap rates in cities with declining populations will come back to bite you. There is more to investing than ROI...

Any thoughts on investing in Cleveland or Detroit?

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