Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
Hello BP!!!!
I am looking at property in Cleveland, OH. I have been told East Cleveland to stay away from. But what zip codes does that entail? is 44120 one of those zip codes that I should be avoiding?
Also, does anyone have a trustworthy contractor that can do a complete rehab for me? I will be an out of state investor, so I would need someone worthy of that trust.
44112 is East Cleveland zip code and yea you should stay away from that area because if the property you purchase becomes vacant thieves will steal everything in the house. 44120 ZIP Code is predominantly Shaker Heights and parts of Cleveland, It is a good area to invest in. There are other eastern suburbs that are good investments including 44118, 44121, 44122 and others. I own homes in these areas and do very well. don't let these other investors tell you only to invest in western Cleveland suburbs because they don't know what they are talking about. If your financial numbers are good and you carefully pick tenants you should succeed.
@Joe Martella I own houses in 44120, 44128, and 44108. All on the east side of Cleveland. Crime is all over the city. You need to decide what your risk tolerance is. What are you willing to tolerate and how are your communication skills. All of my homes will be section 8 certified. I have a section 8 tenant moving in to the one in 44108 this weekend. The east side of Cleveland is a good place to invest in section 8 housing. These people need homes so they are not usually very picky about where they live and some of them have grown up in these neighborhoods. I will not tell you to steer clear of any particular neighborhood. If the deal makes sense it makes sense. If you are worried about rough neighborhoods do not invest in Cleveland. Go into the suburbs.
Thanks for the feedback. Do you have a team that you work with over there? I was looking at a very distressed duplex where the vandals got to it. I was considering having a contractor take a look at it and give me an estimate to get it up and running again. Could get the property for $5k. and spend 20k in renovations, the property should be worth more and I can rent and hold it. It all depends on what it rough. Is it a C neighborhood or a D neighborhood? I can handle the risk of a C but a D where there are nightly shootings, I can't go to the property and I can't get a decent property manager that is what scares me.
I would only look at zip codes 44100-44109
Stay away from the East Side! I currently own one rental on the westside and have about a 27% cap rate. PM if you'd like to focus on the Westside. That's all I'm investing in.
44112 is East Cleveland zip code and yea you should stay away from that area because if the property you purchase becomes vacant thieves will steal everything in the house. 44120 ZIP Code is predominantly Shaker Heights and parts of Cleveland, It is a good area to invest in. There are other eastern suburbs that are good investments including 44118, 44121, 44122 and others. I own homes in these areas and do very well. don't let these other investors tell you only to invest in western Cleveland suburbs because they don't know what they are talking about. If your financial numbers are good and you carefully pick tenants you should succeed.
It's a bunch of nonsense that the entire east side is a war zone and the West side is the promised land. There are great and terrible neighborhoods in BOTH sides of the city.
The *city* of East Cleveland is one big war zone, but there are numerous other eastern areas and suburbs that are great to invest in, with reasonable entry points, low crime and fantastic returns.
But hey.... If everyone wants to invest in the West side, that means less competition for us east side investors, so the prices won't get ridiculous like they are on the West side right now! I sure won't complain.
Joe Martella East Cleveland and the East side of Cleveland are two different things. East Cleveland is a city that is in absolute disrepair. The city of East Cleveland actually asked the city of Cleveland to annex them, and the city of Cleveland said "ahhh, no thanks".
The East side of Cleveland is everything East of the Cuyahoga River. This includes half of the city of Cleveland and several suburbs.
If you are going to invest in a market outside of where you live, I highly advise you to go visit that market, look around with a realtor, meet some contractors, build your team and plan on making multiple return visits.
I work with a lot of out of town investors, and have seen many wanna be investors make a lot of mistakes that scared them off. I have also experienced a few out of towners who do things the right way, and achieve a lot of success.
Best of luck,
Aaron
Anything that needs a full rehab in East Cleveland you should be getting paid to take. There isn't enough equity there to cover a full rehab. There are pockets on the East side of Cleveland that area ok, but you NEED to be very careful...Most local investors are buying stuff for SUPER cheap over there.
@Kristopher Hanks...
I am responding to this thread really late,but I've doing research on East Cleveland and Dayton for possible section 8 investing. Curious to what advice you might have. Pas, etc...
@Kristopher Hanks...
sorry about the typos. Curious about PMs and just overall thoughts on the section 8 niche. I've had moderate success as a mobile hoke investor in L.A. but would like to branch out into multifamily and Ohio seems to have cheap buy in. Willing to do section 8....
sorry about the typos. Curious about PMs and just overall thoughts on the section 8 niche. I've had moderate success as a mobile hoke investor in L.A. but would like to branch out into multifamily and Ohio seems to have cheap buy in. Willing to do section 8....
Miles the 1st thing i'd recommend you do is read through The Ultimate Guide to Grading Cleveland Neighborhoods. That'll give you an overall idea for the lay of the land around here so to speak. I like section 8 for challenging areas but there are some areas of the city that are still dirt cheap & easier to handle than East Cleveland itself. I like the D-class areas of the west side for Section 8 investors.
@James Wise --
First off , thanks for replying! I read your guide to the Cleveland neighborhoods and for now it looks like, yes, the D class zip codes fit my budget and look promising for section 8 investing. I've seen some of your videos, and I like the idea you mentioned of developing a portfolio of 2-4 unit properties in this area. I think it's realistic for a newbie like me to get into the multifamily space. I'd love to keep in touch and even possibly do lunch when I come to the Cleveland area. Are these low priced homes able to be financed or are they all cash?
First off , thanks for replying! I read your guide to the Cleveland neighborhoods and for now it looks like, yes, the D class zip codes fit my budget and look promising for section 8 investing. I've seen some of your videos, and I like the idea you mentioned of developing a portfolio of 2-4 unit properties in this area. I think it's realistic for a newbie like me to get into the multifamily space. I'd love to keep in touch and even possibly do lunch when I come to the Cleveland area. Are these low priced homes able to be financed or are they all cash?
There are a decent amount of lenders who have a minimum loan amount of $50k so it isn't the easiest thing in the world but yea you can finance them. There are a select few lenders out there who will do 30 year loans as low as $25k.
I’m very concerned about the issue Home rebuilding and renting..however I believe that someone doesn’t make in the city nothing ever change. Let’s talk about join venture in Cleveland