Cleveland Ohio market

Investor-friendly agents in Cleveland, OH

See the agents BiggerPockets members work with in Cleveland, OH.

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Michael Swan
Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
9y

Hi @Jay Hinrichs

I have 85 front doors (6 apartment complexes and 7 single family) in Euclid, Painesville, Shaker Heights, and Cleveland Heights.  Also, in about 30 days will own a 24 unit in Akron.  Right now I have Zero vacancies and am evicting two tenants.  I have owned in NE Ohio since Oct of 2014 when I purchased my first little duplex in Euclid.  My 2 latest acquisitions are a 12 unit and a 21 unit in Painesville that we purchased in October and November of 2016.

Swanny

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  • Rhiannon Then
    Investor · Mesa, AZ · Member since 2017 · 109 posts · 57 votes
    9y
    Jay Hinrichs I'm nowhere near ready to purchase out of state; we are still closing on our first investment property, but I keep hearing about Cleveland. I always have one eye on the future, and was wondering what you noticed is a sign that Cleveland is headed in the right direction? I did a crime search, and it seemed sketchy in most areas, but I looked on the MLS and prices were ridiculously low. That said, those houses could have been in crime infested areas. Ive never been to or researched Ohio, so my opinion is not based on anything substantial. Do you know anything about flooding there? I don't know Cleveland's history and am curious about where it's headed. Thanks, Rhiannon
    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Jay Hinrichs:

    Just spent a nice afternoon in Cleveland.. like what i saw of this rust belt city... looks like another one on its way up.

    Looks like we will plant some investment roots.

    Hope you enjoyed your time here! Did you see the Rock n' Roll Hall of Fame or anything else out of towners check out? If not, you might just have to come back!

    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Tom Ott  Quick trip see if u can answer Rhiannon s questions I can't 

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    3Reply
  • Bob Razler
    Rental Property Investor · Boca Raton, FL · Member since 2017 · 329 posts · 237 votes
    9y

    Hello @Jay Hinrichs !

    Like @Rhiannon Then I hear about Clevland often as a great place for cash flow.  Sadly I am biased by my image of Clevland and am having trouble feeling the love.

    Maybe, like you, I need to get up there and see for myself.

    Did you find any good turnkey operations there?

    Thanks,

    Bob

    2Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Rhiannon Then:

    Jay Hinrichs I'm nowhere near ready to purchase out of state; we are still closing on our first investment property, but I keep hearing about Cleveland. I always have one eye on the future, and was wondering what you noticed is a sign that Cleveland is headed in the right direction?

    I did a crime search, and it seemed sketchy in most areas, but I looked on the MLS and prices were ridiculously low. That said, those houses could have been in crime infested areas. Ive never been to or researched Ohio, so my opinion is not based on anything substantial.

    Do you know anything about flooding there?

    I don't know Cleveland's history and am curious about where it's headed.
    Thanks,
    Rhiannon

     Hello Rhiannon,

    I am happy you are looking into NE Ohio as it really is a growing market. My question for you is how are you doing your searches? If you look up the CITY of Cleveland you might find some very low priced homes in some higher crime areas, BUT if you expand your search to cover the suburbs you will find homes more in line with the type of investments most are looking for. There are suburbs out here that are individual cities. For example, maybe look at properties in Cleveland Heights, Shaker Heights, Euclid, South Euclid, Willowick, Eastlake, Lakewood, Bedford and Bedford Heights. These areas are close to Cleveland and considered part of the "Cleveland" market, but they are a bit more removed from the crime rates, etc. This might help find the kind of investments most out of state investors look for. 

    My suggestion to you, after expanding your area, is to look up the zip codes. Each code will have its own ups and downs, and this way you can determine if this is the place for you!

    From my experience, I have not experienced any flooding, that might be a question for someone else.

    Good luck, and send me a message with any questions.

    P.S. The CITY of East Cleveland is one to stay away from!

    4Reply
  • Darrell Shepherd
    Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
    9y

    I invest in the areas he mentioned.  Just watch taxes, they are sky high in the "heights" suburbs which skewer the landlord numbers.   Its like 4% of value each year...My county in Atlanta is more like 1%.  Crazy stuff.  Its less in other areas, but still high by my standards.

    1Reply
  • Rhiannon Then
    Investor · Mesa, AZ · Member since 2017 · 109 posts · 57 votes
    9y
    Tom Ott Thanks for all the information. I haven't done any serious searches; just a quick browse when Jay brought it up. I know very little about Ohio, so having the names of specific areas that have been successful for investor is very helpful. We'll see what the future holds. I'll contact you if I ever decide to purchase in Cleveland. By the way, I just saw Lake Erie and thought there might be a potential for flooding. Once again, me just grasping with very little prior knowledge. Thanks again!
    1Reply
  • Michael Swan
    Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    9y

    Hi @Jay Hinrichs

    I have 85 front doors (6 apartment complexes and 7 single family) in Euclid, Painesville, Shaker Heights, and Cleveland Heights.  Also, in about 30 days will own a 24 unit in Akron.  Right now I have Zero vacancies and am evicting two tenants.  I have owned in NE Ohio since Oct of 2014 when I purchased my first little duplex in Euclid.  My 2 latest acquisitions are a 12 unit and a 21 unit in Painesville that we purchased in October and November of 2016.

    Swanny

    7Reply
  • Aaron David Horton
    Palm Harbor Fl, USA · Member since 2017 · 23 posts · 10 votes
    9y

    @Rhiannon Then

    I am an investor in Cleveland, and live in China...

    I suggest beginning with the article below by @James Wise [A Bigger Pockets Moderator and the owner of Holton-Wise my Cleveland Property Management Company]

    https://www.biggerpockets.com/forums/311/topics/47...

    Cheers...

    4Reply
  • Fabio Salas
    Investor · Champaign-Urbana, IL · Member since 2014 · 84 posts · 49 votes
    9y

    @Greg Rollins This is the city I've been telling you about that I'm visiting next week.

    1Reply
  • Darrell Shepherd
    Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
    9y

    @Jay Hinrichs if you are going to be in Cleveland, let me know.  I'll fly up there and shamelessly buy you a fancy dinner for your thoughts on Cleveland.  Actually, I'd just love to hear your story and talk some shop.  I'm 100% in Cleveland now and keep a place in Shaker Heights, but still spend most of my time in Atlanta so would need a heads up to be up there if you are up for that kinda thing.

    1Reply
  • Christopher Blanco
    Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    @Jay Hinrichs Glad you liked what you saw! Let me know if there is anything I can do to help!

    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Darrell Shepherd  Kind offer.. however it was my first ever time there in Cleveland and I spent a sum total of 5 hours looking at the 10 deals I funded for my guys there.. just drive by's and very quick walk throughs.. but they are going to buy 3 to 5 a month and start building their rental portfolio.. they got hooked up with a very good property manager I checked out his operation and liked what I saw.. the owner road around with us.. I also met with  the owners of Smartland Very early for breakfast  they are a very mature company as well... Vertically integrated and multi dimensional .. Kind of were my client would like to be in 5 years..

    To me it had the look and feel of all of the mid west rust belt cities other than Detroit.. I know there are good areas and not so good areas.. One thing we talked about was POS  that's something to be concerned about when your rehabbing and unique to that area..

    So I think my client will hit his goals there, he built a team and is able to buy without using or dealing with wholesalers so that's good.. He has 2 different rehab crews that are doing his turn overs in a timely manner and his property manager is getting the stuff rented and its hitting his numbers.. he also has the ability to flip , ( remember he has known me for years so I have helped him with contacts there as well)... so he will flip out of some for money to live on while he stacks up drip income cash flow rentals..

    Frankly the same program I do for my clients in all the major cities I work in...

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    0Reply
  • Steven Aviram
    Investor · Cleveland, OH · Member since 2017 · 13 posts · 20 votes
    9y

    I am an investor in Cleveland, and also work as a project manager for an out of state investor that has rehabbed hundreds of houses in the market.  If you need any advice about areas to invest in, or anything else regarding the market, I would be happy to help you out.

    0Reply
  • Avi Garg
    Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
    9y

    @Jay Hinrichs Please share the property manager via PM

    0Reply
  • Account Closed
    Real Estate Investor · Marysville, OH · Member since 2014 · 242 posts · 196 votes
    9y

    I am exclusively investing in the Cleveland area now.  I'm at 12 units at this point after 1.5 years.  I had the same pre-conceptions about Cleveland especially since I grew up in Ohio and went to a lot of Browns games as a kid.  Cleveland the city kind of sucks.  But, Cleveland the suburbs are a lot nicer than you would probably expect.  The prices are really good (but going up) and the rental market is strong (prices going up here too though).  The thing that convinced me to pull the trigger on my first deal in the area was when I was driving around some of the suburbs with my boots on the ground agent and I realized the suburb I was in, passed the "would I feel safe / be willing to live here" test.  Many of the places I have invested in the past did not pass that test.

    (edit: That first deal I purchased for $61k was all-in for < $70k, and rents for 950/mo.  My subsequent deals have been even stronger.  All are in A or B areas.)

    2Reply
  • Federico Gutierrez
    Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
    9y

    Welcome to the party @Jay Hinrichs. Cleveland ain't so bad after all?

    0Reply
  • Joe Ventresco
    Real Estate Agent · Mantua, OH · Member since 2016 · 13 posts · 1 vote
    9y
    Michael Swan did you ever find a new PM? I saw you were looking and was curious who you ended up with. Joe
    0Reply
  • Darrell Shepherd
    Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
    9y

    @Jay Hinrichs fair enough.  Sounds like your guy is doing all the right things.  I'm looking to do more like 12-24 a year.  I'm doing all flips though.

    I've talked to Smartland.  Impressive outfit.

    The POS is a trip.  First time I ran into it I was like "wait, what?  You can't be serious"

    I like it, though.  Completely eliminates the amateur competition in the bigger rehabs.   My last two escrows were $66k and $82k.  not a good way to secure that money so you've either got to have good relationships with private lenders or a whole lotta cash to rehab biggger jobs in those areas.  I just build the extra money costs into my numbers when most people can't get the loan.

    Biggest problem I've got is getting the work done on time and budget. Story of my life it seems.

    1Reply
  • Michael Swan
    Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    9y

    Hi @Joe Ventresco,

    My PM fell in line and is doing very well now.  I will only use that PM for his specific geographical area where he has lots of connections.  We are currently selling 2 complexes.  One 8 unit in Shaker Heights and a 10 unit in Cleveland Heights.  Those two complexes we are spinning our wheels and we need to cut the fat.  Each apartment complex is a business and losing divisions of our RE business need to be cut away.

    Swanny 

    1Reply
  • Rhiannon Then
    Investor · Mesa, AZ · Member since 2017 · 109 posts · 57 votes
    9y
    Thank you Aaron David Horton for sharing. I'll read it asap!
    0Reply
  • Timothy Murphy III
    Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
    9y

    @Rhiannon Then

    There's all sorts of investment markets in the Cleveland, Ohio area, anywhere from A-F caliber neighborhoods. You should first figure out what sort of asset class you're looking to invest in and target your areas from there.

    0Reply
  • Account Closed
    Investor · Shibuya Ku, Tōkyō-to · Member since 2015 · 90 posts · 36 votes
    9y

    This is actually quite interesting.  I have a buddy from just south of Cleveland and we've been passively discussing potentially investing there as he has experience in a few flips and holds over the past 20-30 years, all of which he's long since sold out of as hasn't lived in the area in some time, although his family all still does.  But he just went back to visit a week ago for the first time in a couple years and was commented on how he was floored by how rough the city was and the crime rate, and that outside of the universities and a couple industries a lot of the city has essentially become a welfare state.  One interesting comment he did have however is that there has been an influx in migration from Asia, which I thought was interesting, not sure the reasoning behind it.  He mentioned that low income housing could be a potential play, but that's not what either of us are looking for at the moment.  Either way we've both decided to hold off and look elsewhere for the time being. 

    0Reply
  • Fernando E.
    Rental Property Investor · SF Bay Area · Member since 2016 · 234 posts · 103 votes
    7y

    @Jay Hinrichs hope you are doing well. 

    This is an older thread about a year ago, during this time your perspective with Cleveland, OH was promising / good for investors. Will very much appreciate if you can give us your current perspective on investing in Cleveland, this will help out of state investors like myself to take the plunge in this market or go somewhere else like Dallas, Texas. Thank you!

    1Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Fernando E.:

    @Jay Hinrichs hope you are doing well. 

    This is an older thread about a year ago, during this time your perspective with Cleveland, OH was promising / good for investors. Will very much appreciate if you can give us your current perspective on investing in Cleveland, this will help out of state investors like myself to take the plunge in this market or go somewhere else like Dallas, Texas. Thank you!

     I am active there.. however there are many good operators in that market.. like anything buy quality and you should be fine.. buy the cheapest properties that look best on paper and you probably going to not like what you did.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
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