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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  • Allison Mueller
    Turnkey Real Estate Provider · Cleveland, OH · Member since 2017 · 52 posts · 23 votes
    7y
    Originally posted by @Steve Sherman:
    @Jay Hinrichs alrhough I haven’t been to Cleveland, but you have to do real due dilligence, before putting your money in. Cleveland, just like many other good cities, took a huge plunge during the 2007 recession. Spend at least a week there and literally drive around every neighborhood in the day and at night, to understand what’s good and what’s not and to really assess your risk tollerance. That, paired with economic statistics of the city, occupancy levels on particular blocks where you wanna buy, should help make an educated decision on this.

    Steve, that is very well said. Cleveland has many great areas and many very rough areas. The key is to find the good areas that have still not yet reached their peak 2007 market values. 

    2Reply
  • Allison Mueller
    Turnkey Real Estate Provider · Cleveland, OH · Member since 2017 · 52 posts · 23 votes
    7y

    @Jay Hinrichs Cleveland has many great areas and many very rough areas. The key is to find the good areas that have still not yet reached their peak 2007 market values. 

    0Reply
  • Bryan Blankenship
    Investor · Cincinnati, OH · Member since 2014 · 538 posts · 432 votes
    7y

    @Fernando E. We got out of the Cleveland market years ago because of the D class low end ghetto junkers...We only focus on A/B class properties in the Cincinnati/Dayton markets and not the ghetto D class junkers, that will affect the published ROI as well. But what we know from a ton of experience and empirical data....any 15 CAP in Ohio will end up being 100% fake right after that first trashy tenant destroys your building and causes $8K in repairs which wipes out 2 years of your "15 CAP" ROI. Look for real, safe CAP rates in the 7-8-9-10 range in other areas.

    2Reply
  • Spence Kal
    Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
    7y
    I live 50 minutes outside Cleveland, and used to do some construction there. The city of Cleveland is kind of a dump, and the taxes are crazy in the heights. I heard that Ohio City was offering tax breaks of no property tax for 7 years when you buy or build there. I’m not sure how much it’s built up now or what kind of neighborhood that is though, but I know a few people that bought and built duplexes and row houses there. Does anyone know if that area is worth looking into? Also wanted to ask if there are any REI group meetups around Cleveland?
    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Spence Kal:
    I live 50 minutes outside Cleveland, and used to do some construction there. The city of Cleveland is kind of a dump, and the taxes are crazy in the heights. I heard that Ohio City was offering tax breaks of no property tax for 7 years when you buy or build there. I’m not sure how much it’s built up now or what kind of neighborhood that is though, but I know a few people that bought and built duplexes and row houses there. Does anyone know if that area is worth looking into? Also wanted to ask if there are any REI group meetups around Cleveland?

    city of Portlandia did this with the Pearl district 10 year tax abatements.. started about 2005. there are probably 10 thousand new condos units built over that time through multiple glass buildings.. numerous resturants and shops etc.. totally transformed the area.

    now Portlandias version of crappy Ghetto is nothing like what you see out east.. just more like tired run down.. Old buildings many were made into lofts as well.

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  • Jad Boudiab
    Real Estate Broker · Cleveland, OH · Member since 2015 · 255 posts · 248 votes
    7y
    Originally posted by @Bryan Blankenship:

    @Fernando E. We got out of the Cleveland market years ago because of the D class low end ghetto junkers...We only focus on A/B class properties in the Cincinnati/Dayton markets and not the ghetto D class junkers, that will affect the published ROI as well. But what we know from a ton of experience and empirical data....any 15 CAP in Ohio will end up being 100% fake right after that first trashy tenant destroys your building and causes $8K in repairs which wipes out 2 years of your "15 CAP" ROI. Look for real, safe CAP rates in the 7-8-9-10 range in other areas.

     Moral of the story, don't buy D grade junkers.

    Cleveland's got many great neighborhoods to buy in, great returns, 15% return in a solid C market is do-able with some elbow grease, but don't expect 15% returns turnkey or tenant ready on the MLS in today's. We find them for clients, but they aren't always available and usually need a serious rehab then refi to accomplish that return.

    How's the Cinci market, can you accomplish over 10% without some sort of value add?

    1Reply
  • Allison Mueller
    Turnkey Real Estate Provider · Cleveland, OH · Member since 2017 · 52 posts · 23 votes
    7y
    Originally posted by @Spence Kal:
    I live 50 minutes outside Cleveland, and used to do some construction there. The city of Cleveland is kind of a dump, and the taxes are crazy in the heights. I heard that Ohio City was offering tax breaks of no property tax for 7 years when you buy or build there. I’m not sure how much it’s built up now or what kind of neighborhood that is though, but I know a few people that bought and built duplexes and row houses there. Does anyone know if that area is worth looking into? Also wanted to ask if there are any REI group meetups around Cleveland?

    Hey Spence, things have definitely turned around here in Cleveland. Of course, there are always going to be some rough areas but as long as you know your criteria and stick to it, then achieving solid returns whether buying turnkey, BRRRR, or fix and flips there are no limits. Hope that helps!

    0Reply
  • Allison Mueller
    Turnkey Real Estate Provider · Cleveland, OH · Member since 2017 · 52 posts · 23 votes
    7y
    Originally posted by @Spence Kal:
    I live 50 minutes outside Cleveland, and used to do some construction there. The city of Cleveland is kind of a dump, and the taxes are crazy in the heights. I heard that Ohio City was offering tax breaks of no property tax for 7 years when you buy or build there. I’m not sure how much it’s built up now or what kind of neighborhood that is though, but I know a few people that bought and built duplexes and row houses there. Does anyone know if that area is worth looking into? Also wanted to ask if there are any REI group meetups around Cleveland?

    p.s there are TONS of REI meetups all over Cleveland. Check out meetup and you will literally see them everywhere. Hopefully will see you at one of them!!

    0Reply
  • Spence Kal
    Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
    7y
    @Tal Tamir thanks tal that’s really encouraging! I’ll definitely check them out and hopefully make it to a few in the next month. Glad to see people investing in Cleveland I had no idea there were this many people doing that. I’m close to Youngstown and warren and it seems to just keep going downhill everywhere.
    1Reply
  • Brian Cashell
    Westlake, OH · Member since 2017 · 1 post · 0 votes
    7y
    @Jay Hinrichs I live in Cleveland. I am a contractor and new to BP. I am looking to start my portfolio but with little cash I am finding it difficult. I am also a new Realtor. A good friend of mine got me into BP and it all seems very educational but it also seems overwhelming
    0Reply
  • Allison Mueller
    Turnkey Real Estate Provider · Cleveland, OH · Member since 2017 · 52 posts · 23 votes
    7y
    Originally posted by @Spence Kal:
    @Tal Tamir thanks tal that’s really encouraging! I’ll definitely check them out and hopefully make it to a few in the next month. Glad to see people investing in Cleveland I had no idea there were this many people doing that. I’m close to Youngstown and warren and it seems to just keep going downhill everywhere.

     Of course Spence! I completely understand. It has been great on this part of the state :)

    0Reply
  • Allison Mueller
    Turnkey Real Estate Provider · Cleveland, OH · Member since 2017 · 52 posts · 23 votes
    7y
    Originally posted by @Brian Cashell:
    @Jay Hinrichs I live in Cleveland. I am a contractor and new to BP. I am looking to start my portfolio but with little cash I am finding it difficult. I am also a new Realtor. A good friend of mine got me into BP and it all seems very educational but it also seems overwhelming

     Hey Brian! Welcome to the BP community. My best advice would be to make connections with other ppl here and then stick to a few threads that are helpful to exactly what you are working to achieve. Are you looking to get into SF? MF? Commercial?

    0Reply
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