So you want to buy in CLEVELAND??

So you want to buy in CLEVELAND??

Real Estate Agent · Cleveland, OH · Member since 2017 · 184 posts · 253 votes

I respond almost daily to my inbox from out of state investors interested in Cleveland. Here is my usual reply...

I self manage and do all my own renovations so I don't have any experience in dealing with outside property mgmt. In fact, I believe my numbers have worked out that well because of those factors. Many of the deals that you hear about that sound like they need their own infomercial are in areas I'd never buy and the rest are from folks like me who have boots on the ground and don't mind hard work. That's just my perspective but I'm sure there are more great deals to be had by out of state investors like yourself, especially when comparing to what you find in your home town. The property I bought for 15k wold have been condemned or torn down by many but it was a small home and didn't take much for me and my son's to make it look like new. I'm familiar with the materials I use in a rental or house flip so I don't have to rethink it every time. I keep my costs low and know how to appeal to the majority of home buyers. If I were you, I wouldn't give up on Cleveland just make sure of the neighborhood you're buying in. (44135, 44111 and 44109 are a few I like) I think it should be C class or better. Lower class properties would be a nightmare dealing with from afar. Lastly, my own personal niche is buying smaller homes built in the 40's and 50's. Houses built around here in those decades were built the best by real craftsmen and typically have hardwood floors. Anything older is gonna have maintenance issues with lath and plaster, tampered-with knob and tube wiring, galvanized plumbing and drafty windows. I look for houses that need everything because after a house is rehabbed fully, I know everything about it and all of the major systems have been replaced. Best of luck to you.

(I posted this to help guide would-be investors in the right direction. I don't do property management for others and only use my license for personal use)

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Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y

Michael, great post. I couldn't agree more about the too-good-to-be-true deals that seem to lure in so many OOS investors, who see opportunity in the low entry price and have a terrible experience 98% of the time, only to walk away with a bitter taste of "Cleveland" as a whole.

To your point @James Maradits, I think property management is inherently ill-suited to those kinds of properties/deals. The best PMs understand that managing there would be a lose-lose situation and then those investors who were sold on unrealistic premises are stuck with the PMs with the worst processes, staffing issues, etc.

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  • James MaraditsPro Member
    Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
    6y

    Well said.  I'm a lot like you in the self manage/rehab department.  

    I definitely see my fair share of "out of towners" that are (in my opinion) being mislead about what they are getting themselves into whether it is unrealistic expectations--thinking that they are getting 2012 type deals still-- or being steered wrong and buying in areas that are not as stable as they are being hyped up to be.  It seems that many are being nickel and dimed to death by property management fees and poor performance that kill a lot of 'would be' good deals as well. 

  • Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
    6y

    Michael, great post. I couldn't agree more about the too-good-to-be-true deals that seem to lure in so many OOS investors, who see opportunity in the low entry price and have a terrible experience 98% of the time, only to walk away with a bitter taste of "Cleveland" as a whole.

    To your point @James Maradits, I think property management is inherently ill-suited to those kinds of properties/deals. The best PMs understand that managing there would be a lose-lose situation and then those investors who were sold on unrealistic premises are stuck with the PMs with the worst processes, staffing issues, etc.

  • Property Manager · Cleveland, OH · Member since 2019 · 123 posts · 65 votes
    6y
    Originally posted by @Michael Kiley:

    I respond almost daily to my inbox from out of state investors interested in Cleveland. Here is my usual reply...

    I self manage and do all my own renovations so I don't have any experience in dealing with outside property mgmt. In fact, I believe my numbers have worked out that well because of those factors. Many of the deals that you hear about that sound like they need their own infomercial are in areas I'd never buy and the rest are from folks like me who have boots on the ground and don't mind hard work. That's just my perspective but I'm sure there are more great deals to be had by out of state investors like yourself, especially when comparing to what you find in your home town. The property I bought for 15k wold have been condemned or torn down by many but it was a small home and didn't take much for me and my son's to make it look like new. I'm familiar with the materials I use in a rental or house flip so I don't have to rethink it every time. I keep my costs low and know how to appeal to the majority of home buyers. If I were you, I wouldn't give up on Cleveland just make sure of the neighborhood you're buying in. (44135, 44111 and 44109 are a few I like) I think it should be C class or better. Lower class properties would be a nightmare dealing with from afar. Lastly, my own personal niche is buying smaller homes built in the 40's and 50's. Houses built around here in those decades were built the best by real craftsmen and typically have hardwood floors. Anything older is gonna have maintenance issues with lath and plaster, tampered-with knob and tube wiring, galvanized plumbing and drafty windows. I look for houses that need everything because after a house is rehabbed fully, I know everything about it and all of the major systems have been replaced. Best of luck to you.

    (I posted this to help guide would-be investors in the right direction. I don't do property management for others and only use my license for personal use)

     I totally agree with you, I also always recommend our Cleveland Price and Neighborhood Map. That helps them understand the neighborhoods and basically keep them away from the areas that will cause them headache and money lost. 

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