Long distance invest in Cleveland

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Long distance invest in Cleveland

Andrew Brown
Member since 2020 · 23 posts · 10 votes

Hi, Im a nyc resident looking to invest in single family or multifamily homes in cleveland. Max budget for home is $100k. Any realtors, and property managers i can be connected with?

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Gary Parilis
Rental Property Investor · NJ and PA · Member since 2019 · 206 posts · 105 votes
5y

I was looking in Cleveland for a while and worked with Erin Robinson as my agent. She's fairly new as an agent, but you wouldn't know it (I believe she's been an investor longer). She's super knowledgeable about the market, very helpful and responsive, very focused on the particular needs of the buyer -- and just generally a pleasure to work with. I can give you contact info. I strongly recommend her.

A note about Cleveland and why I moved on from there... Cash flow looks terrific on paper, but dig into the state of the market (e.g., on city-data.com). Population decline, jobs leaving, property values flat, high crime. And expect high turnover and be prepared for evictions, which hurts your cash flow. Everyone has their own priorities -- just choose your market carefully. In Cleveland, I'd recommend focusing your attention in C+ neighborhoods at least.

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  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    Get pre-approved with a lender sir. I know you have $100K to invest.....unfortunately "everyone else" says that as well so they feel they don't need to get pre-approved with a lender. My experience has been if you don't take the little bit of extra time to simply get pre-approved with a lender, you won't be taken seriously out there.  

    2Reply
  • Andrew Brown
    OP
    Member since 2020 · 23 posts · 10 votes
    5y

    @Brian Garlington

    Thx for reply. Any lenders you recommend I go with?

    0Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    Yes

    0Reply
  • Ricardo NavarroPro Member
    Investor · Cleveland, OH · Member since 2017 · 60 posts · 23 votes
    5y

    I’ve had some good experiences with chemical bank. The bankers name is Shawn Huss. My realtors name is jason Baran an he’s been good to work with here too. 

    0Reply
  • Gary Parilis
    Rental Property Investor · NJ and PA · Member since 2019 · 206 posts · 105 votes
    5y

    I was looking in Cleveland for a while and worked with Erin Robinson as my agent. She's fairly new as an agent, but you wouldn't know it (I believe she's been an investor longer). She's super knowledgeable about the market, very helpful and responsive, very focused on the particular needs of the buyer -- and just generally a pleasure to work with. I can give you contact info. I strongly recommend her.

    A note about Cleveland and why I moved on from there... Cash flow looks terrific on paper, but dig into the state of the market (e.g., on city-data.com). Population decline, jobs leaving, property values flat, high crime. And expect high turnover and be prepared for evictions, which hurts your cash flow. Everyone has their own priorities -- just choose your market carefully. In Cleveland, I'd recommend focusing your attention in C+ neighborhoods at least.

    7Reply
  • Andrew Brown
    OP
    Member since 2020 · 23 posts · 10 votes
    5y

    Thanks for the insight Gary! Can you give me Erin's contact info?

    much appreciated 

    0Reply
  • Andrew Brown
    OP
    Member since 2020 · 23 posts · 10 votes
    5y

    @Gary Parilis thx for the insight!! Can you give me Erin's contact info? Not sure if my last reply posted. I'm on the mobile app currently.

    Thanks

    Andrew

    0Reply
  • Gary Parilis
    Rental Property Investor · NJ and PA · Member since 2019 · 206 posts · 105 votes
    5y

    @Andrew Brown, I'll msg you

    0Reply
  • Ari Hadar
    Investor · Member since 2020 · 401 posts · 86 votes
    5y
    Originally posted by @Gary Parilis:

    @Andrew Brown, I'll msg you

    Did you invest in d neighborhoods? 

    0Reply
  • Gary Parilis
    Rental Property Investor · NJ and PA · Member since 2019 · 206 posts · 105 votes
    5y
    Originally posted by @Ari Hadar:

    Did you invest in d neighborhoods? 

    No, nothing below C+, but I found some "grade inflation" in Cleveland. It seemed like areas that are considered C+ in Cleveland might be C- in other markets. 

    0Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    As @Ricardo Navarro mentioned Shawn Huss is a great resource. I've sent sent lot's of people his way. At one point Chemical Bank was offering mortgage loans for as low as $35,000. 

    @Gary Parilis mentioned an agent in Cleveland he worked with and it sounds like he had good results with her. I referred several people to her as well but nothing ended up closing for some reason. She did indicate to me some months back that she was overwhelmed with clients and asked me to put a pause on sending her anymore referrals. I have since started referring people to other realtors in Cleveland that are able to handle the volume and those transactions have closed.

    0Reply
  • Gary Parilis
    Rental Property Investor · NJ and PA · Member since 2019 · 206 posts · 105 votes
    5y

    @Brian Garlington Interesting!

    0Reply
  • Andrew Brown
    OP
    Member since 2020 · 23 posts · 10 votes
    5y

    That's great info to know. Brian, have you experienced high turnover from renters in the area? Also hearing that Columbus could be a better alternative to Cleveland. Thoughts?

    2Reply
  • Brian Smith
    Member since 2018 · 3 posts · 3 votes
    5y

    I'm also from New York.. We recently purchased in Cleveland Heights, one of the suburbs outside of the metro area. CH offered similar cash flow with what seems like higher quality tenants. 

    We worked with Sara DiFranco as the realtor and have found a few quality vendors in the area (GC, plumbers, hvac etc). Feel free to DM me if interested in any referrals! We're still looking for a good management company but will hold off on that until the lease ends with the current tenant so we can raise the rent to cover the management fee. 

    Our lender was also great, we worked with Aaron Chapman at Security National - his team was super efficient though they only do traditional mortgages, not sure what kind of financing you're looking for. 

    0Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Andrew Brown   Uh, oh.......sounds like you are already being wishy-washy about going in to Cleveland and asking about another market now in the same thread? Just kidding, sort of. 

    :-)

    Like I said in the DM to you before sir, there's lots of "tire kickers" that ask about Cleveland, but never do anything. No disrespect, but like I said previously, once you get pre-approved with a lender you will be taken more seriously. 

    :-)      

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Andrew Brown:

    That's great info to know. Brian, have you experienced high turnover from renters in the area? Also hearing that Columbus could be a better alternative to Cleveland. Thoughts?

    It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.

    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio.

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  • Mark Welp
    Investor/Agent/CPA · Columbus, OH · Member since 2015 · 249 posts · 207 votes
    5y

    @Andrew Brown

    I invest in Columbus and Cleveland.

    I have the pros and cons in both markets. Managing the property is key in any market.

    Currently, Cleveland is more affordable and has more inventory than Columbus.

    3Reply
  • Brittany Woosley
    Real Estate Agent · Cleveland, OH · Member since 2020 · 20 posts · 27 votes
    5y

    @Andrew Brown You can definitely find solid single-family rental properties in good areas here in Cleveland within your $100k budget. Multi-family properties usually require a higher cost of entry in good areas. Once you get pre-approved (if you haven't already) you'll know which Investment strategy is best for your situation and can go from there!

    1Reply
  • Spence Kal
    Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
    5y

    @Andrew Brown

    Hey Andrew, I know a lot of people are looking at Cleveland for investment these days, it seems like a solid area for cash flow, but there are a few areas you might not want to go. I'm sure some experienced agents here can point out good spots. I just moved towards Cleveland from eastern Ohio and own a rental outside the city, and I'm also getting my real estate license. I'll connect with you and share any resources I find while getting to know the area myself as a landlord. Watch for the POS (point of sale) requirements in surrounding areas also. They stuck me with having to replace a sidewalk to keep my property up to standards, because it was 3/4" too low. It's basically a city wide HOA that makes you do certain repairs, fortunately not in the city of Cleveland I don't believe, but lots of areas around.

    1Reply
  • Daniela Andreevska
    Real Estate Consultant · Member since 2020 · 44 posts · 71 votes
    5y

    Hi, @Andrew Brown!

    Welcome to the exciting world of real estate investing. I just wanted to say that Cleveland, OH is actually one of the best markets for investing in small multifamily properties across the nation right now. Last month my team looked at nationwide data on small multifamily properties (duplexes, triplexes, fourplexes, etc.), and Cleveland came out as #7 for return on traditional, long-term rentals.

    Importantly, property prices are very affordable, which is what you are looking for. The median property price for small multifamily properties is $119k, but you can also find profitable properties under $100k. Meanwhile, the city-level average cap rate for traditional rentals of multifamily properties is 5.6%, the 7th highest across the US housing market. I know this doesn't sound like a lot, but it's important to keep in mind that this is the city average, while individual properties offer a much higher return.

    In case you might want to look into alternative markets, other locations which are great for investing in multifamily within your budget include Manchester, NJ; Fort Wayne, IN; Detroit, MI; Syracuse, NY; and Rochester, NY.

    0Reply
  • Stephen SchmittBusiness Member
    Real Estate Agent · Liverpool, NY · Member since 2019 · 111 posts · 72 votes
    5y

    @Daniela Andreevska Hello Daniela, I’m an investor and investor’s agent in Syracuse, we have single and multi family decent cash flow properties under $100,000.

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  • Daniela Andreevska
    Real Estate Consultant · Member since 2020 · 44 posts · 71 votes
    5y

    Thanks, @Stephen Schmitt. Looking forward to connecting!

    0Reply
  • Uri Gofman
    Member since 2018 · 150 posts · 200 votes
    5y

    We have been investing in the Cleveland market since 1995.  There are multiple neighborhoods and suburbs that can offer a good long term return on your investment depending on your investment criteria.  Typically the rougher the neighborhood, the higher the return looks ON PAPER.  My general experience, with some exceptions, has been that those neighborhoods come with greater turnover, less qualified tenants, and more frequent evictions.  If you're just starting, I recommend a better neighborhood with a smaller initial return.  Just look for a base hit and avoid striking out.  If you need our help, feel free to reach out and I'll be happy to discuss with you further.

    We have over 100 properties in Cleveland and Andrew Weiner at Realty Now Property Management does an excellent job with managing our portfolio.  Great communication.  

    Good luck!

    3Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y

    @Andrew Brown Cleveland is a great city for cash flow! I invest about 2 hours south in Columbus. Ive seen good cash flow there as well, but also some extreme appreciation due to the ever growing population and incoming businesses. 

    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Andrew Brown:

    That's great info to know. Brian, have you experienced high turnover from renters in the area? Also hearing that Columbus could be a better alternative to Cleveland. Thoughts?

     Hi Andrew, I think both Cleveland and Columbus have their pros and cons. You will find really good cashflow in Cleveland, you will find good cash flow and appreciation in Columbus. Check out the population trends between Cleveland and Columbus. 

    1Reply
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