Cash flowing in Cleveland

Cleveland, Ohio
Multi-Family and Apartment Investing
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Cash flowing in Cleveland

Dennis MinaryPro Member
Homeowner · New Port Richey, FL · Member since 2025 · 23 posts · 18 votes

I have been looking to invest in Cleveland and getting feedback that the tenants don't usually pay for all utilities. It's difficult to cash flow when an investor has to pay for water/sewer expenses. Any feedback regarding that cash flow dilemma?

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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 971 votes
3mo
Quote from @Dennis Minary:

I have been looking to invest in Cleveland and getting feedback that the tenants don't usually pay for all utilities. It's difficult to cash flow when an investor has to pay for water/sewer expenses. Any feedback regarding that cash flow dilemma?


Water and sewer are definitely something you have to underwrite carefully in Cleveland, but they don't automatically kill cash flow. Many successful investors build those costs into their underwriting and purchase price. The key is buying at the right basis, verifying historical utility bills, and looking for opportunities to separately meter utilities when it makes sense. A good deal will still cash flow, even with owner-paid water, if you've accounted for it up front.

[email protected]614-418-6081
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  • Evan HoppleBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 285 posts · 420 votes
    3mo
    Quote from @Dennis Minary:

    I have been looking to invest in Cleveland and getting feedback that the tenants don't usually pay for all utilities. It's difficult to cash flow when an investor has to pay for water/sewer expenses. Any feedback regarding that cash flow dilemma?


    Investors are targeting Cleveland specifically for the cash flow. Many multifamily properties aren't separately metered for water, so it's common for owners to include water and sewer in the rent. It's rarely a deal breaker as long as you underwrite those expenses correctly.

    [email protected]614-924-8151
    Reafco Real Estate
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    1Reply
    • Dennis MinaryPro Member
      OP
      Homeowner · New Port Richey, FL · Member since 2025 · 23 posts · 18 votes
      3mo

      @Evan Hopple I have noticed with a few properties by running the numbers that the water/ sewer expenses has taken a chunk out of the cash flow. I will continue my search in a propery that provides a better cash flow cushion . 

      1Reply
  • Andrew Weiner
    Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
    3mo

    If you look at the suburbs you can charge water and sewer.

    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 124 votes
    3mo
    Quote from @Dennis Minary:

    I have been looking to invest in Cleveland and getting feedback that the tenants don't usually pay for all utilities. It's difficult to cash flow when an investor has to pay for water/sewer expenses. Any feedback regarding that cash flow dilemma?

    @Dennis Minary
    Dennis, that's a common consideration in Cleveland and other Midwest markets. Rather than looking at utilities in isolation, I'd underwrite the deal using the actual historical water, sewer, and maintenance costs to see whether the property still meets your cash flow goals. If the numbers work after those expenses, it can still be a solid market despite tenants not paying every utility.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    0Reply
  • Dennis MinaryPro Member
    OP
    Homeowner · New Port Richey, FL · Member since 2025 · 23 posts · 18 votes
    3mo
    I do agree and have been conservative running my numbers . One of the concerns is an excessive usage of water . However , I will find a property that fits my cash flow numbers.
    1Reply
  • Greg Kasmer
    Rental Property Investor · Philadelphia, PA · Member since 2021 · 782 posts · 505 votes
    3mo

    @Dennis Minary - On a quadraplex I have the water bill is consistently +/-$25 each month based the historical average of about $50-60 per unit. Are finding the water expenses much higher per unit? 

    0Reply
    • Dennis MinaryPro Member
      OP
      Homeowner · New Port Richey, FL · Member since 2025 · 23 posts · 18 votes
      3mo

      @Greg Kasmer I found duplex units on average $200 per month 

      0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 971 votes
    3mo
    Quote from @Dennis Minary:

    I have been looking to invest in Cleveland and getting feedback that the tenants don't usually pay for all utilities. It's difficult to cash flow when an investor has to pay for water/sewer expenses. Any feedback regarding that cash flow dilemma?


    Water and sewer are definitely something you have to underwrite carefully in Cleveland, but they don't automatically kill cash flow. Many successful investors build those costs into their underwriting and purchase price. The key is buying at the right basis, verifying historical utility bills, and looking for opportunities to separately meter utilities when it makes sense. A good deal will still cash flow, even with owner-paid water, if you've accounted for it up front.

    [email protected]614-418-6081
    1Reply
  • Ismael El Hamdouchi
    Member since 2025 · 68 posts · 28 votes
    3mo

    One thing I’d look at is whether utilities are simply being treated as another underwriting variable rather than a deal breaker. In some markets owners commonly cover water or sewer, so the key is whether the purchase price and rents already reflect that reality. I’d be interested to hear how local investors in Cleveland underwrite those expenses and whether they build them into their target cap rate or cash flow requirements.

    0Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    3mo

    If you're seeing issues with cash-flow in Cleveland because of water/sewer you might be running your numbers wrong or have unrealistic expectations. 

    One thing some owners do is charge a flat fee for water. Something like $50-75/Mo per tenant. 

    [email protected]614-662-1652
    Reafco - Samuel Diouf528 Reviews
    WebsiteView Page
    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3mo
    Quote from @Dennis Minary:

    I have been looking to invest in Cleveland and getting feedback that the tenants don't usually pay for all utilities. It's difficult to cash flow when an investor has to pay for water/sewer expenses. Any feedback regarding that cash flow dilemma?


     Still pretty easy to cashflow. You can still back charge tenants for water. 

    I would be more cognizant of the purchase price you are buying the property for, location, and how new the major mechanicals are. Those are more important for the overall long term health of your investment.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 534 Reviews
    WebsiteView Page
    0Reply
  • Cameron GreenPro Member
    Real Estate Agent · Cleveland, OH · Member since 2023 · 73 posts · 46 votes
    3mo

    Most Cleveland landlords keep the water and sewer account in their own name. Tenants typically have to put down around a $500 deposit just to start service, which can be a significant upfront expense. Instead, many landlords build the estimated water and sewer cost into the rent to make move-in easier and avoid service interruptions.

    [email protected]216-644-9728
    0Reply
  • Claudia Rodriguez
    Lender · Phoenix, AZ · Member since 2026 · 55 posts · 17 votes
    2mo

    I’d build the water/sewer expense into your underwriting from the beginning rather than assuming you’ll be able to pass it through to the tenants.

    I'd ask for the seller's actual utility bills for the last 12 months and calculate what that does to your NOI and cash flow. If the deal no longer works once you include the true utility expense, that may be more of a pricing issue than a utility issue.

    I’d also look at whether the units are separately metered and talk with a local property manager about what’s customary in that specific area. If owner-paid water/sewer is typical, I’d want my purchase price and projected rents to reflect that reality.

    Sometimes a property appears to have great cash flow until you dig into the expenses. I’d rather find that out before making the offer than after closing.

    0Reply
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