35-Unt Property on LoopNet in Cleveland for $1.1M. Been posted for a year so that's probably a good sign it's a bad investment but I wanted to run it through you guys....
This would be my first MF property in OH and I am from MI so I'd have my PM company manage this property too. Speaking to my local property manager, who would also service this property - he says to stay away, that the REACs will kill you and you won't make any money. The numbers work if they're accurate, HUD pays 84% of rent and it's 100% full with a waitlist for tenancy. What am I missing here that a majority of investors would shy away from?
The fact that your PM does not want the added revenue of 35 units and warns you you will not make money I would think that would be one of the things you are missing @Val Saph
E. 85th and Superior is NOT a C-rated neighborhood. Based on any measurable data, this is D territory at best. This is in census tract 1122.00, which is one of the most blighted parts of Cleveland. This particular property is probably one of the most (if not the most) stable properties in the area, and rents in this building are substantially higher than any building around it. Having success with this type of property typically requires a highly specialized team who can navigate the [really tough] waters associated with a big old building (even one that has been rehabbed) with very low-income people living in and around it.
. I like how the front entrance has at least 3 separate signs prohibiting loitering. Ive never even seen one threatening a loitering fine before. That right there tells a story about this building.
It also says landlord pays all utilities! Bet the bills are astronomical.