New CA investor looking at Minneapolis & Cleveland

15 Replies

Hi everyone - 

I'm looking to invest out of state and have am considering Minneapolis and Cleveland as potential markets. Looking at low price point multi-family properties with cash flow but I'm out of state so still learning about these markets. Does anybody have any advice or thoughts on these cities? What neighborhoods to look at/not look at? 

Also, as an out of state investor what is the best way to get contacts/realtors in the cities I am considering? 

Thanks for your input!

Suzy

@Suzy Crawford

Welcome to BiggerPockets the site I consider to be Best Real Estate on the web.

You will find a lot of great information along with good and knowledgeable

people that are willing to answer any of your questions.

As a new investor I would Check out the“Learn tab above” and download a free

copy of “The Ultimate Beginners Guide to Real Estate Investing”.

You can listen and follow the “BiggerPockets and the #AskBP podcast.

Make it Happen

Steve

@Suzy Crawford Welcome to BP! You've found the right spot for learning about RE investing.

Cleveland is a great market if solid returns are what you are chasing, you will however sacrifice the huge appreciation seen in Cali. There are plenty of folks here on BP that are active out that way and are sure to reach out to you. You have options for investing, from buying a dump and finding a contractor to rehab it, right through to fully rehabbed 'Turn Key' properties. It's up to you to choose which path (and how much effort) you want.

Reach out if you'd like to chat more specifically about areas and contacts. Good luck.

Originally posted by @Suzy Crawford :

Hi everyone - 

I'm looking to invest out of state and have am considering Minneapolis and Cleveland as potential markets. Looking at low price point multi-family properties with cash flow but I'm out of state so still learning about these markets. Does anybody have any advice or thoughts on these cities? What neighborhoods to look at/not look at? 

Also, as an out of state investor what is the best way to get contacts/realtors in the cities I am considering? 

Thanks for your input!

Suzy

 Welcome to the site Suzy. My team & I are very active Cleveland investors. Here is a Grading Scale & Map of the Cleveland Neighborhoods. I think you will find it very helpful.

I don't know much about Minneapolis however @Nicholas Varner is an agent at my company. I think you two should have a talk. As he can provide you with a very unique perspective as he has lived & invested in both Minneapolis and Cleveland. 

@Suzy Crawford Welcome to BP. THere are tons of resources already listed by people. I've worked with a few people on BP that are in the Cleveland Market, including HWPG. I have been happy with all of them. I would definately travel out there before you buy, you can be in one part of a great town go one street over and find yourself in the middle of the ghetto.

@Joel W. Thanks for the input! And yes, once I do pick a market I will definitely be flying out there before I buy. 

@Nicholas Varner Specifically, I'm trying to understand what the best areas are in each market (definitely will be digging into the map Cleveland neighborhood map @James Wise posted on here!) and what I can be expecting for cash flows. I have about $40K to put down so I'm going to be looking at lower priced properties but hoping to get some good cash flow out of them at the same time. Any advice you have on either of these markets and where I should be looking would be great! Definitely need to establish contacts as well because right now I'm only looking at properties online (i.e. Redfin)

Cleveland Rocks! 

No seriously... I'm biased, but in the right parts of town, Cleveland can be a great place for investors. In the wrong parts of town it can be a nightmare. Best to work with locals in either market that can be your eyes and ears to help you find the good deals and guide you away from the bad parts of town. I have met @James Wise and work with one of the agents in his office, @Federico Gutierrez . Can't go wrong with the agents there! 

Hey Suzy! Where are you in the Marina? I'm 0.5mi from there, on Pacific at Venice (in Venice). Very cool! I walk down to Washington all the time, and Hinano's is definitely my go-to :)

I have always bought out-of-state as well. What's your interest in Minneapolis and Cleveland? Just the price points? What price range are you thinking you want to stick to?

Hi @Ali Boone ! I'm in the Marina on Marquesas Way (Esprit) right by the water. :) I work in Venice though right off Rose and Maine. Haven't been to Hinano's yet but just looked it up and definitely want to check it out!

As for geographies, I was doing research and read up on a few real estate market articles/blogs on the site and Cleveland and Minneapolis were mentioned. They are not huge in expected growth but the price points are very attractive. For a multifamily with 25% down we are looking at max $140K price point but in these markets it doesn't seem hard to find that. Goal is good cash flow and not to bank on appreciation so that we can reinvest that cash flow into another property(s) and so on. :) 

I love it! That's my plan with properties :) And Rose and Main? I drive by there all the time. We've definitely probably passed by each other a million times without knowing it!

I'll shoot you a PM. Fun to have a neighbor on here!

@James Wise his map of Cleveland is a great high level look at Cleveland. 

If you look at the two markets, the main difference is that with 40k in cash with traditional financing for investors, you would be able to buy 2 properties in desirable areas in Cleveland and 1 in Minneapolis. Prices have moved up significantly in Minneapolis and thus I now live in Cleveland. I can get more specific with a lot of things, but I will just give you one example of a difference between the two markets: in Minneapolis to establish a rental license is $1067 with Hennepin county. Fees vary based on the situation. In most municipalities in cuyahoga it's going to be less than $100, possibly $35. There are a lot more details like this that I could go over with you if you like!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you