It's decided: Cleveland or BUST!

General Real Estate Investing
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It's decided: Cleveland or BUST!

Jc M.
Rental Property Investor · Member since 2020 · 83 posts · 65 votes

I'm in California, but Cleveland is calling and I want to invest there; buy and hold. I think it has the right attributes and entry point for me as a new OOS investor and hey, why not (rhetorical, but comments welcome)? If Covid permits, my wife is good with me flying out there for a few days while she takes care of the one and three year old. Yes, she's a saint indeed.

I'd love to join a Cleveland RE investors group if they'd have me and would appreciate referrals for local real estate agents that want to work with new OOS investors looking for 1-4 unit props in B areas. I need a team for everything else too (prop mgmt, etc), but thought to start there. Pleae give me your recommendations and tank you in advance folks!

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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
6y

I think a strategy that some Columbus agents use is to set keyword alerts for Cleveland..... in hopes of ..... oh never mind😉

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  • Jc M.
    OP
    Rental Property Investor · Member since 2020 · 83 posts · 65 votes
    6y

    @Darius Ogloza, well, we can't all be Marin County. I went to Tam in Mill Valley, BTW.

    Maybe I should change the title of this post to:

    Undecided: Columbus, Cincinnati, Akron, Toledo or Bust?

    4Reply
  • Victor Vella
    Flipper/Rehabber · Cleveland, OH · Member since 2014 · 173 posts · 121 votes
    6y

    @Joseph Mah

    Hey Joseph I moved from Cleveland to LA a few months back. I lived in CLE my whole life and flipped/rented many houses there.

    There’s always a market regardless what city - at the end of the day the numbers have to make sense on the individual deal and you need to have great resources team around you.

    Feel free to connect

    1Reply
  • Uri Gofman
    Member since 2018 · 150 posts · 200 votes
    6y

    sure.  sent you a connect request.

    0Reply
  • Ron Szmik
    Real Estate Agent · Brecksville, OH · Member since 2011 · 166 posts · 75 votes
    6y

    Welcome aboard - Cleveland can be a friendly investor haven but as always there are questionable areas.  I always use the philosophy that if I can go collect rent in-person (if needed) I'm all in for that area.  Also, if my better have approves as well.  In non-Covid times we do host a monthly meet-up in Independence Ohio and post notifications on BP.  Carry on.

    Regards,

    Ron

    1Reply
  • Angela Knight
    Realtor · Cleveland, OH · Member since 2020 · 1 post · 1 vote
    6y

    @Joseph Mah Hey Joseph I’m Angela and I’m a licensed realtor here in Cleveland Ohio let me know if I can help.

    1Reply
  • Angela Ingram
    Rental Property Investor · New York, NY · Member since 2016 · 3 posts · 5 votes
    6y

    @Joseph Mah

    Hi Joseph,

    I bought my first 2 investment properties in Cleveland from out of state over the summer with the help of @Erin Dorsey Robinson. She was fantastic, would strongly recommend linking up with her.

    5Reply
  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    @Joseph Mah

    Ha.  I can throw a rock and just about hit Tam High from my front yard.

    I would really encourage you to take heed from the lesson @Cory S. imparted.  

    I spent 10 years pursuing a similar high cash flow strategy in Rochester NY - got up to 15 units - and in the final analysis I would have done infinitely better had I saved all of my ammo to buy a fixer out here in the Bay Area.  

    2Reply
  • Victor Vella
    Flipper/Rehabber · Cleveland, OH · Member since 2014 · 173 posts · 121 votes
    6y

    @Darius Ogloza

    Good point, I wish I moved out west 10 years ago. Coastal has been the place to go. But the name of the game is skate to where the puck is going....this market seems to have a vibe of affordable housing, space, yard, single family, etc... in my opinion

    Not sure about NY, but Cleveland has pockets of massive appreciation.

    Tremont, Lakewood, Ohio city - all neighborhoods of 2x-4x appreciation over 7-10 year horizon..... not sure now as I never had the stomach for the risk/reward.

    I always operate in the same market since I’m a high velocity flipper and deals exist all over the Midwest key is building relationships and trust in your market.

    1Reply
  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    I helped friends of my mine into an apartment in Ohio City back in 1987 - just a few clicks from the Westside Market.  It was the new happening thing back then.  Really sketchy on the edges.  Glad to hear things are going well over there.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Jc M.:
    Originally posted by @Account Closed:
    Originally posted by @Account Closed:
    Originally posted by @Account Closed:
    Originally posted by @Account Closed:

    Population 505k 1990 down to 381k 2019. Pass.

    I say this totally in the spirit of intra-state ribbing, but.... you're in Toledo.  How are you busting on Cleveland hahaha 

    Toledo is projected to triple in population in the next year.  

    What! Organically? Or is a prison moving there?? 

     https://www.opendatanetwork.com/entity/1600000US3977000/Toledo_OH/demographics.population.change?year=2018

    That's hilarious!

     SAVAGE!

    2Reply
  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    6y

    Here for the Cleveland jokes.

    3Reply
  • Jc M.
    OP
    Rental Property Investor · Member since 2020 · 83 posts · 65 votes
    6y
    Originally posted by @Darius Ogloza:

    @Joseph Mah

    Ha.  I can throw a rock and just about hit Tam High from my front yard.

    I would really encourage you to take heed from the lesson @Cory S. imparted.  

    I spent 10 years pursuing a similar high cash flow strategy in Rochester NY - got up to 15 units - and in the final analysis I would have done infinitely better had I saved all of my ammo to buy a fixer out here in the Bay Area.  

    Yes, all good advice. An important element for me as someone just starting out is price point. I want to start small and learn up the various processes as much as I can. I don't want to be an armchair investor.. And, while I drink from the firehouse, I defintely have it in mind to simply slow down and keep learning before deploying dollars.

    0Reply
  • Shuai Zeng
    Investor · Los Angeles, CA · Member since 2012 · 108 posts · 23 votes
    6y

    Well, my suggestion is stay out of city with "Heights". 

    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    So I’m told this neighborhood in Columbus is C-.  Looks downright pretty to me. C- in Toledo (and I’m  assuming Cleveland) looks more like this.

    3Reply
  • Jc M.
    OP
    Rental Property Investor · Member since 2020 · 83 posts · 65 votes
    6y

    @John Erlanger, it's not the ppsf that would bother me per se. It depends on the context. What might be concerning is that labor, appliances and systems e.g. furnace, water heater, etc. probably cost about the same for a $50k prop as they do for a $350k prop. The magnitude of those expenses to smaller rents makes those rents more sensitive to change.

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Michael P.

    Where’s is this?

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Joseph Mah

    Columbus or bust*

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y
    Originally posted by @Marc Rice:

    @Michael P.

    Where’s is this?

    2030 jane ave 43219 

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Account Closed:

    So I’m told this neighborhood in Columbus is C-.  Looks downright pretty to me. C- in Toledo (and I’m  assuming Cleveland) looks more like this.

     C vs C-?

    .......We're really splitting hairs here.

    0Reply
  • Account Closed
    Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    6y
    Originally posted by @James Wise:
    Originally posted by @Account Closed:

    So I’m told this neighborhood in Columbus is C-.  Looks downright pretty to me. C- in Toledo (and I’m  assuming Cleveland) looks more like this.

     C vs C-?

    .......We're really splitting hairs here.

     I think it was me that said C-.. maybe its more a low C, since I can think of areas that are worse but not a D. 

    However while I love North Linden, I dont like that Brentnel/Mock Rd/Mifflin Twp area. Just always been kind of seedy and feels more economically disadvantaged than other C type areas.

    However I do invest with a "would I live here?" mindset, since I want good quality tenants. I am sure that area would be fine as long as you buy cheap enough to offset the slightly more difficult management issues. 

    Theres also something going on with that Jane Ave building. It has been on the market for ages which is unusual for Columbus. i cant really speak intelligently about the price since I still have a pre-2020 mindset but I do feel its aggressively high for that area. 

    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y
    Originally posted by @James Wise:
    Originally posted by @Account Closed:

    So I’m told this neighborhood in Columbus is C-.  Looks downright pretty to me. C- in Toledo (and I’m  assuming Cleveland) looks more like this.

     C vs C-?

    .......We're really splitting hairs here.

     I would take a D- over an F+ in school lol

    2Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Account Closed:
    Originally posted by @James Wise:
    Originally posted by @Account Closed:

    So I’m told this neighborhood in Columbus is C-.  Looks downright pretty to me. C- in Toledo (and I’m  assuming Cleveland) looks more like this.

     C vs C-?

    .......We're really splitting hairs here.

     I would take a D- over an F+ in school lol

     That is a fair point........But I guess the real question is

    1Reply
  • Charles A.Pro Member
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    6y

    @Jc M.

    https://www.biggerpockets.com/...

    1Reply
  • Victor Vella
    Flipper/Rehabber · Cleveland, OH · Member since 2014 · 173 posts · 121 votes
    6y

    @Joseph Mah

    That’s one of the reasons cleveland is attractive, however the communities are each so different it’s important to get a pulse before you deploy capital.

    Start building relationships in two Midwest markets....

    I can tell you cleveland real estate prices are climbing and everyday I hear more about out of state investors or our out of town investors moving in because of market affordability.

    Inventory is getting bought up like crazy, retail and wholesale. That all being said high end seems to have been slowing down for a while.

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    6y
    Originally posted by @Jc M.:

    I'm in California, but Cleveland is calling and I want to invest there; buy and hold. I think it has the right attributes and entry point for me as a new OOS investor and hey, why not (rhetorical, but comments welcome)? If Covid permits, my wife is good with me flying out there for a few days while she takes care of the one and three year old. Yes, she's a saint indeed.

    I'd love to join a Cleveland RE investors group if they'd have me and would appreciate referrals for local real estate agents that want to work with new OOS investors looking for 1-4 unit props in B areas. I need a team for everything else too (prop mgmt, etc), but thought to start there. Pleae give me your recommendations and tank you in advance folks!

     Cleveland is solid for sure. Best of luck to you! 

    2Reply
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