Anyone investing In Cleveland, OH?

General Real Estate Investing
5yFollow

Anyone investing In Cleveland, OH?

Elias Munoz
New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes

I’m new to real estate and been looking for my first out of state investment property. I been doing some research in what states are better for cash flow properties and it lead me to Cleveland, OH. Maybe I’m wrong and would be helpful if anyone could point me to the right direction. I would really appreciate it. If you’re investing in this area shah neighborhoods do you recommend?

1Reply
47 views

Most Popular Reply

James MaraditsPro Member
Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
5y
Originally posted by @Mike D'Arrigo:

@James Maradits Cleveland is a popular cash flow market due to its affordable prices. In evaluating any market however, you should be considering not just short term cash flow but also long term asset value. Markets with strong economic and demographic fundamentals such as population growth and job growth will perform better over the long term than those with weak fundamentals. Although Cleveland does cash flow it is the 5th fastest shrinking large city in the U.S. and has been shrinking since 1950. That's something you need to consider in your evaluation. There are a lot of cash flow markets in the Midwest. What led you to Cleveland?

I'm not sure if your post was meant to be directed at me or the original poster.

I invest in Cleveland because I'm from Cleveland and the numbers make sense.  Obviously I am somewhat biased because of this, but I've had a lot of success in the area.  

Our residential real estate market is suffering from an inventory shortage as is much of the country. Rents and home values have gone up significantly over the last few years, so it's not like there is no appreciation on the table when buying here.

I don't think that looking at a singular data point, likely one that came from a google search or "buzz feed" type article, about the population is an end all be all way to evaluate a market.

It's no surprise that Cleveland and other Midwest Cities that boomed in the industrial age (STL, Pittsburgh, Detroit) were over built and have made big course corrections as these industries have largely left the region and moved overseas.  These cities will never be the New Yorks or Londons of the world, but people are still going to live there and I think we're closer to approaching an equilibrium of population in the market rather than a complete exodus and the city falling off the face of the earth.

The population of the MSA has been a lot steadier than the City of Cleveland itself and is still in the top 30 highest population markets in the country.  I suspect a lot of the population shift is people moving from the old/functionally obsolete housing stock  in Cleveland proper (the older neighborhoods that popped up during the industrial age) into newer built homes 10 minutes down the road in the suburbs because the land simply isn't available within the city limits.

We have some major economic drivers in the academic and medical fields.  The Metro health system is underway on a near billion dollar expansion project, which is just one of many development/redevelopment/infrastructure projects going on in the area.  I would have to believe the powers who signed off on projects of this magnitude had a little bit more time and research invested into the market than you or I do before making this type of decision.

With all of that being said, who knows... I could be completely wrong, but I'm going to keep buying.  I'll dog ear this thread and check back in a few years to eat my words if needed.  Who knows, with as bullish as the Columbus crew on BP is, we might just be annexed as "Columbus on the Lake" sooner than later.
 

4Reply
See this reply in the discussion

40 Replies

Jump to latestLatest
  • James MaraditsPro Member
    Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
    5y

    Hey Elias,

    There are a lot of us Cleveland investors active here on BP, and a whole Cleveland Forum with plenty of great topics HERE.

    Please feel free to shoot me a message if you want to connect and discuss further!

    Best of luck!

    2Reply
  • Tanvir Sattar
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 380 posts · 588 votes
    5y

    @Elias Munoz Toledo is another viable option as well. 

    2Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Tanvir Sattar thank you I’ll start looking in that area.

    0Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    5y

    Hey @Elias Munoz, Cleveland is a great area for cash flow, I invest in that area myself and have seen some good cash flow over the course of my investment in that area.  Have you looked at Columbus or Toledo?  Cash flows are good there too!

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Elias Munoz:

    I’m new to real estate and been looking for my first out of state investment property. I been doing some research in what states are better for cash flow properties and it lead me to Cleveland, OH. Maybe I’m wrong and would be helpful if anyone could point me to the right direction. I would really appreciate it. If you’re investing in this area shah neighborhoods do you recommend?

     I would recommend checking out Columbus, Ohio too! Our job and population growth is booming!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    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

    Are you pre-approved with a lender?

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Elias Munoz Congrats on getting going...trust your research...Cleveland has a ton of opportunity. Price points are affordable and rents seem to be pretty strong...we have clients that invest in Cleveland, Columbus, and Indianapolis and they all seem to be doing very well. 

    937-979-7000
    Realize Multifamily Group11 Review
    View Page
    2Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y

    @James Maradits Cleveland is a popular cash flow market due to its affordable prices. In evaluating any market however, you should be considering not just short term cash flow but also long term asset value. Markets with strong economic and demographic fundamentals such as population growth and job growth will perform better over the long term than those with weak fundamentals. Although Cleveland does cash flow it is the 5th fastest shrinking large city in the U.S. and has been shrinking since 1950. That's something you need to consider in your evaluation. There are a lot of cash flow markets in the Midwest. What led you to Cleveland?

    3Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Elias Munoz:

    I’m new to real estate and been looking for my first out of state investment property. I been doing some research in what states are better for cash flow properties and it lead me to Cleveland, OH. Maybe I’m wrong and would be helpful if anyone could point me to the right direction. I would really appreciate it. If you’re investing in this area shah neighborhoods do you recommend?

     Give this a read - The Ultimate Guide to Grading Cleveland Neighborhoods. I'd imagine it's everything you're looking for and more.

    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

    @Elias Munoz   Congratulations on your possible Cleveland "journey". If you get serious about the market I have some contacts for you...............and I can also tell you who to absolutely stay far, far away from.

    4Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Mike Mocek @Mike Mocek I just started looking into those areas the last few days it looks like a good place to start. I see you are in property management too. I’ll like to connect about that a bit more.

    0Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Remington Lyman the more I research the more it’s pointing towards that direction. Do you recommend any neighborhoods I should start looking at? Thank you

    1Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Brian Garlington once we figure out what area fits for us then that’s our second step. Do you have any lender recommendations in Cleveland?

    0Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Brandon Sturgill thank you for your taking your time to read my post. Yes we’re thinking in investing in Cleveland and Columbus. We just need a bit more research to do but looks like we’re heading that direction and next step would be to get pre approve.

    0Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Mike D'Arrigo it’s affordable and cash flows pretty well and that’s something we are looking for as a rookie investor.

    0Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Mike D'Arrigo I’m looking for a buy and hold investment

    0Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @James Wise this is really helpful and will have a good idea where to look and where to stay away from. Thank you!

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y
    Originally posted by @Elias Munoz:

    @Mike D'Arrigo it’s affordable and cash flows pretty well and that’s something we are looking for as a rookie investor.

    Elias, affordability and cash flow should be just your starting point but as I said, economic and demographic trends are equally important to your asset value, especially for a long term buy and hold. You don't want to buy in a declining market.

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

    @Remington Lyman the more I research the more it’s pointing towards that direction. Do you recommend any neighborhoods I should start looking at? Thank you

    North Linden, South of Main, Vassor Village, Woodland Park, MT Vernon, Milo-Grogan, Franklinton, Merrion Village, Hungarian Village, Southern Orchards, Driving Park, Olde Towne East, Franklin Park, King Lincoln, Old Oaks, Livingston Park are all but not limited to some areas in Columbus, Ohio I think will gentrify quickly and make for great long term buy and holds.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Mike D'Arrigo yes you’re right that’s something we should consider and look into more before diving in.

    0Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Tanvir Sattar thank you will check that out

    1Reply
  • Elias Munoz
    OP
    New to Real Estate · Santa Barbara, CA · Member since 2020 · 51 posts · 12 votes
    5y

    @Remington Lyman thank you I’ll start doing some research in these areas this afternoon

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

    @Remington Lyman thank you I’ll start doing some research in these areas this afternoon

     Sounds good!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y
    Originally posted by @Elias Munoz:

    @Mike D'Arrigo yes you’re right that’s something we should consider and look into more before diving in.

    Elias, I'm a big believer that once you make the decision to invest outside of your local market, you have a free slate to choose the absolute best and strongest market based on all criteria, not just short term cash flow.

    1Reply
  • Rick Jarrell
    Member since 2019 · 6 posts · 7 votes
    5y

    Hey Elias - I’m also a rookie investor and bought my first property in Cleveland last year. My reasons were mix of cash flow, price point, and familiarity with the area due to family. If you want to DM me I can brain dump on ya and answer any questions.

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free