Experience investing in Cleveland Ohio?

Question

Hello,

I'm considering investing in Cleveland Ohio as it seems the properties are cheap and will cashflow. I am located in PA and trying to learn what I can remotely and would really appreciate some feedback from those already investing there. I know there are many neighborhoods and looking for some general experiences. thanks!

Michelle Fenn · Answer

I am an agent and landlord myself in Cleveland.  I would be happy to keep you out of trouble in Cleveland

Steven Foster Wilson · Answer

Hey Brian, I have multiple units in Cleveland giving me steady returns, if you need help finding a good neighborhood to start on, let's connect and discuss how I can help you out.

John Koster · Answer

Cleveland is a great cash flow market, but you really need someone who knows the area to provide guidance.   Neighborhood quality can vary street to street in some areas and there can also be stark differences in tax rates and city ordinances in some suburbs.   Tax rates are adjusted every 3 years and can run anywhere from 2 to 4.5% which can significantly affect cash flow from property to property.   For instance Cleveland Heights & Shaker Heights are historically around 4% and above while Cleveland proper is usually 2.78% or so.   Many of the eastside suburbs also have POS ordinances which can make transactions a little tricky depending on the property and municipality.   I have only dealt with Point of Sale inspections with one property though.  I am sure someone else on here with more experience in this area will chime in on that.   Good luck!

Jack Krusinski · Answer

Hello. I am born and rasied in the Cleveland area and own rentals here. Cleveland can be tricky as you can be in a good up-and-coming area, and then a few blocks over, you can be in a tougher location. Some areas, like Ohio City, Tremont, and the Edgewater area, are great, up-and-coming neighborhoods with good potential for appreciation. Other areas are better for cash flow such as Garfield Heights and Eullid but will most likely see less appreciation. Right now, as in halfway through 2024, there is very low inventory and a lot of demand.

Bob Okenwa · Answer

Tacking onto what @John Koster said, the POS ordinances can be tougher in certain cities than others and the tax rates in the burbs can turn a dream deal into a nightmare rather quickly.

I'd find a knowledgeable agent who also invests and work with this person to learn the areas and see what fits your investing profile. James Wise has a map that should help you get started on places to avoid. This ins't a catch-all, be-all kind of thing, but should get you going in the right direction.

Most importantly is getting a good agent to keep you out of trouble and save you from yourself. What glitters on a spreadsheet isn't necessarily gold in reality.

Harrison Chow · Answer

Hey Brian! Cleveland is truly known for its strong cash flow prospect. Choosing the right neighborhood is key though, I can provide you with a general overview. On the other hand, if you are also interested in property appreciation, Columbus would be the perfect choice. This city is experiencing rapid growth, with many large companies planning to move to the area in the next few months, which will result in an influx of new residents and a wealth of job openings. I hope this information is helpful, and I would be delighted to discuss the topic further with you!

Jack Krusinski · Answer

I have been investing in the Cleveland market, which has been great for us from both a cash flow and appreciation standpoint. It can be a tricky market to navigate, with different cities having different point-of-sale requirements, and Cleveland has lead-based paint requirements for rental properties. I would recommend contacting an agent and other investors in the area!

Experience investing in Cleveland Ohio?

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