Cleveland Ohio Rental

Rental Property Investor · Los Angeles, CA · Member since 2018 · 8 posts · 9 votes

Hey guys, I'm looking help my family invest in real estate. They finally want to take them leap and I'd really like to guide them in the right direction. They know that long distance investing is possible but only with the correct systems and people in place. Can anyone share their experiences investing in Cleveland Ohio ? We are from southern California, so what are some expenses we might be caught off guard by? The prices seem to make sense but I feel like theres more that I'm not seeing. Any input would be much appreciated!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

I recommend you check out @James Wise videos. He has a lot of educational stuff about the Cleveland market and he may be someone to consider working with. Whether you buy through him or not, it's worth watching because he's brutally honest about what will make/break you.

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Account Closed
Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
7y
@Alexander Hernandez Hi, Im from Cleveland so maybe I am just use to whatever happens here but if by expenses you mean random fees, etc you dont have to worry much. If you are doing rental properties, I would make sure to have a good PM team in place but other than that, our market is good here so maybe for someone from other cities like LA its a little suspicious. My sister is from Chicago and shes always shocked by our real estate trends lol. Do be careful as some housing prices in CLE suburbs are very appealing but the taxes are very high and some cities are more annoying to deal with in regards to evictions, etc but not something a good pm cant handle. good luck to you guys!!
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Alexander Hernandez:

Hey guys, I'm looking help my family invest in real estate. They finally want to take them leap and I'd really like to guide them in the right direction. They know that long distance investing is possible but only with the correct systems and people in place. Can anyone share their experiences investing in Cleveland Ohio ? We are from southern California, so what are some expenses we might be caught off guard by? The prices seem to make sense but I feel like theres more that I'm not seeing. Any input would be much appreciated!
Welcome to the site Alex. Tons of opportunity in Cleveland. Also tons of risk. I have seen countless investors make it & loose it. Biggest thing is educating yourself on the neighborhoods. Some are solid blue collar investments while others are just blighted ghettos. The first thing you'll want to do if read The Ultimate Guide to Grading Cleveland Neighborhoods to get a lay of the land.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
I recommend you check out @James Wise videos. He has a lot of educational stuff about the Cleveland market and he may be someone to consider working with. Whether you buy through him or not, it's worth watching because he's brutally honest about what will make/break you.
The DIY Landlord Book4.7247 Reviews
Website View Page
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Alexander Hernandez
OP
Rental Property Investor · Los Angeles, CA · Member since 2018 · 8 posts · 9 votes
7y
@Suny Capezzuto thank you for your input ! Here in Los angeles we have pretty long sided tenants rights as well but the investment still seems to be worth with the appreciating land value. Are there any specific areas/ zipcodes that I should watch out for ? I see that some properties are around the 40k mark and am not sure if that's a bad indicator or not ? The closer to downtown the better?
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Alexander Hernandez
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Rental Property Investor · Los Angeles, CA · Member since 2018 · 8 posts · 9 votes
7y
@James Wise thanks for linking that ! Haha I'm going to get reading right now !
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Account Closed
Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
7y
@Alexander Hernandez definitely check out James Wise cleveland guide, very helpful and covers the places you may want to invest in. I dont think the closer to downtown is necessarily better theres several good markets that are 15-25 mins out.
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Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
You can find good cashflow in Cleveland however understand what your expenses will be because you either have high taxes which is a cashflow killer or a 100+ year old home that cashflows well but has old age issues.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Anthony Rosa:

You can find good cashflow in Cleveland however understand what your expenses will be because you either have high taxes which is a cashflow killer or a 100+ year old home that cashflows well but has old age issues.
Too the point above a big thing to look out for when you are buying old homes is a finished basement. The basement should be unfinished. You don't want a finished basement in a 100 year old Cleveland rental house. More often than not these basements get a high amount of moisture. They are best used as unfinished spaces to house HVAC, Water tank, electrical panel & laundry. Nothing more.
Another thing you can look at is the agent of the mechanicals & the associated cost of replacement. For example a furnace should run you 30+ years & you'll be spending roughly $3,000 to replace it. Water tanks last around 15 & cost around $1,000 to replace.
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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Alexander Hernandez biggest things I’d wish I’d known when I owned in Cleveland:
Owner pays for water and sewer, always.
Some suburbs have POS when you buy or sell
Taxes vary greatly based on where you are
Basements in general in rental properties will cause you a lot of headache in maintenance (mainly mold).
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Alexander Hernandez
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Rental Property Investor · Los Angeles, CA · Member since 2018 · 8 posts · 9 votes
7y
@James Wise this is great ! We dont have many homes with basements here in Los Angeles. Being that my home has one, I still would have completely looked over the moisture problem that I am CURRENTLY having from the little rain we get !
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Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
Originally posted by @Caleb Heimsoth:

@Alexander Hernandez biggest things I’d wish I’d known when I owned in Cleveland:
Owner pays for water and sewer, always.
Some suburbs have POS when you buy or sell
Taxes vary greatly based on where you are
Basements in general in rental properties will cause you a lot of headache in maintenance (mainly mold).
You can pass on water/sewer bills and grounds keeping to tenants in SFH.
Moisture and water intrusion in basements is a headache.
Is water intrusion & dampness the norm in midwest basements?
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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
Originally posted by @Anthony Rosa:

Originally posted by @Caleb Heimsoth:
@Alexander Hernandez biggest things I’d wish I’d known when I owned in Cleveland:
Owner pays for water and sewer, always.
Some suburbs have POS when you buy or sell
Taxes vary greatly based on where you are
Basements in general in rental properties will cause you a lot of headache in maintenance (mainly mold).
You can pass on water/sewer bills and grounds keeping to tenants in SFH.
Moisture and water intrusion in basements is a headache.
Is water intrusion & dampness the norm in midwest basements?
Yes you’re right you can pass it on to tenants but some PM companies won’t do this, and at the end of the day if tenants don’t pay you’re on the hook for it.
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Alyssa Dyer
Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
7y
@Alexander Hernandez I know investors that have made moves there that I'm happy to introduce you to as long as they give me permission. I will say the last couple I've talked to have come to OKC for their additional properties because of taxes and provider service. I'd definitely look into how taxes will impact your numbers before pulling any triggers!
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Jordan Autrey
Real Estate Broker · Houston, TX · Member since 2019 · 84 posts · 12 votes
7y
@Alyssa Dyer I’m from Ohio and want to have a pending deal within the next 90 days. Could you maybe introduce me to those few investors in Cleveland you recommend Alex to?.
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Jordan Autrey
Real Estate Broker · Houston, TX · Member since 2019 · 84 posts · 12 votes
7y
@Suny Capezzuto how has your ventures within the Cleveland metro area been? What advice what you give a first timer from Ohio looking to get his first close in 90 days!
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Jordan Autrey:

@Suny Capezzuto how has your ventures within the Cleveland metro area been? What advice what you give a first timer from Ohio looking to get his first close in 90 days!
My advice would be to buy something that is on the lower end of the risk scale for your 1st deal. Don't chase the numbers, stick with a conservative investment while getting your feet wet.
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Account Closed
Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
7y
@Jordan Autrey I agree with what @James Wise said, hes more of an expert than me 😉 Working in any city as your first time I imagine is a challenge. Im born and raised Cleveland, OH and have big time real estate mentors here. To be absoluttely honest, I bought my 1st investment property without an ounce of research, it worked out (got lucky) but I dont advise on that lol!
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Alyssa Dyer
Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
7y
@Jordan Autrey I'm not sure if they were in Cleveland or surrounding areas. But I'll reach out and see if they'd like to talk.
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Account Closed
Investor · Cleveland , OH · Member since 2016 · 17 posts · 9 votes
7y
@Jordan Autrey please message me. Let's connect!
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Alyssa Dyer
Rental Property Investor · Oklahoma City, OK · Member since 2017 · 1k+ posts · 694 votes
7y
@Caleb Heimsoth great information!
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Sammy Lyon
Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
7y
@Alexander Hernandez I’m in LA too and invest in Cleveland. Happy to chat — @Shiva Bhaskar + @John Koster and I have hosted a couple meetups for folks in LA who invest in Cleveland, will probably have another one in August. Any of us would be happy to connect with you and support your RE journey!
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Account Closed
Investor · Cleveland , OH · Member since 2016 · 17 posts · 9 votes
7y
@Sammy Lyon I would love to connect with you to learn more about the type of Cleveland properties you invest in. I'm an investor in Cleveland, also born and raised. Let's connect!
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Sammy Lyon
Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
7y
@Account Closed sure thing!!
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Kristopher HanksPro Member
Rental Property Investor · Davenport, FL · Member since 2016 · 593 posts · 382 votes
7y
@Alexander Hernandez
My advice to you is be very careful who you hire to manage the property. That alone could make or break you.
I tried to hire cheap and it cost me dearly. I would have been way ahead of the game by looking at a more experienced and expensive management company. I will not get long winded with the details because those details are already documented in other threads on this site.
Disclaimer: I just recently retained the services of Holton-Wise property management for one SFH in Cleveland. I can not give a review because this relationship is brand new.
Long story short, hire a company like Holton-Wise @James Wise or some of the other larger companies that have been managing properties in the Cuyahoga County area and have the experience dealing with the tenants that live in this area. Also make sure they are experienced with handling evictions, because they are inevitable in the Cleveland area. Reduce your risks for headaches that could have been prevented by putting people in place that will take care of these issues for you. If you do that then you can focus on the investing side of the business.
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Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
7y
Originally posted by @Alexander Hernandez:

Hey guys, I'm looking help my family invest in real estate. They finally want to take them leap and I'd really like to guide them in the right direction. They know that long distance investing is possible but only with the correct systems and people in place. Can anyone share their experiences investing in Cleveland Ohio ? We are from southern California, so what are some expenses we might be caught off guard by? The prices seem to make sense but I feel like theres more that I'm not seeing. Any input would be much appreciated!
Hello and welcome! Cleveland is a great place to invest if you know where to look. I would try to stay out by the suburbs. Good luck to you!
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