Rental Porpert in Cleveland???

Question

Been looking at rental properties like this:

https://www.redfin.com/OH/Cleveland/12403-Osceola-Ave-44108/home/70765864?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

$74,900 turn key duplex. 8b2b 3,136 sq ft. $322/mo mortgage payment with 20% down. Renting out for $1,300/mo so it’s cash flowing and it’s been on the market for 83 days.

I don’t understand why it hasn’t sold if it’s cash flowing. Can somebody explain?

Brian Garlington · Answer

That's a D-/F+ Neighborhood.............unless there are Section 8 tenants currently occupying BOTH units (Guaranteed Income) Iwould stay far away from it. Even in that neighborhood I may stay away from it.........you can find stuff in "C" neighborhoods out there for the same amount and the same returns.

Mike D'Arrigo · Answer

@Christina Williams What is the vacancy rate? Ask for a rental history. The first thing that jumps out at me is that some of the bedrooms appear to be converted attic space. These rooms could be very small or have odd layouts making them hard to rent. Also, you don't know the condition of the property. Brick exteriors always look nice and hide a multitude of sins.

Andrew Weiner · Answer

Your missing maintenance, insurance, property taxes, water and sewer, management fees and high turn over.  However the biggest issue is the location, that neighbor hood is ROUGH, even my "tougher" guys don't like going there.  I manage a property for one of my clients that is on that block and it has been a huge headache, I actually needed a police escort to serve notices there.

Stephen J Davis · Answer

A turn key deal almost always has all of the profit taken out of it. Plus, at that price, it is probably a rough area.

Rental Porpert in Cleveland???

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