Very new to Cleveland area, looking for area that cash flow well

12 Replies

Hi, my name is George. I have been following BP for over a year thanks to a co-worker/investor. This exposure has prompted me to use a VA benefit that I thought had expired.

I have been approved for a VA loan and have settled on Cleveland as the place to start. My focus is on cash flow more than appreciation. As required with a VA loan I am aware that I need to move in within 2 months and reside in the property for one year, and then it can be fully rented.

 I work as a merchant marine for the US government and I am generally deployed for maybe half the year. Because I am gone much of the time I am looking for areas that are relatively cheap to get into, cash flow well and rent easily.

Areas I have been looking at are Lakewood, Cleveland Heights, Parma. I would appreciate any info, suggestions local members might have.

Thanks

All the areas you mentioned have good potential.

Obviously part of it depends on where you want to be, but If I were in your position I would try to find a triplex or quad in Lakewood to get as many units as possible with your VA loan. Cleveland Heights and Lakewood are the two suburbs that I see the most 3-4 unit multi families available.

There is the potential to find a newer construction duplex in Parma or a few of the outer ring suburbs.  This is nice from a maintenance standpoint, but probably won't cashflow quite as well.

Good luck!

Thank you James. 

I have seen mainly duplexes in the Lakewood area with a few units with a 3rd suite. The same with Cleveland Heights. Cleveland Heights seems to be generally less expensive than Lakewood. I would assume the rents would correspond accordingly.

Originally posted by @George Hendershot :

Hi, my name is George. I have been following BP for over a year thanks to a co-worker/investor. This exposure has prompted me to use a VA benefit that I thought had expired.

I have been approved for a VA loan and have settled on Cleveland as the place to start. My focus is on cash flow more than appreciation. As required with a VA loan I am aware that I need to move in within 2 months and reside in the property for one year, and then it can be fully rented.

 I work as a merchant marine for the US government and I am generally deployed for maybe half the year. Because I am gone much of the time I am looking for areas that are relatively cheap to get into, cash flow well and rent easily.

Areas I have been looking at are Lakewood, Cleveland Heights, Parma. I would appreciate any info, suggestions local members might have.

Thanks

You have mentioned some good areas. Cleveland Heights and Lakewood may have a bit higher taxes. You can also look into Euclid, South Euclid or Willowick. Those will have some lower taxes, but still good cash flow.

There are a lot of suburbs around here, just make sure to do your research! Good luck!

Hey George, welcome to BP. All 3 of the areas you mentioned have awesome potential. I would focus on Cleveland Heights and Lakewood. I have found that Parma can be a bit lower class of a neighborhood than the other two. Though if that fits your plan, go for it!

@George Hendershot Lakewood is a hot market and will be harder to find good deals, Cleveland Heights get familiar with the Point of sale in the case the property needs repairs and is not point of sale compliant, Parma when tenants are properly qualified is a great market for rentals.. hope that helps 

Congrats on your decision to jump in to RE Investing @George Hendershot !  

Have you connected with @James Wise ?  James has his finger on the pulse of Cleveland.  He also has a map of the Cleveland area that grades each of the communities.  It may be worth checking out.

Best of luck to you!

Originally posted by @Cara Lonsdale :

Congrats on your decision to jump in to RE Investing @George Hendershot !  

Have you connected with @James Wise ?  James has his finger on the pulse of Cleveland.  He also has a map of the Cleveland area that grades each of the communities.  It may be worth checking out.

Best of luck to you!

 Thanks for the shout out Cara.

George the map she is referring to can be found here The Ultimate Guide to Grading Cleveland Neighborhoods

@Tom Ott

Thanks Tom. The guy handling my loan (from Ohio) also mentioned Euclid. Willowick is a new one to me. Besides the higher taxes, I understand Cleveland Heights also can have POS issues. I would think that there could be a contingency that it be clear prior to close. Please correct me if I’m wrong.

Yes, lots of neighborhoods and even bad sections of a good neighborhood it seems.

@Ian Kurela 

Thanks for responding Ian. Yes, it seems many agree Lakewood and Cleveland Heights is a good place to s tart. Thanks for your input on Parma. As this is my first investment, I probably don’t want to start in what might be considered a lower class area. Again, I’m not from the area and the fact I’m deployed much of the year is good reason to make this as easy as possible.I do plan on spending time when I get back to driving the neighborhoods.

@Jonathan Collins

Thanks Jonathan. Yes, it does appear from looking at listing/sale prices that Lakewood might be a bit hot, but as this is a VA loan and I'm only required to reside there a year, then can rent it out completely, combined with the fact I'm a newb, makes me think a property in a ‘hot' market will get me better tenants, and hopefully less vacancy. Not being a home run deal is not so much an issue as striking out with a bad deal.

@Cara Lonsdale

Thanks Cara. Yes, I haves read James posts and have looked at his map. I plan to print it out and research any area I think might fit what I’m looking for. And yes, it does seem he is the go-to guy for info on the Cleveland area.

@James Wise. 

Thank you James for responding, as well as for all your very generous contributions to BP that are no doubt a big help to anyone looking to invest in the Cleveland market. 

@George Hendershot Parma is a great location for rentals, no POS.  Both lakewood and cleveland heights have a POS.  Parma is definitely B-B+ neighborhood.  Lakewood is ridiculously hot. Cleveland heights Varies from street to street, be very careful there. The area is really hard to comp and it's easy to make a mistake, tho you can get great deals there. Cleveland heights and lakewood also have older homes that will require more maintenance.  

Hey George, 

Great name! Same as my son. 

All of the areas you mentioned are good areas. Be careful not moving into the house. 

You need to INTEND on moving into the house. 

My office is in Parma Hts. I can help you if you get closer to making a move.

Good luck with whatever ya do!

@rob

I believe I HAVE to move in. At least for a short time to prove my intent. Anyways, I plan on moving in. I think I can upgrade later on.

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