Lead safety certification, taxes, evictions etc...
Hi all
I have five doors in the Cleveland area that I bought in early 2019. I am wondering if anyone is still finding deals that will cash flow. Three doors are in a D neighborhood and two are in B-C neighborhoods. Cleveland seems to come with many unanticipated costs such as high property taxes and now the lead certification process that has to be reissued every two years. I am wondering if others are finding good solutions to permanently fix the issues with lead paint at a reasonable price. I have gotten taxes reduced by contesting the value of the B-C properties. I have lost quite a bit of rent due to Covid and have had to evict two tenants after the initial moratorium lifted. It's a bit hard to really assess how good a cash flow investment I have given this. I am curious if others have noticed a change in cash flow during Covid. Thanks!
Most Popular Reply
Hey Kimberly,
I do not have any property in D areas, however I have heard from my friends that they have had much more trouble with their D area units then I have had in B units where I prefer to invest. I think this is more common in D areas as they generally come with more risk.
I am surprised to hear you say you think taxes are high as they are a bit higher in Cuyahoga county (where Cleveland is) but compared to many other places, like California, they are considerably lower.
There really are great cash flowing investments in Cleveland and the surrounding areas, however you really must take several variables into consideration as well as have someone with boots on the ground in the area who really knows where and what is a great deal here.
And finally on the led paint issue, it has been a huge issue here for many of my investing friends, so I have decided to stay away from investments in the city of Cleveland at this time unless they are a killer deal and worth the lead paint hoops and hassle.