Cleveland Buy and Hold

[Raluca Gosav]

Me and my husband are out of state and looking to invest in Cleveland real estate market. We are looking to buy and hold multifamily turnkey properties with both creative( subject to & seller finance) and conventional financing. 

We will need a property manager that we can work with and would really help to discuss more about good areas to buy and hold where rents are stable and area is quiet.

We are looking at mix neighborhoods like Tremont, Cudell, Parma or Euclid. We also see a lot of investors talking about Lakewood and mostly the west part, but would love to understand more on what good be a good strategy on rental properties.

We are are also wondering how common is creative finance deals in Cleveland market, considering the price ranges are low comparing to other markets? 

Raluca

[Dave Stokley]

The area you invest in depends so much on your budget and goals (i.e. target returns). Lakewood and Tremont are great neighborhoods where you'll get high rents and good tenants, but property is expensive in these neighborhoods. Parma and Euclid are solid middle class neighborhoods where you should be able to pick up an affordable property and get decent rents and tenants. Ultimately though, you should really consider coming to Cleveland and exploring a little if you don't live here now. It's important to get to know these neighborhoods before you start investing.

As for creative financing, the market is still pretty strong so in most cases I'm not sure why an owner would want to make their life more complicated with something like this. There are always exceptions though if you're willing to hustle to find them.

[Andrew Weiner]

I agree with @Dave Stokley, come and walk around the neighborhoods.  The areas you mentioned are VERY diverse and your overall goals will dictate moving towards one or the other.  The single family rental market has been red hot here lately with very strong rents and demand if you can find a property at the right price.  
If possibly you should walk a house before closing also, lots of people want to rely on “boots on the ground” however I frequently get requests to manage properties that were already purchase only to be the bearer of bad news.  Licensed home inspectors don’t look for poor quality paint or worn out carpet for example that could be expensive to get a unit ready to rent.  That being said there are still lots of good deals and properties.  Even if the property condition is t perfect, if your prepared to deal with them you might get an even better deal.  
As for your creative financing, because properties are selling and owners are getting their money they have little incentive to go another route.  Hard money is a possibility, it costs more but there are less hoops to jump through.  If you need a referral shoot me a DM.

Good luck to you!

[Nicholas Misch]

I have rentals in Parma and have always had a great cash flow and ROI. I like certain areas of Cleveland, mostly on the outer fringes. My wife and I are also working on some creative financing options as we know we won't be able to scale without it. As far as "boots on the ground" it can be tough, however you can find good people in the area you want to invest who will shoot you straight, though it will take some effort.

[Raluca Gosav]

Thank you @Dave Stokley and @Andrew Weiner. We have visited Cleveland one time, especially to see the neighbourhoods , get more insights and connect with real estate agent and we liked Euclid and Parma.

As they are more in our budget we will focus on those for now.

For creative finance we thought we will  look at properties that are on the market for more than 90 days or so and get in touch with wholesalers that might come across distressed sellers. 

[Erin Dorsey Robinson]

Hi Raluca,

I would be glad to introduce you to a couple of property managers my clients have had success with. Feel free to inbox me if you are interested. Also keep in mind that Cleveland is diverse even within neighborhoods and what you are looking at can very every few blocks. Would be glad to share a bit more from our perspective if you ever want to chat. Wishing you the best with your investing!