Evaluating the Cleveland Market

8 Replies

Hello,

I am starting to take a close look at the Cleveland Market for potential real estate investment opportunities. Are there any active local investors or real estate professionals that would be available to speak to me about their experience. From my initial research it seems like a good market for cash flow rentals which is what I have historically focused on in other markets, but also curious if people are successfully flipping.

Thanks

Isaac

@Isaac Taylor I am a new investor, but am from Cleveland so I have knowledge of the area.  

There are some great areas for cash flow, however, I would be very careful regarding where you look. There are certain areas that need to be evaluated street by street, especially the areas right around Cleveland.

Most investors seem to prefer the west side.  Ohio City and Tremont are hot areas.  Parma, Garfield Heights and Old Brooklyn are areas that have opportunities as well.

I am from the east side of Cleveland (15 miles from the city), so I mainly stick to the east side areas that i know very well.  Euclid, Eastlake, Willowick, Wickliffe, South Euclid are all cities that might fit your criteria.

Feel free to let me know if you have more specific questions.

@Isaac Taylor   Cleveland is a cashflow market, your investments should perform well if you've got the right team and invest in the right neighborhoods.

I don't recommend flipping Cleveland properties from out-of-state.

Reach out if you'd like to further discuss the market and certain investment neighborhoods.

https://www.biggerpockets.com/blogs/4704/42419-cleveland-neighborhood-grades

Check the link, you'll find the map mentioned above. Many out of state investors have found it very helpful.

Thanks everyone for the feedback. This is really helpful.  I will definitely connect with a few of you to learn a bit more.  Anyone doing rentals in the city or do most of you focus on the suburbs?  I'm curious how the vacancy rates and evictions change between the city (excluding the worst/F-grade neighborhoods) and the moderate income suburbs.

@Isaac Taylor

We have a large portfolio of properties in Cleveland and the surrounding suburbs. (500+) We average roughly 5-7 evictions per month. Of those 5-7 evictions 4-5 of them are inherited tenants and almost all of the evictions are in the actual city of Cleveland. During a given year we are only evicting a handful of tenants in the suburbs and of that handful the majority are inherited tenants.

Case and point if you do proper screening AND invest in the suburbs you won't have to worry about very many evictions. Many people forget about the big AND. They always think as long as you do the proper screening you don't face the risk, not true. The really good tenants live in the better neighborhoods. 

Originally posted by @Isaac Taylor :

Hello,

I am starting to take a close look at the Cleveland Market for potential real estate investment opportunities.  Are there any active local investors or real estate professionals that would be available to speak to me about their experience.  From my initial research it seems like a good market for cash flow rentals which is what I have historically focused on in other markets, but also curious if people are successfully flipping.

Thanks

Isaac

 Isaac, welcome to CLE, first here is a simple guide for investing out of state:

A Simple Guide for Buying Out of State Turnkey Investment Property

Next, flipping can be successful just depends, how you plan on flipping, being hands-on or doing it remotely ? 

Cashflow is rich on rentals in CLE. Also, depends on your plan/strategy are you looking to be hands on or hands off....... are you looking for property and management or a real turnkey solution that already has that in place and is a complete and comprehensive solution with the property management component built-in.

Lots to think about, weigh and discuss.

Good luck with your adventures ! Cleveland is great for investment and rentals! If you need help or advice or just chat hit me up!    Happy Holidays!!