Real Estate Investing in Cleveland

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Real Estate Investing in Cleveland

Matt Rutter
Rental Property Investor · Cleveland, OH · Member since 2016 · 37 posts · 19 votes

I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

Most of the properties I've been finding have been two-unit multi-families, and either:

A) In rough shape that need a lot of work that I don't have the experience doing, or

B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

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Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
9y
Originally posted by @Matt Rutter:

I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

Most of the properties I've been finding have been two-unit multi-families, and either:

A) In rough shape that need a lot of work that I don't have the experience doing, or

B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

Have you looked at Single Families? Many times the Multis in Cleveland are found in bad areas or are hard to come by. Single families will also help get you a better ROI.

Please see below:

Single Family vs. Multi-Family Investments

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  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    There are a few areas in Cleveland that are up-and-coming.   There are many areas that are very low income.   Invest in the best areas and you'll do well.  Even if the cash flow return is less.  My advice...

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Matt Rutter:

    I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

    I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

    Most of the properties I've been finding have been two-unit multi-families, and either:

    A) In rough shape that need a lot of work that I don't have the experience doing, or

    B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

    It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

    That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

    Have you looked at Single Families? Many times the Multis in Cleveland are found in bad areas or are hard to come by. Single families will also help get you a better ROI.

    Please see below:

    Single Family vs. Multi-Family Investments

    1Reply
  • Ian Kurela
    Specialist · Charlotte, NC · Member since 2016 · 239 posts · 117 votes
    9y

    As @Tom Ott said. Many MFH are difficult to snatch up. Of course there are always a few unicorns. Again, beware of the specific neighborhood. If you're not from the area or don't know each neighborhood, it could be detrimental for your investment.  Some boots-on-the-ground work should handle that portion though. Best of luck in the Land!

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y
    Originally posted by @Matt Rutter:

    I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

    I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

    Most of the properties I've been finding have been two-unit multi-families, and either:

    A) In rough shape that need a lot of work that I don't have the experience doing, or

    B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

    It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

    That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

     What prices are you seeing that are not appealing for a cash on cash perspective? Cleveland was rated the number 1 investment market in the U.S.

    1Reply
  • Matt Rutter
    OP
    Rental Property Investor · Cleveland, OH · Member since 2016 · 37 posts · 19 votes
    9y
    Originally posted by @Ian Kurela:

    As @Tom Ott said. Many MFH are difficult to snatch up. Of course there are always a few unicorns. Again, beware of the specific neighborhood. If you're not from the area or don't know each neighborhood, it could be detrimental for your investment.  Some boots-on-the-ground work should handle that portion though. Best of luck in the Land!

    I appreciate the advice. I feel pretty confident navigating the neighborhoods having lived here for almost 4 years, but I think the key is I was thinking that bigger is better with MFH where a handful of SFH might be a better

    0Reply
  • Matt Rutter
    OP
    Rental Property Investor · Cleveland, OH · Member since 2016 · 37 posts · 19 votes
    9y
    Originally posted by @Tom Ott:
    Originally posted by @Matt Rutter:

    I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

    I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

    Most of the properties I've been finding have been two-unit multi-families, and either:

    A) In rough shape that need a lot of work that I don't have the experience doing, or

    B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

    It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

    That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

    Have you looked at Single Families? Many times the Multis in Cleveland are found in bad areas or are hard to come by. Single families will also help get you a better ROI.

    Please see below:

    Single Family vs. Multi-Family Investments

    Thanks for sharing this article. I hadn't seen it before and always just assumed that MFH were the way to go. I'd definitely be interested to pick your brain a bit more on the SFH path since I haven't considered it before.

    0Reply
  • Matt Rutter
    OP
    Rental Property Investor · Cleveland, OH · Member since 2016 · 37 posts · 19 votes
    9y
    Originally posted by @James Wise:
    Originally posted by @Matt Rutter:

    I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

    I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

    Most of the properties I've been finding have been two-unit multi-families, and either:

    A) In rough shape that need a lot of work that I don't have the experience doing, or

    B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

    It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

    That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

     What prices are you seeing that are not appealing for a cash on cash perspective? Cleveland was rated the number 1 investment market in the U.S.

    I guess the catch is most of the places I have been looking at have been MFH, usually 2 units, between $80,000 - $100,000. After viewing a few of them they definitely need some improvements, but even with rents where they had been they don't seem to yield anything worth wild. As a few other people mentioned, I might need to look at SFH instead as a start to get my feet wet.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y
    Originally posted by @Matt Rutter:
    Originally posted by @James Wise:
    Originally posted by @Matt Rutter:

    I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

    I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

    Most of the properties I've been finding have been two-unit multi-families, and either:

    A) In rough shape that need a lot of work that I don't have the experience doing, or

    B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

    It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

    That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

     What prices are you seeing that are not appealing for a cash on cash perspective? Cleveland was rated the number 1 investment market in the U.S.

    I guess the catch is most of the places I have been looking at have been MFH, usually 2 units, between $80,000 - $100,000. After viewing a few of them they definitely need some improvements, but even with rents where they had been they don't seem to yield anything worth wild. As a few other people mentioned, I might need to look at SFH instead as a start to get my feet wet.

    SFR is going to yield a lower return. It sounds like you need to adjust your expectations to what the current state of the market is.

    0Reply
  • Aaron HowellBusiness Member
    Real Estate Agent · Crozet, VA · Member since 2014 · 436 posts · 223 votes
    9y

    Most Duplexes in Cleveland are going to need about $5000 per unit.  Budget that to start when purchasing and you can expect $250/mo cashflow per unit usually after renovation in that $80-$100K range.

    Story House Real Estate529 Reviews
    WebsiteView Page
    0Reply
  • Matt Rutter
    OP
    Rental Property Investor · Cleveland, OH · Member since 2016 · 37 posts · 19 votes
    9y
    Originally posted by @James Wise:
    Originally posted by @Matt Rutter:
    Originally posted by @James Wise:
    Originally posted by @Matt Rutter:

    I'm looking for advice from like minded people that have experience with real estate investing in the Cleveland market.

    I don't have any experience yet in real estate investing. My father held two two-unit apartments outside of Boston when I was growing up and I was always inspired by that. My ideal goal would be to invest in a diverse group of properties long-term in the Cleveland area.

    Most of the properties I've been finding have been two-unit multi-families, and either:

    A) In rough shape that need a lot of work that I don't have the experience doing, or

    B) Are priced (or need repairs) at a level where the rental income would not provide a great cash on cash return. 

    It's been very frustrating on my own trying to find a good deal. I know they're out there! And I know there has to be a better way than what I'm doing right now. I have been actively reading everything I can on BiggerPockets, but really still unsure of where to get started with my first deal.

    That's why I thought I'd post something on the forum to see if someone had any good advice on where to get started in the Cleveland market, areas to look in, investing with as little of your own money down as possible, etc.  I know this is possible and I'd be happy to buy you a cup of coffee to pick your brain .

     What prices are you seeing that are not appealing for a cash on cash perspective? Cleveland was rated the number 1 investment market in the U.S.

    I guess the catch is most of the places I have been looking at have been MFH, usually 2 units, between $80,000 - $100,000. After viewing a few of them they definitely need some improvements, but even with rents where they had been they don't seem to yield anything worth wild. As a few other people mentioned, I might need to look at SFH instead as a start to get my feet wet.

    SFR is going to yield a lower return. It sounds like you need to adjust your expectations to what the current state of the market is.

    For sure!  Exactly why I turned to BPs because I clearly have no idea what I'm doing to get started on the right track. :) 

    0Reply
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