New investor to the Cleveland Ohio area

19 Replies

I am new to investing in RE and trying to get my portfolio off the ground by starting in the Cleveland market.  I am out of state, and my local area (in Boston) creates a much larger barrier to entry, so I have been researching areas of the country that might enable me to start to build my portfolio sooner.  I am zeroing in on the Cleveland metro area because from what I can tell, there is great potential in seemingly reasonable property prices as well as attractive rents.  I was wondering if anyone has recommendations for resources in the area to assist in finding turnkey properties?  I have found what appears to be attractive numbers in areas like Cleveland Heights, but I would love to pick the brain of a local with some experience.  Thanks in advance for any insight.

Rob

Cleveland Heights is a great and upcoming area, but the issue with any of the Heights areas on the East Side are property taxes. As long as the numbers work for you, then its not a big deal, but just be aware that taxes can range from $300-$750 a month in your budget in some areas. 

Feel free to hit me up in PM for more info. 

Rob,

We are concentrated in Tremont and Detroit Shoreway areas.  Amazon is going to Euclid.  may be a good place to pick up properties.  PM for more info

Originally posted by @Rob DeLaurentis :

I am new to investing in RE and trying to get my portfolio off the ground by starting in the Cleveland market.  I am out of state, and my local area (in Boston) creates a much larger barrier to entry, so I have been researching areas of the country that might enable me to start to build my portfolio sooner.  I am zeroing in on the Cleveland metro area because from what I can tell, there is great potential in seemingly reasonable property prices as well as attractive rents.  I was wondering if anyone has recommendations for resources in the area to assist in finding turnkey properties?  I have found what appears to be attractive numbers in areas like Cleveland Heights, but I would love to pick the brain of a local with some experience.  Thanks in advance for any insight.

Rob

 I agree. There are so many different areas that people are focusing on. Many love Cleveland Heights and Shaker Heights. Others love the "up and coming areas" like Tremont, Ohio City, and University Circle. 

Amazon is moving into Euclid and a little more south near Bedford. Those areas are getting hotter due to that. There are a lot to pick from, just make sure you do your research!

Best of luck to you!

@Rob DeLaurentis

Rob,....I'm out of state as well, but I purposely have looked at Cleveland because of the excellent cash flow opportunities. Just like @Christopher Blanco has mentioned.....taxes can be interesting. You literally have different tax percentages according to the zip code. 

The first question every agent will ask you is going to be have you been preapproved with a lender yet? What price range are you looking at, are you looking at SFR's or small multifamily?

IF you havent been preapproved you should get started on that first man. I'm not an agent or a mortgage person, but I have a duplex that I'm closing on right now out in Cleveland so if you want an "out of state perspective" let me know man. 

Hey what’s going on rob and welcome to bigger pockets!

I’m also new into the REI world and bigger pockets has been a major help to me!
As a Cleveland native, born and raised, I’d like to think that’s one advantage I’ve had over a few of the investors here. I’ve lived all around Cleveland throughout my life, from the suburbs to greater Cleveland . I have a first hand experience of these areas investors are interested in! Any questions about areas I’m willing to answer just PM me!

-Mell

Hi Rob,

I'm another out of stater looking at the Cleveland area for investing. I lived there for a while a few years back and there are lots of great pluses to the area. 

@Rob DeLaurentis   @James Wise   @Lindsay Ash

I can personally vouch for James Wise and the Holton Wise team. I personally flew out to Cleveland a couple of months back and looked at properties with different agents from different companies. I purposely wanted to look at properties with Holton-Wise because they they were one of the companies that does Property management AND has excellent Real Estate Agents. They did not disappoint.

I would highly recommend them. If you want to PM me I'll let you know which of his agents I looked at properties with over there.  

@Brian Garlington @James Wise

Thanks for sharing your experience. I actually did reach out to them about a couple properties they have with some identical photos asking for some clarification. I didn't hear back but hopefully it's just a one time thing. 

Originally posted by @Lindsay Ash :

@Brian Garlington @James Wise

Thanks for sharing your experience. I actually did reach out to them about a couple properties they have with some identical photos asking for some clarification. I didn't hear back but hopefully it's just a one time thing. 

 Sorry to hear that Lindsay. If you want to go ahead & resend your email to us one of our team members will be able to assist. As we sell hundred's of properties I am unsure of which deal you would be referring to. 

@Rob DeLaurentis Out of Stater here too looking closely into the Cleveland 'burbs.  Been researching for a few months now.  Would be happy to connect and exchange ideas.

@Lindsay Ash I had a similar situation about an ambiguity.  However, I noticed that a lot of the emails (even replies to my email inquiries) seem to be "mass emails" not sent to me personally.  @James Wise has posted a ton of very helpful info on the Cleveland area and seems to be doing a million things (busy guy!).  I totally understand that he's likely not going through every e-mail individually.  I'm sure (fingers crossed) I'll hear back from someone soon.

@David Rosenberg thanks for commenting. I agree I've used @James Wise 's resources on here and found them very useful. Hope you get your ambiguity straightened out. 

Originally posted by @David Rosenberg :

@Rob DeLaurentis Out of Stater here too looking closely into the Cleveland 'burbs.  Been researching for a few months now.  Would be happy to connect and exchange ideas.

@Lindsay Ash I had a similar situation about an ambiguity.  However, I noticed that a lot of the emails (even replies to my email inquiries) seem to be "mass emails" not sent to me personally.  @James Wise has posted a ton of very helpful info on the Cleveland area and seems to be doing a million things (busy guy!).  I totally understand that he's likely not going through every e-mail individually.  I'm sure (fingers crossed) I'll hear back from someone soon.

 Yes David that is true generally speaking a lot, if not all of the initial inquiry responses that I send out are of a mass email variety. For those reading I would like to take the opportunity to get into the logistics of why it is necessary for me to do it that way.

The general process for selling investment real estate at Holton-Wise is through our daily email offerings. We send out 1 investment property every day at 1pm EST. This gets sent out to 1,000's of investors. On average we receive between 80-100 inquiries on every property. EVERY DAY!

I monitor this email chain & respond accordingly. I go through all of the questions & quickly toss the responses to each of them in one mass email for all to see as to avoid a continuous never ending wave of follow up responses. Generally speaking most questions are pretty similar and many investors are asking the same questions. This is the only way to do it that makes any sense as having 100 separate conversations every single day for a property that can only be sold to 1 buyer is not a logistically feasible way to run a high volume business like ours. If I did that I wouldn't have the time to oversee the $50M portfolio! 

Does this process work for every single buyer? No it doesn't. Do we loose some potential buyers doing it this way? Likely yes we do. However we are the number 1 seller in the greater Cleveland area so it has proven to be the most effective method on the planet to moving investment property in the Cleveland area. On top of that we do have other agents on staff who can provide more of a 1 on 1 experience to those who request it. However, if the agents feel the buyer is not serious enough they are not going to spend hours & hours working with that individual either. Buyers need to understand that there is a supply & demand. There is a ton of investor interest & money flowing into Cleveland right now. Working with an agent is a mutual relationship. If there are investors who are willing to buy with less interaction the agents will simply sell to them. At some point investors need to take responsibility for their investment goals & get aggressive. These are after all money making opportunities. Sometimes you need to go out & take what you want to make a profit in this industry.

It's also important to note that another reason for the mass emails is that about 1/3 of the follow up questions that are asked are already answered in the original email offering! All if you are a new investor(s) looking to buy investment real estate, not actually reading the original offering or watching the marketing video & then asking the Broker/Realtor questions that are already answered is not the way to do business if you want to be taken seriously! But that is a topic for another day.

I hope that clears some things up for those who are wondering why things are done the way that they are done. Happy investing to all.

Thanks to all for the responses, and insight into the area.  It is encouraging that a few other "out of staters" have come to the same conclusions that I have and hopefully where there's smoke there's fire. 

@Brian Garlington @Lindsay Ash @David Rosenberg I have sent PM/requests and definitely would like to compare notes and ideas if you are interested.

@Tra'Mell Taylor   @Christopher Blanco  I also sent a request your way because insight from a local would be a great help in identifying an area that makes the most sense.

Welcome aboard @Rob DeLaurentis , you came to the right place. Cleveland is heavily represented on the forums, a quick search will render answers to many questions you may have about the area. - Jad

A quick tidbit when selecting a neighborhood or zip to research. Look at property asking prices that are in close proximity to your area of interest. If you see SFR and duplex prices less than 30k, it is a good sign that the area is not the best. I agree with the advice above mentioning taxes. I work in Richmond Heights for my regular 9-5 which is fairly close to some of the aforementioned localities. There is definitely a big difference between some of the city tax percentages in Cuyahoga County vs where I live in Lake County.

I was wondering if some of the local experts can give us a list of average property taxes by zip code. They do vary drastically by the area. For any out of state investors you must be aware of this. My SFH in 44129 is $220 per month.

Hi Amir,
This website may help

https://smartasset.com/taxes/ohio-property-tax-calculator

@Luke Terry thanks

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