long term cashflow in Cleveland

6 Replies

Hi guys!

i am currently looking to invest in Cleveland but because i live abroad, i need some help from locals to make a proper analysis of the area. i wonder what potential there is for long term cash flow in Cleveland? i am not interested in short term "ride the wave" kind of investing, what matters to me is only the cash flow over time.

 Therefore i would like to know your thoughts on the Cleveland market and what factors that make people want to stay in the city, and why people would want to move to Cleveland. Would truly appreciate your thoughts and reflections on this matter!

Hi @Liridon K. ,

I see no one has replied to you yet... So I'll take stab at an answer! There is already a lot of information on these forums, and I encourage you to read what has already been written about Cleveland (look in the Cleveland forum as well as a general search). Some very valuable information from knowledgeable and experienced investors throughout this site.

Cleveland is an interesting city. The most important thing to keep in mind about it, IMO, is that the suburbs are very different from the city proper. Cleveland took a big hit during the housing crisis almost a decade ago, and you can still see the scars- LOTS of abandoned/boarded up homes throughout the city. It's a sad sight. The city had already been declining with the slow disappearance of the steel industry in the region. I don't invest in the city itself, so I can't tell you much about it. I read on here that there are some parts of it that are reviving and are quite hot markets.

The suburbs are a totally different story- several of them are very vibrant economically and socially. There are some VERY nice areas, with huge and expensive homes as well as middle-of-the-road cities/areas. These generally have good schools, great shopping, and a hopping cultural life. Many are just a short drive away (about half an hour) from downtown and other centers of professional life. 

I invest on the east side of Cleveland. Many (most??) investors seem to prefer the west side. There are reasons for this which you can read about on the site- mostly the fact that the east side tends to have more poor pockets. What I see where I am is strong rental demand from both the working class and the professional class. 

In the former category, you have people in the trades, manufacturing, a lot of retail workers and health care aides. They can usually afford a decent rent and, if you treat them well, will stay for several years. On the flip side, for many, their financial situation is not the most stable.

In the latter category, you have doctors (Cleveland Clinic, University Hospitals), financiers, lawyers, educators. They are obviously looking for higher-end rentals in nicer neighborhoods, with a higher price point for the investor. The health care sector seems to attract many of the people who are looking to rent on the east side (not just doctors and nurses, but also staff- think researchers, administrators, etc). These are good tenants who don't have the same financial constraints as the working class, but they tend not to stay as long- either they buy their own place or they move away from Cleveland (for example, traveling nurses or doctors who are only here for their residency).

Thank you for your insight Patsy! Yes i have been looking through other discussions in the forum, but i did not get answers on the questions i had, but maybe i missed something. What i was looking for was more direct answers on What factors attract people to the city.

As an example i can take My home city Malmö in Sweden where i currently invest. If someone out of state asked me "Hey whats the deal with Malmö?" I would say well first of all there are alot of job opportunities here. Financial institutes, large hospitals, retail, restaurant businesses etc. That attract people from other cities to come and work here. There is also a university in the town and 20minutes outside of Malmö you have  Sweden's largest university, therefore Malmö attracts a lot of students. 

I would Give a more thourogh answer if someone asked me, but i hope you understand What i was looking for. More of the attracting factors then statistical results. 

Can you identify more attraction factors other than those you listed?

Thank you!

So you're asking about the employment and economic drivers in Cleveland.... For the metro area, they are the hospitals (University Hospitals, Cleveland Clinic, MetroHealth are all big employers), universities (Case Western Reserve University, Cleveland State University, John Carroll University, Cuyahoga Community College), plus quite a bit of banking/finance. There is a very active restaurant/foodie scene, especially craft breweries (not sure how many people they employ). People come here for the jobs mainly-- no one is moving here for the weather, trust me. ;-)

Originally posted by @Liridon K. :

Hi guys!

i am currently looking to invest in Cleveland but because i live abroad, i need some help from locals to make a proper analysis of the area. i wonder what potential there is for long term cash flow in Cleveland? i am not interested in short term "ride the wave" kind of investing, what matters to me is only the cash flow over time.

 Therefore i would like to know your thoughts on the Cleveland market and what factors that make people want to stay in the city, and why people would want to move to Cleveland. Would truly appreciate your thoughts and reflections on this matter!

 Welcome to the site.

Tons of folks from all over the U.S & abroad are looking at Cleveland because the price points are so low. Things to note when looking at Cleveland with those out of state eyes are that we have a very wide range of property & neighborhood classes. Tons of good blue collar rental neighborhoods coupled with high risk blighted areas. You need to know what you are getting yourself into when looking at our prices. The Ultimate Guide to Grading Cleveland Neighborhoods should help you cover a lot of ground in regards to what exactly your looking at when you are checking out listings on Zillow or other websites.

As for some more data to chew on in regards to population trends i've found City-Data.com to have a pretty decent chunk of info.

Good luck to you & feel free to tag me if you have any follow up questions on this market or investing in general.

Thank you very much for the advice James, i Will definitely look into that! 

Originally posted by @Liridon K. :

Thank you very much for the advice James, i Will definitely look into that! 

 Anytime.  Good luck on your investing.

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