Invest long distance in Euclid Ohio?

11 Replies

I hear a lot of "it used to be nicer, but now i'm scared to get out of my car in Euclid".  Are you comfortable with the tenant base?  Are evictions common and if so how lengthy?

Personally I would not buy a house in Euclid, especially if you are long distance. That area is a c-class area, or worse in some places. The houses may be cheaper, but you are dealing with, typically a lower socioeconomic status of tenant, and many section 8 properties.

I have 10 houses in the Parma area, and surrounding suburbs and have no problem getting 1200/mo or higher for my units.

Originally posted by @Shawn R Gilronan :

Personally I would not buy a house in Euclid, especially if you are long distance. That area is a c-class area, or worse in some places. The houses may be cheaper, but you are dealing with, typically a lower socioeconomic status of tenant, and many section 8 properties.

I have 10 houses in the Parma area, and surrounding suburbs and have no problem getting 1200/mo or higher for my units.

 Don't get me wrong when I say this b/c I do love me some Parma.

We have many properties including our Sales & Property Management offices in Parma. However I am gonna disagree. I think Euclid is hot right now. Prices are cheaper than Parma. Rents are higher & I think the Amazon fulfillment center is gonna cause an increase in rental demand once it's up & running.

If all things are equal & I have my choice between buying a house in Euclid or Parma I am picking the one in Euclid right now.

@Account Closed l don’t know Euclid from a hole in the ground but I’d chalk this up to: “If you have to ask...”

This is governed by my experience looking at properties out of state. If my agent/PM ever says “We can go see it but you might not like it” it’s always been...well...not for me.

So if you don’t think the area is for you at a macro-level I don’t think it’s likely that you’ll be “pleasantly surprised” in-person.

It’s possibly but I wouldn’t say it’s likely...

If you stay north of Lakeshore the ratio of tenant vs owner occ falls dramatically.  Amazon is coming and that is a great thing.   I have tenant occupied colonial 3rd lot in from the Lake.   When I bought it and rehabbed it every neighbor came up to ma and asked if I was selling it or renting it?  They did NOT want a renter.  They love our tenants!  The secret to success is 'where' you're buying.

Hi @James Wise - do you have any hard data on the "amazon Effect" you're predicting for Euclid? I can't really find anything that shows proven jumps when the simply open a fulfillment center. Thanks.

Originally posted by @Rick Klimek :

Hi @James Wise - do you have any hard data on the "amazon Effect" you're predicting for Euclid? I can't really find anything that shows proven jumps when the simply open a fulfillment center. Thanks.

 Euclid is a small area. The eyeball test alone should tell you that when you jam over 1,000 jobs into a little rental town like that then pay those workers wages that are in line with them being renters of the housing stock in that area the demand is gonna go up there as opposed to other areas. Biggest thing I think investors need to do is realize this is a people business not a spreadsheet business. Can't run your whole business by reading reports.

Euclid has its good and bad pockets, but overall it's prices have risen 16% in the last 12 months so cash flow and appreciation are working in that neighborhood. They are still below the 2007 crash point as well so they still have a lot of room to grow.  

@Account Closed A good person for you to talk to is Michael swan. He owns several houses in Euclid. I believe his phone number is on his profile and he was a podcast guest to. So maybe give that a listen before calling.

Thanks @James Wise . I'm new to this but I would think that those future Amazon employees already live in the CLE market, within easy commuting distance of Euclid. There's not going to be a rush of people wanting to move to Euclid because of a $13/hr. job. I'm all ears though to understand otherwise. Again, I'm new to the SF investment world.

But I do want to say that it behooves any investor/business person to carefully review hard data, financials, spreadsheets etc. to ascertain the viability of a deal. Every business is indeed a "spreadsheet business" if you plan to make money. Sometimes a "gut feeling" might be the right move, but sometimes it's only heartburn.   :)

Thanks again for your feedback.

Originally posted by @Rick Klimek :

Thanks @James Wise. I'm new to this but I would think that those future Amazon employees already live in the CLE market, within easy commuting distance of Euclid. There's not going to be a rush of people wanting to move to Euclid because of a $13/hr. job. I'm all ears though to understand otherwise. Again, I'm new to the SF investment world.

But I do want to say that it behooves any investor/business person to carefully review hard data, financials, spreadsheets etc. to ascertain the viability of a deal. Every business is indeed a "spreadsheet business" if you plan to make money. Sometimes a "gut feeling" might be the right move, but sometimes it's only heartburn.   :)

Thanks again for your feedback.

 Ya see this is where experience & knowledge of the people in this game comes into play. Tenants are transient by nature. They are going to be moving anyway. You think when they move they aren't gonna pick a house with a 5 min drive to work over one with a 30 min drive to work?

As for it being or not being a spreadsheet business, let's just agree to disagree for now. Perhaps after you run through a few hundred tenants we can pick this back up & see if our opinions still differ.

https://www.youtube.com/watch?v=m_djk1RQ2Ew

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