Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
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?
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Michael P. 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...
Hinckley, OH · Member since 2017 · 5 posts · 4 votes
8y
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.
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.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y
Michael P. 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...
Real Estate Agent · Cleveland, OH · Member since 2016 · 61 posts · 24 votes
8y
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.
Brecksville, OH · Member since 2018 · 13 posts · 1 vote
8y
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.
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.
Broadview Heights, OH · Member since 2013 · 95 posts · 38 votes
8y
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.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
Michael P. 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.
Brecksville, OH · Member since 2018 · 13 posts · 1 vote
8y
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 @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.
Does anyone have thoughts on the Nicholas Ave and Zeman ave in Euclid? @Nicholas Novak@James Wise. Thanks in advance.
The entire city of Euclid is pretty low risk. You can more or less throw a dart at a map of Euclid blindfolded & still land yourself somewhere fine every time.
Does anyone have thoughts on the Nicholas Ave and Zeman ave in Euclid? @Nicholas Novak@James Wise. Thanks in advance.
Both Nicholas and Zeman are solid streets. Nicholas off of E. 222nd is somewhat better than Nicholas off of E. 200th. I have a single house on Nicholas and it has been a solid performer.
Rental Property Investor · Los Angeles, CA · Member since 2016 · 172 posts · 122 votes
7y
I recently bought a SFH in Euclid. From my understanding the area is coming up and has a solid demand for housing. I'm fairly certain home prices will increase in the area do to Amazon coming.
I recently bought a SFH in Euclid. From my understanding the area is coming up and has a solid demand for housing. I'm fairly certain home prices will increase in the area do to Amazon coming.
Hey Ramon, that is definitely a possibility. It will be interesting to see how prices appreciate in Euclid and North Randall area due to the new Amazon fulfillment centers. I like that area for investment properties, how far east is your property?
Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
7y
I have a 12 unit in Euclid pretty close to the new Amazon on the corner of Beverly Hills and Euclid Ave. my advice is to go NE of the New Amazon and Lake County. Lake County is sooooooo landlord friendly too.
Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Account Closed
I do not know much about that area. I do know that in general owning low income homes are much more time intensive then other properties.. If you are looking to buy out of area with high intensive properties I would suggest first making sure that those homes match what your ultimate goals are.. do not buy just to buy.. but with intent and focus on why your doing it and ask if these properties align with the strategy to get you to your goal.. cheap houses are not a good reason to buy.. I know because I did this and it was a horrible mistake that almost made me go bankrupt.
If they match and align then I would say to make sure you have the right team on your side.. Getting the right property management company to help you with these deals is paramount.. find the team first before you buy and realize it was a mistake. Make sure they align with your goals first
I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.
Questions to Ask prospective management companies
What are your average days on market for vacant homes?
What is your average rent amount for all properties managed?
What is your average work order cost for the owner?
What is your average make ready cost for the owner?
Are all my invoices uploaded to my owner portal?
How do you advertise your vacant units?
Do I receive video of my pre and post make ready?
Do you have a setup fee?
Do you upcharge on maintenance?
When do you make owner payments? How often?
Are you a Certified Property Manager?
Are you a member of NARPM?
What is your Guarantee?
Do you provide move in and move out reports
How many pictures do you take of the property prior to tenant moves in and after the tenant moves out
Do you get weekly reports when the property is vacant what prospective tenants are saying about your home
Do you provide monthly newsletters to your tenants
Do you hold investor education classes to help me become a better investor
Do you have single point portfolio based management services?
How many properties do the owners actually own themselves?
What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits
How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?
Investor · San Jose, CA · Member since 2016 · 41 posts · 11 votes
7y
@Steve Rozenberg Those are very good questions to interview PM candidates. However, from my experience though, they usually know how to answer them nicely without any problem. Then problems will soon surface right after they start to take over your property. Then you will be stuck! My strategy is have them add a clause in the agreement to shorten the initial term to month to month or 90 days and an option to cancel the agreement with a 30 days notice subject to their performance and my satisfaction.
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
7y
@Account Closed Whoever said " but now i'm scared to get out of my car in Euclid". " is simply clueless, no idea what they are talking about. ( Amazon now has about 900k sq ft there ) IMO Buy as much as you can. We used to provide props there for all in 30 40k, Now good luck if you can find a nice prop all in under 60k.......... Listen to those that are actually doing business there vs reading books and quotes online
Good luck
BTW Evictions they are gone in about 55 days or so. Go govt much more secure, and pay more then cash. SCREENING is everything.