Recommendations: Cleveland MFU Areas/Realtors

6 Replies | Cleveland, Ohio

Hi Everyone,

I'm in out-of-state investor looking for my first property in the greater Cleveland area (Euclid, Lake County, Parma). At this stage, I'm looking for recommendations if there are other areas I should be looking at?

Also looking for a realtor reference, that would be greatly appreciated!

Originally posted by @Ahmad Kakar :

Hi Everyone,

I'm in out-of-state investor looking for my first property in the greater Cleveland area (Euclid, Lake County, Parma). At this stage, I'm looking for recommendations if there are other areas I should be looking at?

Also looking for a realtor reference, that would be greatly appreciated!

 Parma is a pretty solid neighborhood but the prices of homes have really rebounded since the recession. All of the bungalows we have throughout the city are back to $100k-$120k price points. They still only rent for about $1k tho. Euclid on the other hand is smokin right now. Lake county is a little far away for my expertise. Don't know if you've seen it yet, but check out The Ultimate Guide to Grading Cleveland Neighborhoods for some more insight into all the neighborhoods the Cleveland market has to offer.

@Ahmad Kakar   It really depends on the strategy you are looking to deploy.  When I first started buying MFH in the Cleveland area, I only looked at B class areas and up.  As an out-of-state investor myself, my primary concern was getting an asset that would be steady/stable and had decent cash flow.  The numbers for Cleveland are very attractive on paper, but without the team or experience in place, I felt like my odds of losing my investment were much higher and decided to look at suburbs of Cleveland where cash flow is a bit less, but far safer.  Here are the areas that I personal look at on a daily basis:

Lakewood, Shaker Heights, Cleveland Heights, Parma, Berea, South Euclid.

I look in the other areas as well, but I'm MUCH more cautious.  When I see a property profile and the school districts are shown as 1 out of 10 for K-12, I slow down and look for reasons not to buy.  As the saying goes, "It's better to miss out on a good deal than close on a bad one".

I hope this helps!  As for the realtor reference, I'll be more than happy to share who I use.  I've had to fire 3 agents in the span of a year since I started investing out there and I must say, having a bad agent upfront can cost you tens of thousands of dollars, even at $100k price point.  I've bought 3 MFH so far and in contract for my 4th and finally found an awesome pair of agents that work together.  Make sure you get good references and be aware of any bias (people who personally benefit from you using their reference specifically).

Originally posted by @P.J. Bremner :

@Ahmad Kakar   It really depends on the strategy you are looking to deploy.  When I first started buying MFH in the Cleveland area, I only looked at B class areas and up.  As an out-of-state investor myself, my primary concern was getting an asset that would be steady/stable and had decent cash flow.  The numbers for Cleveland are very attractive on paper, but without the team or experience in place, I felt like my odds of losing my investment were much higher and decided to look at suburbs of Cleveland where cash flow is a bit less, but far safer.  Here are the areas that I personal look at on a daily basis:

Lakewood, Shaker Heights, Cleveland Heights, Parma, Berea, South Euclid.

I look in the other areas as well, but I'm MUCH more cautious.  When I see a property profile and the school districts are shown as 1 out of 10 for K-12, I slow down and look for reasons not to buy.  As the saying goes, "It's better to miss out on a good deal than close on a bad one".

I hope this helps!  As for the realtor reference, I'll be more than happy to share who I use.  I've had to fire 3 agents in the span of a year since I started investing out there and I must say, having a bad agent upfront can cost you tens of thousands of dollars, even at $100k price point.  I've bought 3 MFH so far and in contract for my 4th and finally found an awesome pair of agents that work together.  Make sure you get good references and be aware of any bias (people who personally benefit from you using their reference specifically).

agree with your strategy. better safe than sorry.

Shaker/cleveland heights have very high tax

mind sharing your realtor? thanks

Originally posted by @Amy Hu :

agree with your strategy. better safe than sorry.

Shaker/cleveland heights have very high tax 

mind sharing your realtor? thanks

True, they have very high taxes. My strategy for this is to buy REALLY run down or damaged properties in order to get the purchase price as low as possible. I've been able to pick up a property in Shaker for $27k which will cut $9k annual tax bill down to way less than half of that. Plus, since these properties need so much work, i'm able to get my all in cost at about 65% - 70% of ARV which is perfect for the BRRRR strategy. The only problem is, this isn't a very stable business model (not enough properties will sell in this price range). It's great for the one-off deal for the year, but certainly not something you can go from 0 to 100 units in a couple years doing.

PM me for the agent info, I would rather not blast her info and have the noobs that have no ability to buy properties take up her time.  Not trying to sound rude or harsh btw!  I'm just very protective of the professionals I use as I would expect the same level of respect from them as well.

Originally posted by @P.J. Bremner :
Originally posted by @Amy Hu:

agree with your strategy. better safe than sorry.

Shaker/cleveland heights have very high tax 

mind sharing your realtor? thanks

True, they have very high taxes. My strategy for this is to buy REALLY run down or damaged properties in order to get the purchase price as low as possible. I've been able to pick up a property in Shaker for $27k which will cut $9k annual tax bill down to way less than half of that. Plus, since these properties need so much work, i'm able to get my all in cost at about 65% - 70% of ARV which is perfect for the BRRRR strategy. The only problem is, this isn't a very stable business model (not enough properties will sell in this price range). It's great for the one-off deal for the year, but certainly not something you can go from 0 to 100 units in a couple years doing.

PM me for the agent info, I would rather not blast her info and have the noobs that have no ability to buy properties take up her time.  Not trying to sound rude or harsh btw!  I'm just very protective of the professionals I use as I would expect the same level of respect from them as well.

Thanks, PJ! You've always been so generous sharing your experience and knowledge!

That deal in Shaker is a home run! So happy for you.