Still Good Deals out there?

Question

Hi guys,

New member here. I've been investing in SFH in A+ Cleveland neighborhood for the past 4 years. I self-manage these properties, doing reno work myself and liked how little I need to get involved. I'm still quite new and inexperienced in the investment world.

Currently I'm looking into expanding and building up my portfolio with MFH/Commercial in B/B+ neighborhood with some disposable W2 income. And I'm planning to use a property management company for these units as I don't want to deal with the headache, and also I potentially will move out of the state, so I want to establish these relationship now while I'm still in Cleveland. I personally have no experience in this market/neighborhood, so I'm looking for some general guidance.

From what I learned on the forum, it seems in order to avoid headache down the line, I should avoid any deals with less than $800 rent/unit. (Is this true for 1-bedroom apartment buildings as well?)

And for it to be a good deal, purchase price needs to be about $60K per unit (reno cost + purchase). Anyone can comment on this?

Also, can anyone recommend an experienced agent who is tailored towards investors in CLE area?

Thanks in advance!

Irina Belkofer · Answer

1-bed apartment building unit won't be $800 unless it's really fancy.

Downtown luxury rentals are exception but it's a different market.

However, you still will feel the difference between $3-4K rentals and $800's - PM will be much more time consuming.

John Ellis · Answer

Joe-

Love to talk more to you about this. I have 2 cities in mind that could fit this type of investment.

James Wise · Answer

A 1 bedroom unit in the Cleveland market renting for $800/mo would be towards the high end of the spectrum, nothing to worry about there. It's 3 bedroom homes renting for $700-$800 that things start to get a little bit dicey.