Yes, Cleveland is a great untapped rental market that not a lot of people really know about. I see a lot of investors looking for multi-family properties, and they're out there, and I can find them for you. But you shouldn't overlook the single family rental market in this area, it's outstanding. I'm finding properties regularly, I just found one two minutes ago, that are selling for 50-60k, in viable rental neighborhoods, getting $800-$1000 a month. That's like a 20% ROI, you can have the house paid off in 5 years and be collecting straight profit for however long as you want, not to mention the increase in the home values over time. Feel free to contact me and I can send you some properties I'm talking about.
What's your input about the Cleveland market? And locations to invest for SFR or duplexes, triplexes and quads? Thank you
There are ample opportunities to invest in Single Family as well as Multi Family. There aren't really that many 3 or 4 units built up in the area however we've got a large housing stock of duplexes here in Cleveland. Specifically Cleveland itself. I dig a lot of the west side neighborhoods in Cleveland for duplexes 44111, 44109 & 44102. You can pick them up for $80k or less & rent them out for $1,300+. If you are a bit more willing to take on risk you can even hit up the northern half of 44109 & pick them up for $50k or less & get a similar amount of rents.
If you go the Single Family route I am feeling Euclid a lot right now as I'm expecting a spike in demand due to the new Amazon center. Here is something you'll want to read as a new investor to the market The Ultimate Guide to Grading Cleveland Neighborhoods.
Yes, Cleveland is a great untapped rental market that not a lot of people really know about. I see a lot of investors looking for multi-family properties, and they're out there, and I can find them for you. But you shouldn't overlook the single family rental market in this area, it's outstanding. I'm finding properties regularly, I just found one two minutes ago, that are selling for 50-60k, in viable rental neighborhoods, getting $800-$1000 a month. That's like a 20% ROI, you can have the house paid off in 5 years and be collecting straight profit for however long as you want, not to mention the increase in the home values over time. Feel free to contact me and I can send you some properties I'm talking about.
What's your input about the Cleveland market? And locations to invest for SFR or duplexes, triplexes and quads? Thank you
Cleveland is still such a good investment market. I would stick to the suburbs though. Places like Euclid, South Euclid, Cleveland Heights, Shaker Heights, Bedford, Warrensville Heights, Eastlake, Willowick, and Parma.
I'm finding properties regularly, I just found one two minutes ago, that are selling for 50-60k, in viable rental neighborhoods, getting $800-$1000 a month. That's like a 20% ROI, you can have the house paid off in 5 years and be collecting straight profit for however long as you want, not to mention the increase in the home values over time.
Rent does not equal cash flow... you're not going to pay off a $60k house that rents for $1,000/mo in 5 years.
If I buy a house for 50k and the rent is $900 a month that equals $10,800 a year. $10,800 x 5 is $54,000. Of course you will have expenses, taxes and maintenance but please explain to me where my math is wrong?
@David Leggett I'm late to this thread but I think if you factor is debt service (which maybe the other person is) Then perhaps you're not really clearing that full $900 a month. I also feel it's safe to assume you can take home 50% of the rent and that would be your cashflow if you're lucky. But what do I know? I am looking at Cleveland all the time and get videos from James Wise on the regular. Either way I think it's a great market to buy into, and I plan on it as soon as I'm able.
After factoring in taxes, insurance, water, sewer, property management, tenant vacancy, rental registration, cap ex and debt service , a $900 rent should earn you $100-400/month cash flow with $400 being the exception. $100-200 is more normal. I have a house that rents for $850 that has been cash flowing $350-500 every month, but the tenant never calls about maintenance, so I expect a hefty repair bill when the tenant vacates, which will bring my cash flow numbers down to normal. I think it is important not to talk about gross income as if it is return on investment.
If I buy a house for 50k and the rent is $900 a month that equals $10,800 a year. $10,800 x 5 is $54,000. Of course you will have expenses, taxes and maintenance but please explain to me where my math is wrong?
A $50,000 rental house in Cleveland that is supposed to bring in $900/mo would likely net around $5,000-$5,500 every year after you cover all of your expenses such as utilities, taxes, insurance, vacancy, non payment of rent, legal, repairs, cap-ex & property management. Some years will be better, some worse.