Thoughts on investing in Parma and Middleburg Heights?

7 Replies | Cleveland, Ohio

What are your thoughts on investing in multifamily in Parma and Middleburg Heights for rentals?  Doesn't seem to command as much rent as Lakewood, Tremont, Ohio City but buildings are much newer vs 1900-1920's.  Thanks

Either Parma or Middleburg Heights would be a solid place to invest in a multi-family if you're getting a decent deal on it. These areas are more family-oriented, so one of the big benefits to investing there rather than Lakewood, Tremont or Ohio City is that you're likely to have tenants stay longer term. Since turnovers are typically a HUGE drain on your return, the tradeoff of slightly lower rents in exchange for longer term tenants seems like a win. Middleburg Heights is on Berea schools, which is slightly better than Parma, but either city will likely get you pretty solid applicants.

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@Phil Chow I have a duplex in Parma and its been great for cash flow. Its in a really good location since its near i480 and 176 and I've never had issues getting tenants.

I would caution though that parts of Parma have very bad flooding issues. Thankfully in the 5 years I've had my property, I' not had this issue, but parts of the street I am on (and its a long street) do flood. I have a coworker who has a SFH in Parma that has flooded 6-7 times in 10 years. And its sewer backup usually due to heavy rain.

Brian

Originally posted by @Phil Chow:

What are your thoughts on investing in multifamily in Parma and Middleburg Heights for rentals?  Doesn't seem to command as much rent as Lakewood, Tremont, Ohio City but buildings are much newer vs 1900-1920's.  Thanks

 Middleburg Hts is primarily an owner occupied neighborhood. Doesn't have what would be considered a hip nightlife to attract high paying millennia tenants like Lakewood, Tremont & Ohio City. This is more like your husband, wife, 2.5 kids, dog & white picket fence neighborhood. I suppose the same can be said for Parma but on a lower quality & price point.