Investing in Stockyards Cleveland

14 Replies | Cleveland, Ohio

Hi there!

I was wondering if anyone is currently investing in the stockyards area. I see duplexes going for mid $60K but I don’t seem to find any comps. On paper, they seem to cash flow and the neighborhood varies from street to street. Any thoughts on value add opportunities? How is the tenant pool in your experience? Is it going to be possible to do a cash out refinance if the units are remodeled? Not like an A property, but nice and decent. A

Please share your thoughts!

Thank you

Martin

Originally posted by @Martin Moran:

Hi there!

I was wondering if anyone is currently investing in the stockyards area. I see duplexes going for mid $60K but I don’t seem to find any comps. On paper, they seem to cash flow and the neighborhood varies from street to street. Any thoughts on value add opportunities? How is the tenant pool in your experience? Is it going to be possible to do a cash out refinance if the units are remodeled? Not like an A property, but nice and decent. A

Please share your thoughts!

Thank you

Martin

 Um, I really wouldn't touch that area. I would stick to the suburbs on the Eastside or Westside. 

@Martin Moran  You will start seeing this post of mine showing up often.  "The city of Cleveland has proposed legislation to require ALL investment property owners to certify that their rental property is "lead-safe". The legislation has not yet passed, but a councilman recently told me at a meeting on the subject that passing the legislation is a forgone conclusion. It is not yet determined how owners of rental properties with have to certify, but it will 1.) for sure require a licensed lead specialist to proactively certify that the property is lead-safe and 2.) the burden of lead-safe compliance will fall largely on the owner. Bob Collett, Property Manager"

This legislation is expected to pass this year.  Required compliance will be phased in over 2 years.  The rental registration fee in Cleveland will increase from $35 to $70 per unit.

You do not want to be the last investor to purchase the property, just before the legislation goes into effect.  If you are going to buy in Cleveland... I strongly urge you to get it tested for lead by a qualified lead specialist.

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Thank you for all the information! I know I have a ton of questions. Still working on getting my first property and I don’t want to make the wrong decision. I got distracted by the shiny object, I had been looking in Parma, Euclid, South Euclid, Brooklyn and somehow saw a duplex in stockyards. Have to keep focused.

Thanks for the advice!

Originally posted by @Martin Moran:

Hi there!

I was wondering if anyone is currently investing in the stockyards area. I see duplexes going for mid $60K but I don’t seem to find any comps. On paper, they seem to cash flow and the neighborhood varies from street to street. Any thoughts on value add opportunities? How is the tenant pool in your experience? Is it going to be possible to do a cash out refinance if the units are remodeled? Not like an A property, but nice and decent. A

Please share your thoughts!

Thank you

Martin

This is a D-class area. For more info on what I mean when I say D-class check out The Ultimate Guide to Grading Cleveland Neighborhoods.

You get what you pay for. You thinking a $30000 unit is going to bring an A class tenant?

No secret sauce in RE. It's always a risk v reward. Numbers look great when lot of risk is involved

Originally posted by @Bob Collett :

@Martin Moran   You will start seeing this post of mine showing up often.  "The city of Cleveland has proposed legislation to require ALL investment property owners to certify that their rental property is "lead-safe". The legislation has not yet passed, but a councilman recently told me at a meeting on the subject that passing the legislation is a forgone conclusion. It is not yet determined how owners of rental properties with have to certify, but it will 1.) for sure require a licensed lead specialist to proactively certify that the property is lead-safe and 2.) the burden of lead-safe compliance will fall largely on the owner. Bob Collett, Property Manager"

This legislation is expected to pass this year.  Required compliance will be phased in over 2 years.  The rental registration fee in Cleveland will increase from $35 to $70 per unit.

You do not want to be the last investor to purchase the property, just before the legislation goes into effect.  If you are going to buy in Cleveland... I strongly urge you to get it tested for lead by a qualified lead specialist.

Originally posted by @Bob Collett:

@Martin Moran  You will start seeing this post of mine showing up often.  "The city of Cleveland has proposed legislation to require ALL investment property owners to certify that their rental property is "lead-safe". The legislation has not yet passed, but a councilman recently told me at a meeting on the subject that passing the legislation is a forgone conclusion. It is not yet determined how owners of rental properties with have to certify, but it will 1.) for sure require a licensed lead specialist to proactively certify that the property is lead-safe and 2.) the burden of lead-safe compliance will fall largely on the owner. Bob Collett, Property Manager"

This legislation is expected to pass this year.  Required compliance will be phased in over 2 years.  The rental registration fee in Cleveland will increase from $35 to $70 per unit.

You do not want to be the last investor to purchase the property, just before the legislation goes into effect.  If you are going to buy in Cleveland... I strongly urge you to get it tested for lead by a qualified lead specialist.

Will this legislation only impact Cleveland proper?  What about surrounding suburbs?  

This proposed legislation is CLEVELAND specific. However, lead is an issue throughout the county.

The key is to be informed. If you are considering a purchase in cleveland, or the suburbs, have it tested for lead in anticipation of the new lead-sage ordinance.

The presence of lead issues could create an opportunity for an investor who already plans to replace windows and doors, install vinyl siding and paint the interior.

However, we also have to consider the downward pressure this legislation might have on overall values in the near term.

The county has some assistance available to make homes lead safe.

Best of luck

Bob

Originally posted by @Greg Schuricht:
Originally posted by @Bob Collett:

@Martin Moran  You will start seeing this post of mine showing up often.  "The city of Cleveland has proposed legislation to require ALL investment property owners to certify that their rental property is "lead-safe". The legislation has not yet passed, but a councilman recently told me at a meeting on the subject that passing the legislation is a forgone conclusion. It is not yet determined how owners of rental properties with have to certify, but it will 1.) for sure require a licensed lead specialist to proactively certify that the property is lead-safe and 2.) the burden of lead-safe compliance will fall largely on the owner. Bob Collett, Property Manager"

This legislation is expected to pass this year.  Required compliance will be phased in over 2 years.  The rental registration fee in Cleveland will increase from $35 to $70 per unit.

You do not want to be the last investor to purchase the property, just before the legislation goes into effect.  If you are going to buy in Cleveland... I strongly urge you to get it tested for lead by a qualified lead specialist.

Will this legislation only impact Cleveland proper?  What about surrounding suburbs?  

 The city of Cleveland as this is being done through the city council. Nothing to do with the independent suburbs. 

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@bob collett that's why I keep doing research every day. Has this passed in the cleveland market to date or is still being voted on? I've been looking in cleveland and suburbs around. Trying to be safe but risk is good too. First time I'm hearing of this. I know being lead compliant in Massachusetts takes a bit to complete and I'm sure it's probably the same in cleveland. In mass if u dont have an inspector come check u can say its unknown if there is lead so a lot of people are scared to be lead compliant due to inspector coming to inspect and saying it's all over the place.   Going to add @James wise and @Tom ott to the conversation also.  I know all of u guys are deep in the market info. What's your take on how much a ball park figure is to get lead compliant. I know everything is case to case basis but thoughts on an average. Or worst case scenario. Thanks for your time guys.