Well guys I know this post is highly opinionated but....I would like to gather some opinions on how comfortable you would feel investing in C neighborhoods. Im still looking for my first house hack and it appears the C neighborhoods may have the best bargains. Now i do see a lot of great opportunities in B neighborhoods but just not as frequent. Can someone with experience in C neighborhoods in the Cleveland area offer some input.
Lender · Ft. Lauderdale, FL · Member since 2019 · 156 posts · 98 votes
7y
Aggressively screen tenants. For C class neighborhoods think school teacher, factory worker, customer service, retail worker, first responder who make 3X than the rent with no violent OR non-violent felonies, no prior evictions. Also require online payment or direct debit, steep deposits such as 1st and last month's rent. If you consider section 8 that requires another level of scrutiny. Write up every infraction immediately, enforce it immediately and don't be afraid to use the threat of reporting them to their case worker to get them to comply. The last thing they want is to lose their voucher.
Lender · Ft. Lauderdale, FL · Member since 2019 · 156 posts · 98 votes
7y
Aggressively screen tenants. For C class neighborhoods think school teacher, factory worker, customer service, retail worker, first responder who make 3X than the rent with no violent OR non-violent felonies, no prior evictions. Also require online payment or direct debit, steep deposits such as 1st and last month's rent. If you consider section 8 that requires another level of scrutiny. Write up every infraction immediately, enforce it immediately and don't be afraid to use the threat of reporting them to their case worker to get them to comply. The last thing they want is to lose their voucher.
@Bob Collett im seeing a lot of activity around 44111 and 44102 very mixed in home conditions and prices. very intriguing
@Herndon Davis okay im planning to do screening this way regardless of whether its an A through C neighborhood. i Guess the fine print is extra important here.
Zip code is generally meaningless unless it's something super homogeneous like 44145 or 44127. A zip code like 44102 has everything spanning from areas that are trending high income to total slums.
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
7y
"Generally speaking....44102 is a "D" zip code............44111 is a solid C....depending on the block it may be C+/B- or even C-.....again, depending on the block.
Yea thats the hard part about Cleveland how it varies so much block to block. i guess for the locals here real specific would be the west boulevard, west park, Jefferson, detroit shore way, triskett, and cudell area
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Brandon Metz - C neighborhood investments can be a great way to start because of the lower buy in and higher cash flow. Just remember that they're more managament heavy and require a much more careful tenant selection approach. You also run the risk of higher turnover costs, which can sink a landlord whose running on thin margins.
My favorite move is to buy a class C property in a class B neighborhood and bring it up to par.
Well guys I know this post is highly opinionated but....I would like to gather some opinions on how comfortable you would feel investing in C neighborhoods. Im still looking for my first house hack and it appears the C neighborhoods may have the best bargains. Now i do see a lot of great opportunities in B neighborhoods but just not as frequent. Can someone with experience in C neighborhoods in the Cleveland area offer some input.
It all comes down to tenant screening and property management. With the right management in place you should be fine.
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
7y
I've had great tenants in C areas and terrible tenants in B areas. And vice versa. There is a saying, "There is no such thing as a bad property, just bad management." The question is, are you the kind of guy that can manage or handle a C area? Why not just buy in a B area? Harder to find a deal? You just are not working it hard enough.
Well guys I know this post is highly opinionated but....I would like to gather some opinions on how comfortable you would feel investing in C neighborhoods. Im still looking for my first house hack and it appears the C neighborhoods may have the best bargains. Now i do see a lot of great opportunities in B neighborhoods but just not as frequent. Can someone with experience in C neighborhoods in the Cleveland area offer some input.
If it's a house hack you've got to factor in lifestyle here as you'll be living there for a year. How important is living in a nicer neighborhood to you?
Investor · Cincinnati, OH · Member since 2015 · 242 posts · 182 votes
7y
@Brandon Metz. You get what you pay for. In other words, there’s a cost associated with the numbers looking better for C properties. If you buy one you’ll learn and it won’t be fun or cheap. I suggest for your first you consider dialing back your cash flow requirement and getting your feet wet with a B property.
Thanks for all the great advice as usual guys. I see alot less listings showing up recently but the old saying stays true. Better to wait for a good deal then force a bad one.