Cleveland Heights, OH?

29 Replies | Cleveland, Ohio

I'm interested in investing in Cleveland Heights, OH.  Specifically duplexes, triplexes, etc.  Does anyone have recent experience with investing in this area?  I'm a bit worried about the higher unemployment rate in Cleveland.

@Carol Fenimore I have a duplex in Cleveland Hts that does quite well. Im not worried about the unemployment rate and I havent had any problems. A couple annoying things about Cleveland Hts is their high property taxes and POS compliance needed to buy/sell property there.

Originally posted by @Carol Fenimore :

I'm interested in investing in Cleveland Heights, OH.  Specifically duplexes, triplexes, etc.  Does anyone have recent experience with investing in this area?  I'm a bit worried about the higher unemployment rate in Cleveland.

I agree with SUNY, is CLE a tick higher then other areas. Sure.

That being said I think your bigger risk is buying now and we go from a low unemployment rate to a higher unemployment rate.

I can help with singles in CH. 

CH has a low barrier to entry for a great community, but taxes and point of sale **** will eat into profits

 

@Carol Fenimore I love Cleveland Heights specifically for investments. Be careful though, there are parts of Cleveland Heights That are very similar to the very hot Lakewood market and then there are also parts of Lakewood that border with East Cleveland that get pretty rough. So just make sure you are working with someone that knows the streets in and out!! Please let me know if there’s anything I can do to assist you with!

Originally posted by @Carol Fenimore :

I'm interested in investing in Cleveland Heights, OH.  Specifically duplexes, triplexes, etc.  Does anyone have recent experience with investing in this area?  I'm a bit worried about the higher unemployment rate in Cleveland.

 Cleveland Heights is a pretty solid neighborhood. You'll get a fairly stable tenant base as opposed to some other neighborhoods in Cleveland. Downsides to Cleveland Heights would be the housing court's extremely liberal bias and the high property taxes. Upsides are high rental demand and very high rents when compared to the rest of the market. For more information on the various neighborhoods and tenant bases in the Cleveland market take a look at The Ultimate Guide to Grading Cleveland Neighborhoods.

@Carol Fenimore in Cleveland you typically find the areas with higher tax rates being in more desirable school districts than their immediate neighboring cities. Albeit a higher number on the expense sheet, you typically fill vacancies fairly quick. Especially if you can find a 3br! Just a thought.

Originally posted by @Michael Masterson :

@Carol Fenimore in Cleveland you typically find the areas with higher tax rates being in more desirable school districts than their immediate neighboring cities. Albeit a higher number on the expense sheet, you typically fill vacancies fairly quick. Especially if you can find a 3br! Just a thought.

 I would agree with that. To add onto that if you take areas like Cleveland Heights, Lakewood, Euclid and Garfield Heights all have higher taxes than neighboring communities but also have higher market rents as well. So it more or less evens out.

Hi Carol, I recently bought a place there and it is currently being prepped for rent. PM me in another few weeks and I'll let you know how much the units rented for etc. 

Originally posted by @Carol Fenimore :

I'm interested in investing in Cleveland Heights, OH.  Specifically duplexes, triplexes, etc.  Does anyone have recent experience with investing in this area?  I'm a bit worried about the higher unemployment rate in Cleveland.

 Are you looking at the suburbs statistics? Cleveland Heights is really great for investing. Taxes are higher, but the high rent makes up for it. Plenty of people work in University Circle, Beachwood, or downtown Cleveland who live in Cleveland Heights. Also, the Cleveland Clinic (the largest employer in Ohio) is located just down the road from Cleveland Heights. Many tenants who live in the surrounding area work there. 

This can probably be chalked up to "don't believe everything you read online," but a few different websites seem to say that 44118 has a lot less crime than 44106.  What's interesting is that 44118 seems to be the area that's right up against East Cleveland, whereas 44106 is further south.  The southwest corner of 44106 looks especially bad.  But again, this is nothing more than what I'm seeing online.  I'm curious to hear what the local experts think.  And don't say it's a block-by-block basis!  Kidding. :)

44106 is coming around due to large development projects in University Circle, but it is still not the best place to live. It is a good place to work/shop. The Cleveland Clinic is located there and so are all of Cleveland's museums. There is also the campus of Case Western Reserve. 

44118 is a great place to invest in Cleveland Heights. Any part of Cleveland Heights is solid. 

Also, yes Euclid is well on the rise. Ever since Amazon moved in, we have seen a huge influx of OOS investors and higher demand from tenants. 

Originally posted by @Chad McLeod :

This can probably be chalked up to "don't believe everything you read online," but a few different websites seem to say that 44118 has a lot less crime than 44106.  What's interesting is that 44118 seems to be the area that's right up against East Cleveland, whereas 44106 is further south.  The southwest corner of 44106 looks especially bad.  But again, this is nothing more than what I'm seeing online.  I'm curious to hear what the local experts think.  And don't say it's a block-by-block basis!  Kidding. :)

Zip codes are seldom homogeneous enough to say "zip code X gets a grade of ___", "look in zip code Y" or "avoid zip code Z" (with occasional exceptions, like 44145 in Westlake, where it's about as homogeneous as can be). I've found that a deep dive into the neighborhood or suburb, usually down to the census tract level, will give you the best indication of the caliber of the specific area. Within both 44118 and 44106 there are census tracts that trend lower income/lower education/lower owner-occ rates, and then census tracts that are almost off the charts the other way (solidly into A territory). Dig deeply into it, and don't just assume that everything in a given zip is good or bad. In addition to looking at the census data for the tract, literally look at the block and the surrounding area using google maps (including street view) -- you can gauge a lot by how the houses and yards are maintained, what kinds of vehicles are most commonly seen in the street/driveways, etc.

For example, within Cleveland Heights, there are some streets off of Mayfield (e.g. Eddington) that are in 44118 that are nearly all multi-family rentals, with fairly low median household incomes, and but in that same zip code there are postcard-worthy mansions on streets like Fairmount. Additionally, portions of 44118 extend into South Euclid, University Heights, and Shaker Heights.

44106, on the other hand, straddles the Cleveland and Cleveland Heights border, and has everything ranging from opulent houses (on streets like Harcourt, in Cleveland Heights) where surgeons and law-firm-partners live, to areas where there are dumpy and cheap houses (on streets like Ansel, in Cleveland) and you'll be lucky to find/retain even a decent section 8 tenant.

I've created a grading map that takes a variety of factors into account to grade each census tract in Cuyahoga County... if anyone wants it, they can send me a private message and I would be happy to share.

@Carol Fenimore   why only there ???? Unemployment rate you are really over thinking. Buy as many as you can all over Cleveland, not just there. Also if you are not cash, you will have a difficult time getting a good deal, 

Good Luck 

Hi Carol, 

Not sure if you're still looking into this. I bought a property there in late 2019 and have plenty of thoughts to share. 

Let me know if you'd like to chat. 

Tim