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.
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.
Property Manager · Cleveland, OH · Member since 2016 · 67 posts · 53 votes
6y
Cleveland Heights is a solid rental area. Stay south of Mayfield road in my opinion. Also be aware that in addition to higher taxes they have POS inspections when you buy and sell (and they will ding something) as well as rental registration fees and out of state owner fees. Lots of red tape with them but generally worth it.
Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
6y
@Carol Fenimore I wouldn't worry much about the unemployment rate of the overall area, Cleveland Heights has been a long time stable rental area. There are better and worse parts of Cleveland Heights so you do need someone local who is active in the market to help guide you through an acquisition. I think that almost every property can be a good deal at the right price so don't sweat the taxes or POS issues, if you can get a property that the numbers work and you have a good local contact that can make sure your not buying a lemon then I would go for it. Personally I am renting out a unit in the area and I have seen tremendous demand for clean unit with responsive property management.
I feel bad saying this but many of my tenants have had issues with prior management companies ignoring them and letting the property fall apart. I have had good experience keeping my tenants for longer terms because I answer my phone and address their issues in a timely manner. If you are an OOS investor make sure that you find a solid property management company so that you don't have those issues.
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
6y
Cleveland Heights is a solid area. I agree that although there can be a lot of hassle with the POS and registrations, it is worth it. Cleveland Heights has a very high demand for rentals and the rents alone keep going up the taxes have become so much less of a problem than they used to be.