Investing in a Quad in Cleveland OH

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Investing in a Quad in Cleveland OH

Jag C.Pro Member
Rental Property Investor · Member since 2018 · 74 posts · 22 votes

Any Cleveland investors/residents here? I'm looking at a fully rehabbed turnkey quad in the Clark-Fulton area (on W 54th St). The numbers come in at 7% cash on cash return at 20% down with 5.25% over 30 years (after taking into account property management and 15% reserves to cover vacancy and capex/maintenance).

Its 4 blocks from Gordon square, and down from the medical hospital that is getting a $1billion makeover, and walking distance to St Ignatius private school, 7 minutes drive to Ohio City.

Any thoughts about the area or the deal? I am especially interested in any insights into the area.

Thank you.

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Lee RipmaPro Member
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
5y

@Jag C. location insights for a specific area used to be hard to get. I look at the DISCERN method, demographics, income, schools, crime, expansion (population and income growth), rent levels, and neighborhood indicator stores. I look at a location, then I dive in on the property itself. 

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  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    5y

    @Jag C. location insights for a specific area used to be hard to get. I look at the DISCERN method, demographics, income, schools, crime, expansion (population and income growth), rent levels, and neighborhood indicator stores. I look at a location, then I dive in on the property itself. 

    Podcast Guest on Show #373
    3Reply
  • Denis Woosley
    Investor · Cleveland, OH · Member since 2016 · 25 posts · 29 votes
    5y

    Clark-Fulton is not 4 blocks from Gordon Square. Clark-Fulton is a completely different neighborhood than Detroit-Shoreway. If it's in Detroit-Shoreway on 54th (Address will be 1*** 54th street) then a fully rehabbed Quad will not go for less than $300k. It sounds like you are getting areas crossed and these Cleveland neighborhoods are EXTREMELY different. Detroit-Shoreway is B-A+ class and Clark-Fulton is mainly D class. I live one block from Gordon Square so I know the area very well.

    3Reply
  • Dave StokleyBusiness Member
    Property Manager · Cleveland, OH · Member since 2015 · 705 posts · 799 votes
    5y

    Need a cross street or address, but eastern Clark-Fulton (where you’re actually near Metro Hospital) is a much better spot, and there actually is some development going on there. Be as close to W25 as you can. And just Google “Clark Fulton development” to read about what’s going on and where.

    0Reply
  • Nathan FisherBusiness Member
    Property Manager · Cleveland, OH · Member since 2020 · 312 posts · 265 votes
    5y

    Don't forget to factor in the cost of lead clearances. 

    [email protected]216-245-2901
    Aligned Properties Group4.291 Reviews
    WebsiteView Page
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  • Michael Orlando
    Investor · Cleveland, OH · Member since 2019 · 147 posts · 156 votes
    5y

    @Jag C. Clark Fulton tends to be a pretty rough area - I'm not sure your info is correct? I would make sure you do some good due diligence on the area. Also, 7% COC for this type of area sounds very low.

    0Reply
  • Jag C.Pro Member
    OP
    Rental Property Investor · Member since 2018 · 74 posts · 22 votes
    4y

    @Nathan Fisher thank you - I understand this became law in Cleveland - was this requirement in place last year? WOuld you know when it became law? The seller needs to do this before selling, correct? 

    0Reply
  • Jag C.Pro Member
    OP
    Rental Property Investor · Member since 2018 · 74 posts · 22 votes
    4y

    @Michael Orlando thank you for that. Have you seen a change in the last year? 

    0Reply
  • Shane Kelly
    Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    4y
    Quote from @Jag C.:

    @Michael Orlando thank you for that. Have you seen a change in the last year? 


     Some of it has improved, but the further away from Ohio City you get, the worse it gets for the most part.

    0Reply
  • Nathan FisherBusiness Member
    Property Manager · Cleveland, OH · Member since 2020 · 312 posts · 265 votes
    4y

    @Jag C.It is the law, It's not rigidly enforced until you need to get an eviction. Most Sellers are not doing them before selling. 
    It's a hassle, but It's not the end of the world. I did about 70 this year. You just got to do it right. There's also a $500 grant from the city to get them taken care of.

    [email protected]216-245-2901
    Aligned Properties Group4.291 Reviews
    WebsiteView Page
    1Reply
  • Jag C.Pro Member
    OP
    Rental Property Investor · Member since 2018 · 74 posts · 22 votes
    4y

    @nathan 

    @Nathan Fisher thank you. 

    0Reply
  • Nicholas Salman
    Lender · OH · Member since 2022 · 113 posts · 77 votes
    4y

    Hey! just wanted to reach out and see how this went?  Hope all is well and would love to be a resource to you.  Take care and let's connect!

    0Reply
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