I am about to close on my first OOS investment property in Cleveland OH. This is a 3B 2.5B 2 story house in Wickliffe (a suburb 12 miles east of Cleveland). Has good schools and a safe neighborhood.
Little nervous so wanted a ballpark estimate / advice from local experts as to what are typical rental comps. in this area and how much vacancy rate shall I assume.
My personal estimates are 1000 pm and 1 month vacancy. Is this reasonable or too optimistic / conservative?
Thanks in advance.
welcome to the site. I don't work in Wickliffe but am semi familiar with the area. I think your estimate is about where it should be.
Thank you for the feedback. I am hoping to build a strong and steady portfolio of long term buy and hold rentals across different cities. (3 is my target for the year).
Plan to focus on suburban, family oriented neighborhoods with decent schools.
OK if I do not squeeze profits on the rents by going to rougher areas.
Any suggestions welcome.
@Sameer M. Check for local rental units available on Cleveland's Craigslist. That should give you some fairly accurate information as to your rental rate. It is very common for people to use that site in this city. People also look on zillow for rentals here.
As far as vacancy, it depends. People on the lower end of the rental spectrum can move yearly. A month turnaround would be an 8.33% vacancy rate annually. I think that this rate is fairly accurate, as I may have someone stay three years and then take 3 months to have a paying tenant back in there after rehab/upgrades (normally less).
In the dead of winter, things sit. But on average I would say that a month a year baked into your expectations will do you right long term. If the property cannot support that vacancy rate be careful.
Thanks @Ryan A.
Thanks all. An update on the rent and vacancy. Found a tenant who moved in less than a week of closing for 1100 per month. Moving on to the next one...
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