I am looking at investment properties in Cleveland Area. Any investors/locals from Cleveland share what you think about Garfield Heights area(44125).
I did some basic research, seemed like a not so bad, not so great area.
Would love to hear thoughts from investors in the area or locals
James is an expert in Cleveland area and should be able to help with this.
Garfield is a pretty strong rental area. Not my favorite area for rentals but you definatly could do a lot worse.
older inner ring suburb , leaning towards decline more than growth, but at a slow rate. Still many blue collar neighborhoods, but boarders areas of cleveland that are 'not bad' by cleveland standards. Like most of the inner ring east suburbs ,it will get many tennants leaving the inner city for better housing. Biggest problem will be finding tennants that won't trash the place.
Its a trend that has propagated for a long time in Cleveland, more so on the east side of cleveland in my opinion. James Wise could add to that thought. I currently live in South Euclid, and it has seen a pretty steady change in demographics over the past 15 years or so. Its common for folks to keep moving east. This is a pretty general statement, and it's not to say these neighborhoods are a bad investment. The Heights area has a very strong rental market, but you need to know your pockets.
As others have said, Garfield Heights has been on a slow decline for a long time. The tenant base will be on the lower end of the middle. But it is almost stable in its decline. I know people who do rentals there for the cashflow, but it isn't my style. The houses are affordable, but those who rent either don't care to own or cannot. It has been the same for a long time, and the city government is inept.
South Euclid had a hard shift during the downturn. It was a function of flight, many foreclosures, and city people moving into the now cheap new rentals. SE tried to combat this by instituting the POS inspections and rental license requirements, but the mayor wasn't prepared for this type of scenario. You also were trying to bail out a river overflow with a bucket. A lot of my family stills lives there though.
@Kiran R. You may want to check out this discussion as well: Is garfield heights cleveland ohio a good market for rental properties
You all are so hard on South Euclid! Yeah, its days of $150,000 homes have passed, but it's by no means a bad area to live, and it's surrounded by wonderful neighborhoods (with the obvious exception to the north). I'm not as much of a fan of Garfield, though I do know a lot of investors like to buy there. I never have a reason to go down there, which is telling, considering that choice of neighborhood is not limited in Greater Cleveland.
Sorry to hate on south euclid, but I watched the transition before I moved west. My extended and immediate family have both llost serious equity in the city. If these were investors I wouldn't have a personal opinion about it.
I think it was a strong value play with cash flow potential until about 11 years ago. I think the value play is now a long shot.
I know many people make money on the lower end of the mid range, but I do not take known neighborhood risks, personal preference.
Warren Buffett's rule #1 to wealth building is never lose money. Unknowns happen, but I am a long term guy, so I need a trend in the right direction, even if it is only 1%.
I do not micro market, so if the southeast quadrant of a suburb is ok for investment, it is out. I do not see the compensation for the long term risk, the same for Garfield.
To each their own, I am always open for thoughtful debate.
I've been following along and buy and sell in the Cleveland market. I try and stay west, Old Brooklyn, Parma etc.
I would have to agree with Ryan, It amazes me how much the clientele and the rental rates can change within a couple of blocks.
Most of the large investors (Blackstone, Silverbay, ARP, etc) are primarily investing in markets where they can get strong cash flow and home price appreciation. South Euclid, Garfield Heights and other similar markets in Cleveland will give you the former, but not the latter. Is that to say they are bad investment markets? Not particularly, but an investor may have a harder time offloading a property in those markets relative to other nearby neighborhoods.
As @Ryan Arth mentioned, the demographics in those markets have shifted dramatically over the last 10-15 years with the shift only being exacerbated by the downturn. Certain parts of S. Euclid, particularly those areas bordering UH, are quite good. Likewise with those near Lyndhurst.
Most investors seem focused on the West side of the city. That's fine, but there are certainly a number of markets in the eastern suburbs that can provide strong cash flow and HPA. Either way, Clevelanders will always argue East vs. West. I do it at least 1x per week.
I have lived east west and south. I see it more as a function of that south Euclid has, like Lyndhurst, or Garfield heights (to bring it back around) mostly sfh (or doubles except in Lynd) which draw existing or new families. And the schools that your target tenant base would look at aren't the best.
Lynd is until the kids hit junior high and these aren't markets where your renters are going to go private. This has the potential to increase risk and you should be compensated for that.
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