First turnkey rental in Ohio

14 Replies

Hi, I am a UK resident and am thinking of purchasing a turnkey rental property in Cleveland via Global Investments. I would appreciate any advice from people who know the local market. The properyt I am currently looking at is on Linn Drive Glenville, is this a war zone? Any advice greatly appreaciated

Thanks

Callum

Google Earth down to all the commercial shopping 1-6 block radius, look for boarded up windows, broken windows, Grafitti, types of cars, types of people, trash etc... if you see all of the above. RUN!!! That is if you thought this area was a good Blue Collar C or B class area by what the agent told you.

Swanny

Thanks Michael, I'll do that. To be fair they haven't claimed that is B or C. Their strategy is to pinpoint good areas then radiate outwards and target solid, affordable properties as close to them as possible. As my 1st investment though I am treading on eggshells!!

Hi and possibly welcome to Cleveland! I’ve been a landlord and GC for over 25 years in Cleveland and serviced the lending industry when the foreclosure crisis was in full swing. I’m also a licensed real estate agent. I have a couple of investors who only look for opportunities in this area because they have a contractor who owns property himself in this area. It works great for them. I don’t own in this neighborhood myself and I have almost 30 units. I would absolutely not recommend purchasing in some parts of Cleveland as a first time investor because you don’t have people that talk the talk and walk the walk of that particular neighborhood. I own all over Cleveland and in Euclid. I would proceed with Cleveland, but I would proceed with caution. I would talk to as many investors as possible who own in Cleveland, and if they don’t self contract I’d find out who is contracting for them and who their property manager is. All day every day I hear stories — some good and a lot horrifying. I would like to see you avoid the latter. You can PM me if you would like to chat further.

I agree with all of the above.  I grew up in Cleveland and now invest there long distance from  California.  I would tread lightly in Glenville.  If you don't have a very experienced property manager who specifically deals with that area, I would pass.   There are plenty of affordable properties in less risky areas of town.  

Originally posted by @Callum Cameron :

Hi, I am a UK resident and am thinking of purchasing a turnkey rental property in Cleveland via Global Investments. I would appreciate any advice from people who know the local market. The properyt I am currently looking at is on Linn Drive Glenville, is this a war zone? Any advice greatly appreaciated

Thanks

Callum

I won't say whether you should or should not buy in Glenville but I will state that Glenville is a highly distressed neighborhood. This is one of the lowest quality neighborhoods in the entire Cleveland area. I actually just shot a listing agreement over to someone for a Glenville property today. The expected sales price is going to be between $3,000 & $7,000. Ask yourself, how bad can the neighborhood be if houses will sell for that price point? Who is going to be willing to live there?

I created The Ultimate Guide to Grading Cleveland Neighborhoods to give out of state investors like yourself an idea of what's what in our market. You can pick neighborhoods with $7,000 houses that are all torn up and then renovated to sell for around $30,000 or so but note that you'll end up with a different quality of tenant than if you picked a neighborhood with houses priced at $75,000. It's not like the rest of us paying $75,000 for similar rents aren't as smart as you & we weren't able to find those $7,000 houses. They aren't a secret, lol. They are right there on the MLS or Zillow open for bidding.

Below is some of the fun you can expect when buying houses in areas like Glenville.

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Junkies also stole the copper plumbing. No, the junkies are never thoughtful enough to turn the water off before they start cutting.

Real Estate Investing Disaster as told by James Wise. junkies also stole the copper plumbing. No, the junkies are never thoughtful enough to turn the water off before they start cutting.

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Typical look of a savage tenant's kitchen after they move out. Don't think that your lease saying they need to clean it means anything to a savage..........It doesn't.

James Wise. Tenants from hell. Typical look of a savage tenant's kitchen after they move out. Don't think that your lease saying they need to clean it means anything to a savage..........It doesn't.

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I challenge everyone on Bigger Pockets who is reading this post to guess what is even going on in this photo. I'll toss you a vote if you get it right.

Tenants from Hell. Landlord James Wise shows some of the worst damage that tenants from hell have done to holton-wise's properties

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This toilet right here needs no caption. I will give a vote to the Bigger Pockets investor who provides the best caption for this photo of a toilet. (Yes the tenant was still living there the day before & day after this photo was taken)

James Wise. Tenants from Hell. Most disgusting toilet in the world.

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How'd you like to take a bath in this sucker!

Most disgusting bathtub in America as told by Real Estate Investor James Wise from Holton-Wise

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Savage tenants's in the ghetto are known for their great yard work!

Real Estate Investor James Wise shows landlords the worst of the worst when it comes to lawncare

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Kids...........It's time for bed!

James Wise shows a filthy bed bug covered mattress

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Close up of the above bed....If you are wondering, this is what a bed bug infestation looks like.

Holton Wise founder and real estate investor James wise shows a bed bug infested bedroom

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It's not all bad though. Like I said this savage business has made me a very wealthy man. I just don't want to see investors trick themselves into thinking that this family below is moving into their $15,000 house...........They ain't.

Myself I prefer upper C-Class to B-Class investments at this point in my life. This puts the price point around $75,000. You still get high cash flow but you don't have to go through an all out war every single day. But to each his own, if you think you can stomach the savageness of it all go for it. As I have said you can make some serious money just be informed as to what you are walking into.

  • You will need to be on your toes at all times
  • You will run into set backs (often)
  • You will need to evict people
  • You will need to throw families onto the street
  • You will make children homeless
  • You will have your house damaged
  • You will need to hire a team of highly skilled people to be your eyes and ears on the ground
  • You will pay a premium for services provided on your real estate portfolio
  • You will be harshly judged by those outside of the industry
  • You will need to make decision based on the best interest of your business and not your feelings

Works out great for some. Not so great for others. It's all about you and how you see yourself as a business owner, investor and what are you willing to deal with in your career.

Hi James,

Thanks for the reply, I have actually started following your YouTube Channel and watched a number if your video as so far, they have been very helpful. If I am going to invest it will now be at the Kevel you have mentioned, C or B. I have sent a request through in your company website and hope to be able to do business in the near future.

Originally posted by @Callum Cameron :

Hi James,

Thanks for the reply, I have actually started following your YouTube Channel and watched a number if your video as so far, they have been very helpful. If I am going to invest it will now be at the Kevel you have mentioned, C or B. I have sent a request through in your company website and hope to be able to do business in the near future.

Glad to hear it. That's good stuff. Keep an eye on that inbox & possibly the spam folder. You'll be getting some info soon if you haven't already.

@James Wise ... I think I just threw up in my mouth after looking at your pix! But I want to play, and I didn't see any guesses on the kitchen.... did they lay down cat food to attract all the neighborhood cats? And what is up w/that toilet?? Is it burned? And the tub.... is something floating in there?

@Mike Robinson - Some thoughts on those lower priced MFH's we were discussing.