Seattle, WA · Member since 2013 · 70 posts · 33 votes
I'd like to hear from anyone investing or invested in the Cleveland rental market. I'm looking into purchasing a duplex or two in the Cleveland area for long term rentals.
Cleveland, OH · Member since 2013 · 150 posts · 62 votes
12y
I came to Cleveland from Key West, Fl. I met my wife here and didn't even know where to begin in terms of work until I saw a month later after being here that I can buy a duplex for 8k to 30k in a high rental area, in Fl you won't buy anything decent for under 200k, so here I am now and I actually put together a really nice portfolio in less than 2 years being here!
For you guys out there wanting advice for Cleveland props, I learned this market from a very successful woman that got very wealthy here doing this!
Rule number 1. Don't make the mistake of buying ANYTHING on the east side! I almost made the mistake but listened and saw it all go down, they will destroy everything, steal your water tanks, furnaces, fixtures or anything that they can get a dollar for!
I decided to invest in the areas in the west side which is just a tad more money (8k to 35k) and this area includes west park, west side, old brooklyn. I was a contractor in Fl for a long time so I rehab my own with a couple 12.00 hour guys as helpers so my rehab costs are lower than most since I do alot myself. I buy mostly duplexes and im renting 2 bedroom units from 585.00 month to 600.00 per month. 3 bedrooms from 600.00 to 675.00, expect to pay 125.00 average per month in water & sewer since owner pays that in multi-unit props. Now here is what nobody like to hear, Cleveland tenants are somewhat unstable and like to move alot, they also mostly all like to have pit bulls as pets, they will come to look an apt and give you a deposit and then a week later after you took apt off the market, they call you and want deposit back, so you just lost time & money! Also the local help is garbage so repairs can be expensive by qualified people. Also they love to pay late ( they live paycheck to paycheck ) and some are dirty and bring bedbugs in to your house and it costs us money to correct issue.
Well there is good and bad in every business but i'm happy with this here, I actually ended up with 25 of these duplexes and making good money overall! I'm selling a couple of my properties now to buy something in Avon Lake as new personal home, so if any of you guys out there interested in some nice turnkey props, let me know and I can even manage for you if you buy it. For those of you looking for a property manager, I offer this service for only west side investors and my rate is 15% of gross rents, i'm a bit higher than others but my experience speaks for itself, my company does it all from rehabing to placing tenants, we do it all in house so we don't call roto-rooter to snake your drains, we do it at a rate where you making money and so are we.
Good luck guys! Any info needed? I'll be happy to entertain
Specialist · Strongsville, OH · Member since 2016 · 303 posts · 217 votes
8y
East Cleveland is rough as it gets right now. I insure some landlord properties in that area and I typically won't do any inspections without #1 CCW and #2 getting there and leaving by 10am. Follow Cleveland.com on your newsfeed and you can get the daily murder stories. That said the worst crime is concentrated and outside of that there are great parts of Cleveland to live and/or invest in.
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
8y
@Jørgen T. You can do much better than an East Cleveland duplex for $54k. You can actually spend that amount & buy duplex in a much nicer part of the city. However I recommend bumping the budget up to the $75k+ range & buying a duplex in an even better area. At the $75k price point you'll be in a C-Class area which isn't the greatest but it certainly isn't a war-zone like East Cleveland.
One of my clients just got shot in the back of the head earlier this year in that area. he survived with the bullet went through his neck and severed one of his vocal cords
looking at properties in Old Brooklyn. Does anyone have any opinions on this area from a long term rental perspective.
Also, trying to understand how much to budget for water and sewer on a monthly basis for a duplex.
Trying to determine if cash flow is doable in this area with realistic numbers and regular maintenance costs.
Any help would be greatly appreciated!
We have hundreds of properties over there in Old Brooklyn. Overall the whole neighborhood can generally be classified as C-CLASS. The further southwest the better. The area North of Denison & to a lesser degree on the east of that neighborhood over by State Rd is the lowest quality. When your close to Biddulph & Ridge it's a better area.
Stockholm, Stockholms län · Member since 2017 · 2 posts · 1 vote
8y
Thanks for the feedback all! And @Marc Ramsay thanks for the offer to contact. I think I'd stay away from (east) cleveland for now. Specially also because it's far away and I've no sense of the area, it might be really hard. @James Wise thanks for the insight on prices and budget.
Investor · Ojochal, Costa Rica · Member since 2013 · 287 posts · 164 votes
8y
@Eric Booker, apparently it's booming. I just saw a portfolio listing of EC apartments at $35K a door. Unbelievable. Somebody is pretty ambitious and looking for an investor who doesn't know better.. :)
@Eric Booker, apparently it's booming. I just saw a portfolio listing of EC apartments at $35K a door. Unbelievable. Somebody is pretty ambitious and looking for an investor who doesn't know better.. :)
Investor · Ojochal, Costa Rica · Member since 2013 · 287 posts · 164 votes
8y
@Matt Motil The funny thing was, 2 of the buildings were ones I flipped years ago. When I did the proforma's on them, there was no way they could even justify $35K per door.
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
8y
Seconding @Tom Ott. I wouldn't go near East Cleveland anytime soon. There's talk of merging East Cleveland with the City of Cleveland. I know very little details, but if it would be effective in cleaning that war zone up, I hope it happens.