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
Thanks for the input fellas. I got Brooklyn Centre from Google Maps when I typed in the address to get more information about the potential property - looks like its an area between the Zoo to the Southwest, Riverside Cemetary to the Northeast where the 71 and 176 meet.
Good points on the Slavic/East of Newburgh info. I'll more than likely be staying away from those areas for now, so your hands on experience and observations are very helpful, so thank you again!
Involved In Real Estate · Clevelend, OH · Member since 2009 · 15 posts · 8 votes
12y
For anyone looking to invest in Cleveland, there are some AMAZING opportunities but Jon Holdman was right on target when he spoke about deadly traps! The Cleveland market is changing very quickly so please be careful where you're getting your information and where you are buying. I've lived here all my life and was licensed in 2006... you can literately have two similar properties just a few streets apart and one will be worth $25k and the other worth $120k. I'm touring 2 multifamily properties this weekend that will probably sell anywhere from $40k to $60k and less than 5 streets away are new townhouses, selling like hotcakes in the $270k's.
When looking for my investments, besides keeping up to date on county politics which has a huge impact on the local real estate market, I also research county transfer records (not just MLS comps) and drive the areas I'm interested in about once a month. Right now, I'm focusing on a handful of neighborhoods on Cleveland's west side... although, that could change tomorrow based on the progress of redevelopment plans in other areas of the city.
My recommendation for out of town buyers would be to shop around for someone locally that you can trust. Besides asking the basic questions about market conditions, the school system, etc., ask questions like... what intersections, roads or land marks do property values change at?...what's happening in local politics that will increase or decrease this property's value?... does this area have strict point of sale and/or inspection requirements? Someone who knows what they are talking about will be able to answer these questions.
Homeowner · Lakewood, OH · Member since 2014 · 10 posts · 2 votes
12y
Kathy,
Your post here is spot on! Thank you for writing it. I am a new investor in the Cleveland area but have also lived here my whole life. Your post will be read over and over by me as I learn and grow in this new endeavor. Thanks again!
Investor · San Diego, CA · Member since 2011 · 48 posts · 4 votes
11y
I am an out of state investor, interested in investing in the Cleveland area. I was researching on investing here and found this thread. What do investors local to Cleveland think about a multi-unit in the 3400 block on W 50th? How is the neighborhood and the quality of tenants a multi-unit in this area will get?
Also, I see that all the multi-units are close to 100 years ago. We had a home inspection done and the inspector found a settlement/crack in the foundation in the basement (picture is below). I am told it is fairly common for homes here (which are so old) to have a foundation that has some issues. Is this a true statement?
Any advice on this matter is greatly appreciated. Thanks!
I am an out of state investor, interested in investing in the Cleveland area. I was researching on investing here and found this thread. What do investors local to Cleveland think about a multi-unit in the 3400 block on W 50th? How is the neighborhood and the quality of tenants a multi-unit in this area will get?
Also, I see that all the multi-units are close to 100 years ago. We had a home inspection done and the inspector found a settlement/crack in the foundation in the basement (picture is below). I am told it is fairly common for homes here (which are so old) to have a foundation that has some issues. Is this a true statement?
Any advice on this matter is greatly appreciated. Thanks!
The settlement crack is pretty common. It's all relative to the price your paying for the home.
It's a low income area. You can do better, you can do worse.
Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
11y
not exactly a working class neighborhood, they just found a girl's body in the bushes by the tracks near there. It was in the news, she was killed in a vacant. I have a friend who's plant is over there, you will have a bumpy rental ride and low chance of resale.
Investor · San Diego, CA · Member since 2011 · 48 posts · 4 votes
11y
Thanks James and Ryan for your replies. Not being local to Cleveland, this information helps me a lot. My realtor mentioned to me that the West side is much better than the East side, and a multi-unit on W 50th street will be a good investment in the long-term.
Can you advice me on what kind of investment property is best to buy (single family or multi-unit) and where to buy in Cleveland and surrounding areas? It should be in a safer neighboorhood where the tenant management is not going to be hassle everyday. And where the property can be bought at a price where the rent/purchase price ratio makes sense from an investment perspective. Thanks again for your help.
Thanks James and Ryan for your replies. Not being local to Cleveland, this information helps me a lot. My realtor mentioned to me that the West side is much better than the East side, and a multi-unit on W 50th street will be a good investment in the long-term.
Can you advice me on what kind of investment property is best to buy (single family or multi-unit) and where to buy in Cleveland and surrounding areas? It should be in a safer neighboorhood where the tenant management is not going to be hassle everyday. And where the property can be bought at a price where the rent/purchase price ratio makes sense from an investment perspective. Thanks again for your help.
There are areas all over town that make sense. What are your expectations? The area your looking into doesn't necessarily have any upside other than housing is really cheap compared to what you can charge in rents.
Do you want appreciation?
Do you want to make as much cash flow as possible?
You can most certainly get people to rent your home in that neighborhood but it will be a low income tenant. Is that what you want?
Do you want to pay a much larger amount for the home but have an upside down the road?
You have to sacrifice some things in order to get others.
Realtor · North Fort Myers, FL · Member since 2011 · 19 posts · 4 votes
11y
Hello--
Can anyone point me to a local (Cleveland or Akron) real estate investor that might consider lending on a rehab property that my son wants to buy and hold?
His credit is good, but the house was stripped, so not financeable as is, except for 203K, which makes it not a bargain! Looking for someone to finance for short term (6 months?) until he can get it to code and re-finance with a bank. It's in a great area and he can buy it for about a third of its ARV. ($45K vs. $129K)
What do you guys think about "Daisy Ave" on West side of Cleveland? Is it an ok street to buy an investment property on?
Appreciate any information on this location. Thanks.
Not really. Pretty rough. I managed a home on that street before actually. If you get the right tenants you could be ok but you'd need really low rent to get to hand select from many many applicants.
Investor · Washington, DC · Member since 2014 · 57 posts · 13 votes
11y
I am an investor from DC and interested in Cleveland, so I found this threat incredibly helpful. I appreciate everyone like @Christian Carson@Jorge Garcia and @Account Closed who gave rich and comprehensive answers. Just a question of clarification. Can someone please enumerate the cities/communities that fall under "West Side." I am looking at a map of Cleveland, and its more of a north east and north west direction. Finally, I found a property in Maple Heights with good financials. Any areas about this neighborhood. Really appreciate everyone's time.
Rental Property Investor · Cleveland, OH · Member since 2014 · 214 posts · 86 votes
11y
Have a couple of deals in Maple Heights over the summer that took months to get done because the city was taking 60 days to get the point of sale inspections done. Always good to ask if the POS is satisfied already. Or at least done. It will have to be dealt with by you or the seller with funds put in escrow or completing the work before closing.
Investor · Washington, DC · Member since 2014 · 57 posts · 13 votes
11y
Okay, so here is my main question, and probably a naive one.
Why would someone rent a $60K multi-family house in the suburbs of Cleveland for $900-$1,000 when they can buy it and pay a mortgage of $600-$700?
Setting aside the cheap house prices and the rent to price ratio for a second, is Cleveland OH a place where more people will be moving in to live? What is the job industry like?
@Michael Wentzel - I am curious to hear your thoughts because you seem to be a diligent student and ask penetrating questions.
Rental Property Investor · Cleveland, OH · Member since 2014 · 214 posts · 86 votes
11y
The Simple answer is that people simply don't have the credit and can't afford the down payment. There are a LOT of renters in the Cleveland market. When the market crashed a ton of potential buyers became tenants for a number of reasons. I know a good number of investors that as a result of this, with SFR work with lease optioins/Creative financing.
Industry wise in the heights area on the east side specifically there is a huge amount of medical professionals. The Cleveland Clinic and University Hospitals are huge employers in the area, and seem to be ever expanding.
Rental Property Investor · Cleveland, OH · Member since 2014 · 214 posts · 86 votes
11y
Originally posted by @Account Closed:
Kyle I would not recommend self managing. Homes are old and tenants are careless. You're going to get calls all the time from your tenants and its going to drive you crazy for the monthly cash flow. I guess tenants don't know what a plunger or snake is or even bother to try to take care of issues themselves. I would just use a good property management firm. Any one have any experiences, good or bad, with PM out in the North East OH area? I currently have 10 units (5 Duplexes) under a PM, but I have only been with them for a couple of months now. Still waiting to see how well they perform once a full year has gone by. I can say they have pretty responsive and I have no compliant currently. You can take a look at my vendor Andy Morris or Realty Trust Services.
I can also recommend Andy, although I am licensed with him, so I have to disclose that! I went to college with him and have known him for many years. I am an agent that primarily works with investors, in the area looking to buy and hold, also looking to invest myself. Open to partnerships etc. I know the Cleveland area well, and am happy to provide insight or answer any questions, feel free to reach out.
Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
11y
@Weis Sherdel east and west is dictated by the Cuyahoga river. When you get a few miles south of I-480 that terminology will stop being used as prevalently.
Regarding the macroeconomics of the area, census data is available online. There has been a resurgence of downtown dwellers, which makes the news, but the county is much more than just downtown or cleveland proper for that matter. The "cleveland" market could be declining for a decade and you could be investing in Seven Hills the whole time and never notice.
The entire area is very fragmented, which is great for asset protection. Families will stay in the same general area. People may stay their entire lives on one side of the city or the other. It seems very tribal, which may have something to do with the ethnic beginnings of the area. Many areas have been predominately Polish or something else for generations.
New York City, NY · Member since 2014 · 1 post · 0 votes
11y
This is a really great thread and I'm glad to see there are Cleveland-area real estate investors actively posting on here over the past year or so, since there doesn't seem to be that much other helpful information on the internet on this topic.
I'm wondering if anyone on here has any thoughts on whether it's easier to rent out a unit in a condo highrise versus renting out a house. I'm new to investing in the Cleveland area (originally from the west side but live out of state now) and thinking about trying to buy and rent out either a 2-bedroom apartment in a condo highrise such as Lakeview's gold coast, or a house in an area such as Ohio City or Tremont. My gut feeling is it's got to be easier to rent out a highrise unit, but the posts on here seem to suggest people have found it pretty easy to rent out houses.
Any other thoughts on benefits/drawbacks on renting out a condo vs. house?
The only thought I have on the topic is that the market is much larger for renting out a house than a high rise condo. So you have many more potential renters.
Whether there is super high demand for those condos, even though the list of names is shorter, I cannot speak to that.
I have not personally known any one who has lived in those condos, but take that anecdotal evidence for what it is worth.
This is all irrespective of whether the deals make sense or not or whether financing would work out. I don't know about purchase price and HOA relative to rent rates in those condos.