I’m looking to buy an investment property in Cleveland Ohio. Which cities / neighborhoods are current hot markets ? Also what are some common problems with the properties out there (eg roofing, pipes, electrical, etc) ?
Side note: Is there anyone who would like to partner up on an investment over there ?
I work a full time demanding W2 job, so not a big fan of brrr as it takes too much time. I try to scale my limited hours to simple criteria / investment thesis.
I bought in NW San Antonio by Helotes. I’m a buy and hold long term investor (15-30 years). So, I try to keep it simple. My simple criteria entails the following for all my purchases:
1) Must meet .8% or close to 1% rule (so need cash flow)
2) A or B+ Areas
3) Must be in an appreciation area (I bought in an area that would have potential upside since it’s by Helotes
4) Must have solid school system (7 and above) if in suburbs or in a “Hip” area that is walking distances to bars/restaurants (this applies more for downtown area investments)
Note- since I’m such a long term buy and hold investor, if any of these criteria goes side ways, I still come up on top in long run. Just need to divest if neighborhood starts deteriorating. Also, I have 12 months of reserve on each property under worst case scenarios. This way, I’m protected in downside if worst case, i get no rent / tenant for 12 months. I’m super conservative, but helps me sleep at night and continue to play this real estate game as a side hustle.
Hi Masood! I've also been researching this topic myself! The top markets that always seem to come up are: Texas - Houston/Dallas/Austin, Washington, D.C., Raleigh-Durham, Huntsville, AL, Boise, ID, Florida - Tampa/St. Pete and Orlando, Denver, Phoenix AND Cleveland too! There are a few more, but these are the markets I am most interested in. I look for markets that have population growth and potential for jobs growth.
All this being said, residential real estate in most primary and secondary markets has been "hot" for awhile. Most of the country is experiencing low inventory.
As a realtor in Buffalo, NY, I would say the #1 problem I see is WATER! Cleveland is a very similar market. Water is the most damaging force to your property. People don't take proper action to keep water out and away from houses. Sump pumps to keep the basement dry, cleaning gutters and directing water away from foundations with downspouts and grading are often overlooked. The water gets in and over time, causes lots of problems.
Hope this helps. You are welcome to connect/PM me.
@Gretchen Guarino I agree with most of the cities you've listed. I am located in Huntsville, Al and can confirm it is a hot market now. Last year, you could buy/sell without worrying so much if the offer would get accepted. Now, its a "fingers crossed" situation when there's a new property for sale, its a shark fest! Got to get in with the investors and see the off-market properties before they get actively listed and thrown to the sharks. The investor circle is more tight knit around here, maybe because its the south, but a lot of them are weary to have so many out of state investors buying up their land and homes and renting them out at maxed prices. Plenty of homeowners here still charge, month to month $400 rents in areas ARV for $1,200 rents! Its insane. Agents must control the listings, because: Huntsville is now a sellers market.
And we are about to start seeing "The Drive" where the people moving to our town are ok with driving, 1 hour/1 1/2 hours to work and seeking property in the areas adjacent. Being well versed in these markets help tremendously so that way you know for certain that's a good deal, that's not, etc.
Orlando, FL is a really hot market. We have insight of many companies coming to Orlando such as Disney corporate from California. There is a massive plan for Osceola county to construct a 50 year project of a town called neo city which has technology advances... Areas like this give you the opportunity at appreciation. Another area to check close by is new construction sales here are on fire... were talking every few months the appreciation is moving up in the same neighborhood within the same development!
Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.
@Allen Wu I personally like San Antonio from my visits and am interested in the market. What is the play in San Antonio? The taxes being higher in Texas, are you looking at BRRRRs or buy and holds too? Can you highlight what neighborhoods of San Antonio are good to invest in and which ones to avoid?
I work a full time demanding W2 job, so not a big fan of brrr as it takes too much time. I try to scale my limited hours to simple criteria / investment thesis.
I bought in NW San Antonio by Helotes. I’m a buy and hold long term investor (15-30 years). So, I try to keep it simple. My simple criteria entails the following for all my purchases:
1) Must meet .8% or close to 1% rule (so need cash flow)
2) A or B+ Areas
3) Must be in an appreciation area (I bought in an area that would have potential upside since it’s by Helotes
4) Must have solid school system (7 and above) if in suburbs or in a “Hip” area that is walking distances to bars/restaurants (this applies more for downtown area investments)
Note- since I’m such a long term buy and hold investor, if any of these criteria goes side ways, I still come up on top in long run. Just need to divest if neighborhood starts deteriorating. Also, I have 12 months of reserve on each property under worst case scenarios. This way, I’m protected in downside if worst case, i get no rent / tenant for 12 months. I’m super conservative, but helps me sleep at night and continue to play this real estate game as a side hustle.