All Forum Posts by: Ryan Arth

When you have the best product at a given price point you can shouldn't have to wait for the best applicant at that price point. Two months at an "affordable" price is a long time. The market is giving you feedback. Unfortunately the neighborhood can outweigh the product, which in this case it looks like that is what is happening. 

This is the monthly in-person meetup of Cleveland real estate investors. Now in our 10th year. 

Come meet your fellow investors, service providers, and lenders in a casual, no-pitch, environment. Your network is your net worth.We meet the last Thursday of every month.

 @Scott Trench Not to throw rocks, but you did ask for an example that we have seen a lot of lately.

https://www.biggerpockets.com/posts/user/reginab52?page=2

I'm pretty sure that Mike is offering his window installation services. 

 Correct, and PMs incentives aren't directly aligned with yours, as they are just passing through bids. They are more concerned with closing out issues than they are with getting multiple bids to get the best contractor for the job.

Honestly I try not to even mention my city name in responses because I don't want to attract the crowd, but that is me just trying to keep the issue from getting worse. 

I thought it was the same for at least every midwest market (I only see what I have keywords set up for), but apparently it is just people in our state, many of which work for the same company.

 Right, nothing is being sold that isn't being sought. CA investors, for example, are seeking yield on their capital and midwest markets can offer that (generally speaking). So BP is just the conduit to connect the supply with the demand. 

@Rehaan Khan An appropriately priced property in the suburbs does not sit on the market, especially if it is attractive to a homeowner (not just an investor). We have low supply and pent up demand, the same as anywhere else. And when they cut rates, the demand should increase as people who could afford to wait enter the market to either trade or to stop renting. 

For example, when listing houses for rent in the Akron suburbs that would be attractive as owner occupied properties, the amount of calls you get from agents and buyers asking if the client would just sell it to them. The market is hunting for more inventory, despite 7% rates.

On the one hand, some people think things are peaking here and that pricing will soften (or worse) and yet this article states that here we are in one of the last affordable markets. This should draw further capital and also people looking to relocate for the cost of living. 

Outside capital has come in and shored up pricing from the bottom up, driving up the lowest end of the pricing spectrum (or as low as investors were comfortable going). If the returns are there for the investor, they will continue to operate the property or will trade it to someone else who will do the same. These properties are the ones that show the impressive 3x and greater price gains. But if the value tripled on a 40K house you did only net 80K. So your ROI may not always be the most important metric, cash gained needs to be taken into account.

Outside of that property class, things here are super competitive, the same as everywhere else. This is especially true for homes attractive to owner occupiers. Low inventory and pent up demand are keeping prices higher (and still rising), even in a higher than previous (but historically average) interest rate environment. 

@Nathan Gesner To your point about $10,000 houses and appreciation, averages paint with broad brushes. The metro, or specifically houses in the actual city, may have experienced zero appreciation, but many in-demand suburbs did over those decades (regardless of any population decline). And there are sub $100K houses and million dollar houses within twenty minutes of each other, but the market here is generally known on BP for the lower end.

And to Allen's original point, while there is plenty of out of state attention, especially the lower you go on the price spectrum, there are plenty of people making money investing in this market (though they may not be chasing bottom dollar properties, shooting for the highest paper return possible). The same could be said for any Midwest market.