All Forum Posts by: Andrew Weiner

First of all I love the name.  As far as Ravenna goes it is a popular and growing area however it is still a "secondary" market.  One down side of a secondary market is that in the past when the economy has issues the ripple effects are felt more strongly in the secondary markets.  You will also have less options when it comes to property management and maintenance.  Overall if you have a strong screening process and get a good tenant with consistent income then you can do well anywhere.  I would recommend finding someone that covers the area ahead of buying because not everyone will go so far out of their core market to cover a one off property. 

I also had an issue with some lenders not willing to lend on properties that are under 100K.  I would check with Huntington Bank, Cross Country Mortgage, or if you PM me I can share the names of a few private hard money lenders but their rates are usually 1-3 points higher than a bank will offer.   

@James Humphreys what kind of cash flow or cash on cash are your trying to get?  Are you a cash buyer or financing?  There are a few details that would be needed to see why you aren’t hitting the numbers in those zip codes.  One word of advice in 44119 is watch out for East Cleveland, it’s not the same as Cleveland or Euclid.

There are specific municipalities in the Cleveland area that prohibit a water and sewer fee because they are not individually metered.  You should check on your specific location to make sure you even have the option.

Welcome to the Cleveland market.  There are those that are more ready to jump in the deep end but Mt. Pleasant and Slavic Village are still areas that I am not ready to buy in or manage properties in.  North Collinwood and Lee Harvard might be closer to what your looking for on the east side.  Clark Fulton closer to W 25th could also be an area to check out.

If you have not been to Cleveland or haven’t been around town before I would recommend coming in and walking around these neighborhoods.  Everyone has a slightly different idea of what each property is on the letter grading system.  Also public crime stats are a good objective measure that could help in your evaluation.  

I agree with @Dave Stokley, come and walk around the neighborhoods.  The areas you mentioned are VERY diverse and your overall goals will dictate moving towards one or the other.  The single family rental market has been red hot here lately with very strong rents and demand if you can find a property at the right price.  
If possibly you should walk a house before closing also, lots of people want to rely on “boots on the ground” however I frequently get requests to manage properties that were already purchase only to be the bearer of bad news.  Licensed home inspectors don’t look for poor quality paint or worn out carpet for example that could be expensive to get a unit ready to rent.  That being said there are still lots of good deals and properties.  Even if the property condition is t perfect, if your prepared to deal with them you might get an even better deal.  
As for your creative financing, because properties are selling and owners are getting their money they have little incentive to go another route.  Hard money is a possibility, it costs more but there are less hoops to jump through.  If you need a referral shoot me a DM.

Good luck to you!

The managers don’t operate there because it’s too difficult to collect rent there, the turn over is too high, and it’s outright dangerous.  Whatever your proforma says is not accounting for the reality in the ground.  Most of my vendors won’t even take a job there, doesn’t matter what the price is. 

Make sure to check the lease that you are allowed to do it. I have heard stories that people have taken the lease and financial obligation only to find out that the building won't allow it and have to eat the cost of the lease/lease break fee. One suggestion is to start at a super low intro price to get some quick bookings and make sure to get some great reviews, with STR's the reviews are make it or break it.

I have clients that use equity trust company (etc). They have an office on the west side of Cleveland.  I have never used them personally but my clients are reasonably happy.  

Most landlords that I know won’t allow working fireplaces, the liability is big.  I agree with @Scott Mac that you should check with your insurance company and make sure your covered for that.  Last thing is that it can cause soot in the unit.  One possible alternative would a digital insert?