All Forum Posts by: Shane Kelly

You can find very good ROI in Cleveland. Especially at lower price points in C-class areas.

I highly recommend looking at the West-side of Cleveland. Cities like Old Brooklyn, Brooklyn, Berea, and parts of Ohio City, Lakewood, and Tremont. These areas can allow for a lot of cashflow for how good of areas they are.

Two things will drive you getting off market deals. Making connections with the right people and getting creative. I feel that a lot of markets are oversaturated with people looking for deals the same way as everyone else. If you are using the same strategies as everyone does, in the same markets everyone else is in, you'll be fighting everyone. Find your niche and a place where you have an advantage or leverage and then really dive into that.

There is crime in every city. You can look at all the data online, but until you actually have driven the streets of an area, you'll never get the full picture. As a general rule of thumb, the West side of Cleveland has less crime than the East side, but each side has areas that are exceptions.

Congrats! What neighborhood of Cleveland is it in?

Quote from @Guillaume Jean Andre Palomba:

what about buying a renovated condo in a A class neighborhood? making sure the building is in good shape, and that no important renovation is needed... what are the risks?

for exemple this kind 

https://www.realtor.com/reales...

The one that you had linked above I would not say is a good deal at all if the $400 a month HOA fees are accurate. As for the idea in general, while I'm sure it could work in Cleveland if the price is right, I would say that it is likely not your best idea based solely off of not being able to add any value to it and need to pay HOA.

Quote from @Rodney Sums:

Quote from @Shane Kelly:

@Rodney Sums Westlake, North Olmstead, North Ridgeville are for the most part A areas as they're pricy, low crime, and far from the city. This makes them for poor cashflow investments due to their high price per rent. However these are some of the best spots to look at for flips as they can support a higher backend sale prices.

 Shane thank you for responding. I have a couple questions in response to that  

What do you consider poor cash flow?  

A neighborhoods tend to have higher quality tenants and properties.  Do you feel the benefits of these A neighborhoods and their respective cost savings don't offset higher cash flows that can be achieved in others?

Are there areas you recommend? 

Thank you again!

 By "poor" cashflow, I mean less than 1%. Which in my mind is very subpar for Cleveland. And yes, these areas do have high quality tenants and higher overall rent prices, but for the extra costs of purchase I wouldn't say it's worth it. You'll likely find a good balance of return vs. risk in the B areas of West Cleveland, thinking Parma, Brooklyn, Brookpark, Lakewood, and others. There are enough B-C+ areas on the West side that there are still some decent deals left, you don't have to wander as far out as Westlake or North Olmstead. Plus you'll have more PM options in these areas more near the city, which could be crucial if your an OOS investor.

Quote from @Guillaume Jean Andre Palomba:

Thanks Drew for these informations.

may i ask :

what does OOS means ?

how to check the rankings of a house , of a neighborhood ?

OOS simply means Out Of State, and as for rankings of a neighborhood, you can look at: The Ultimate Guide to Grading Cleveland Neighborhoods (I'm sure James Wise was planning on replying here with the link eventually anyways). And as for Cleveland, it's a great city, especially for Cashflow. Make connections, ask questions like you've done so far, and try to learn from the experts in the city as there are a lot of them. Lastly, we have some clients at the property management company that I work for that are French and they work with Invest US, however I can't speak much on how they are at working with the investors. From the PM's end of things though, it seems like they are expensive for their services, but maybe that's just how it looks from my perspective. Either way, I'm more than happy to help however I can. Don't be afraid to reach out.

Quote from @Lynn Berg:

@Ryan Alexander

Hi Ryan, I am looking into the Cleveland area as well. What do think of appreciation there? I heard the cash flow is good. Do you use a property management company?

 Cashflow is solid across most of the greater metro, however appreciation is not known for being great. If you want a mix of both, Columbus is a good market to look into, but if you are a cashflow-focused investor, Cleveland can take you far.

That's awesome! Congratulations.