Upcoming areas near Cleveland?

Question

Hey everybody, I am just starting my real estate journey and am looking for a duplex to House Hack near the Cleveland area and wanted to hear your suggestions on good areas! Any areas I should desperately avoid? Thank you in advance!

Drew Sygit · Answer

@Zach Bremer

Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't truly take the time to understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Good luck with whatever you decide😊

Alex Case · Answer

i also am looking in the cleveland area

Shane Kelly · Answer

I plan to househack in a duplex, triplex, quadplex when I buy my first primary residence in the next few years and when I do I am looking to be in Old Brooklyn, Lakewood, the West-side of Cleveland proper, Brooklyn, or Berea. Berea is my #1 pick by far. Best schools of the cities I mentioned, tons of Metroparks (nature), and is a very affordable B class neighborhood with some lovely houses. All of the areas I mentioned are C to B class and I think this is an important fact to consider when you're looking to househack. What level of area can you tolerate within your price range? That will depend on you of course.

Joshua Janus · Answer

Lakewood, Edgewater, Detroit Shoreway and Ohio City are all cool areas on the west side with plenty of MFH's to house hack.

Aj Parikh · Answer

I am heavily invested in Maple Heights. Its a C+ area but there is a lot of demand for housing so works out well. Good Luck!!

Nicholas Salman · Answer

Hey, Zach that is super exciting! I am born and raised in the Cleveland area and have a duplex of my own.  Let's hop on a call and see what you have going on, I would love to help!

Erin Dorsey Robinson · Answer

Hi Alex,

What are you looking for? Let me know if I can be of assistance as you are considering your options. Glad to discuss some strategies, areas, etc. Feel free to email me directly if you would like to talk through your ideas or ask some questions.

Erin Dorsey Robinson · Answer

@Zach Bremer Welcome to the BP Community! I think to really give you a good answer to your question I would need a little more information about you and your goals. Good is highly subjective but I would be glad to chat with you and dig a little deeper into what might be good for you. My husband and I are investors here locally and I always enjoy pointing new investors in the right direction and sharing some contacts- lenders, contractors, property managers, etc. who might help you along the way. Feel free to email me directly if you ever want to chat. Wishing you all the best!

Nicholas Misch · Answer

Congrats on starting your journey. You should connect with a local expert so they can better communicate with you all the nuisances of Cleveland's neighborhoods.

Upcoming areas near Cleveland?

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