First Deal- Cleveland Market

[Jeff Mackey]

This is my first post on bigger pockets. I found the website 4 years ago knowing that I would be returning when I had enough capital to enter the game. I am brand new to real estate investing. I began investing in the stock market 4 years ago. Like everybody else, I have performed quite well and have decided to diversify my holdings with property. I have a ton of student debt to payoff and am looking to have rental cash flow subsidize my payments. My father and I are closing on our first rental property (duplex) in the coming days. Net our mortgage, taxes, and insurance, we should be producing approx. $800 in cash flow. We figure to put aside 20% of this for vacancies and maintenance. I wanted to get thoughts on the west side of Cleveland from individuals that have more experience. I currently live in Lakewood, my girlfriend owns 2 properties on a single parcel allowing us to pay $300 a month. Her purchase was definitely eye opening. The property values on the west side of Cleveland (rocky river, lakewood, west park, bay village, Westlake, etc.) have seen tremendous appreciation over the last 3-4 years. Lending rates are still at a historically low %. We'd like to add another property in the next 6-9 months. Any thoughts on whether individuals are overpaying in the general marketplace? Seems like the average selling price can range from 5-10% over asking and they sell in 24-36 hours.

Thanks in advance for participation