2-4 unit investment properties in Cleveland

[Chad McLeod]

Hey all,

I've been looking at 2-4 unit properties in Cleveland recently and I was hoping some of the local experts might be able to help out with a few questions:

1)  Almost everything I see online are duplexes or apartment buildings.  Are there any areas where tri and 4-plexes are more common?  I' would prefer to stay in B areas, if possible.

2) The areas I've been researching the most are Cleveland Heights, South Euclid, Lakewood and Parma.  Are there other B areas I could/should be looking at?

3) I'm not really looking for "cheap" properties, as I want to be in a good area with quality tenants, so if we're talking about duplexes I would probably be topping out at $150 - $175 or so.  This would be for properties that are in good shape and need minimal, if any, repairs.  Is this a realistic price range?

4) Lastly, can someone tell me why the property taxes are so high out there??  I feel like everytime I think I find a deal I look at the property taxes and they blow it up.  I live just outside of Seattle and a lot of the properties in Cleveland have higher taxes than we do!

Thanks in advance for your thoughts.  I appreciate it!

[James Wise]

Originally posted by @Chad McLeod:

Hey all,

I've been looking at 2-4 unit properties in Cleveland recently and I was hoping some of the local experts might be able to help out with a few questions:

1)  Almost everything I see online are duplexes or apartment buildings.  Are there any areas where tri and 4-plexes are more common?  I' would prefer to stay in B areas, if possible.

2) The areas I've been researching the most are Cleveland Heights, South Euclid, Lakewood and Parma.  Are there other B areas I could/should be looking at?

3) I'm not really looking for "cheap" properties, as I want to be in a good area with quality tenants, so if we're talking about duplexes I would probably be topping out at $150 - $175 or so.  This would be for properties that are in good shape and need minimal, if any, repairs.  Is this a realistic price range?

4) Lastly, can someone tell me why the property taxes are so high out there??  I feel like everytime I think I find a deal I look at the property taxes and they blow it up.  I live just outside of Seattle and a lot of the properties in Cleveland have higher taxes than we do!

Thanks in advance for your thoughts.  I appreciate it!

 Really isn't a big concentration of 3-4 unit properties anywhere in the Cleveland market. Tons of single family homes and duplexes then it jumps to a big inventory of 6 unit apartment buildings. As for taxes the specific suburbs you are looking at are the highest in the market. Take a look at The Ultimate Guide to Grading Cleveland Neighborhoods as I have listed the tax rate of every neighborhood in our market. Cleveland itself will give you a much lower tax rate than Cleveland Heights or Lakewood.