Still investing in Cleveland/sub-markets?

Question

Anyone still seeing 1% or above cash-flow and appreciation in Cleveland and/or submarkets around it? I.e. Euclid, Maple Heights, as far east as Lorain or even as far south as Akron? (Looking to spend 130 or less)

Just looking for advice, this would be my first property and I'd like to get cash flow while being in a non crime filled area, and being able to count on at least some future appreciation.

Samuel Diouf · Answer

Hey Jhamari, you can still find deals like this. With a budget of $130k I would make sure that you still have at least 6 months of reserves after the purchase.

I would also be careful in certain areas where the cash-flow looks too good to be true.. The property will probably be a money pit for a variety of different reasons. The main one being the location. A good way to check the reliability of a property is to see how many times it's been transferred throughout the years. If a property is being sold every year, there's probably a reason no one wants to hold on to it.

Joshua Janus · Answer

Single families in relatively good shape in Cleveland are around 90-120k with 1% or better rents. Duplexes are 140-180k for the most part as well.

Patrick Drury · Answer

@Jhamari HoganWith 130k or less you would probably be looking at a single-family rental in those areas. Since you mentioned Mapple heights keep in mind that area will have a Point of sale inspection or POS as a lot of people refer to it. That will be pretty common with a lot of suburbs on the east side.

Evan Hopple · Answer

@Jhamari HoganCleveland has solid deals that are cashflow positive. Columbus could be another option with better metrics for long-term appreciation, but the cash flow will be tighter compared to Cleveland.

Bob Stevens · Answer

As long as its renovated PROPERLY and tenants are screened all should be good.

Cameron Green · Answer

Hi Jhamari,

I live in Cleveland Heights, and have three rental properties in safe neighborhoods throughout Cleveland/Cleveland suburbs. I would be cautious with Lorain, I don't know that area as well, but there is a high rate of crime in that area.

I purchased a home 1 1/2 years ago for around 130, and I am currently renting it for 1,750, so it is possible! We put a bit of work into it, but total cost to update it was less than $5,000.

Alfath Ahmed · Answer

Yes you can still find 1 to 1.5% rule (sometimes) in Cleveland. I really like Old Brooklyn, Shaker square, and Euclid. Solid areas to find good deals.

Jack Krusinski · Answer

Hi Jhamari. Yes, I have seen a good number of deals like this. I have a good number of off-market properties that meet this requirement. Some are fully occupied, and some are vacant. Price point-wise, for a single-family home, it is around $115K to $135K. For MF, it is around  $130K (low end, and this is very hard to find and will most likely need some work) to $300K. I have found the sweet spot to be $150K-200K.

Account Closed · Answer

Hi, yes all of those areas definitely great areas to invest in real estate my clients would agree also, Ohio has a competitive market. It would be helpful to do your homework on any areas that you are interested in investing in Ohio or anywhere in the world. Please feel free to reach out if you have any questions. Best Wishes!

Bob Stevens · Answer

ALL mine are 2, 3 %ish rule, all in 75k, rent will be 1700, All in 90K, rent will be 1800- 2k, all in MH 95k, rent will be 1700ish, 1% is VERY easy.

BTW NEVER buy the prop just because its the 1% rule, MASSIVE mistake. So, if it's rented for 1700 this means you are ok paying 170k, right? Well HUGE mistake and way overpaying. I see so many overpaying just because it looks good on paper.  Example, I know an investor that paid 150K for a 3 br with rent of 1500. Well, the value of that prop is only about 130k, as is. Another was going to pay 130k for a duplex in N Collinwood rent would be 2k, sounds great right? Well, it needed 40k in reno, so TERRIBLE. But even with the 40k reno still all in 170kish, so still better than the 1% rule right?  However, anyone with experience is very aware a duplex there is NOT valued at 170k, more like 130kisH renovated. So, as you see you should never purchase just because ( some ignorant/ guru) said you should follow this 1% rule.

Good luck

Still investing in Cleveland/sub-markets?

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