Investing in Lorain, Ohio

[Paul Sundin]

I am working with an investment group who are looking at a portfolio of single family homes located in Lorain, OH.  Now I have many clients who have bought in the Cleveland suburbs and am somewhat familiar with the surrounding areas.  But not so much with Lorain.  I just want to see if anybody has experience in the area and can offer any guidance on the market.  

Specifically, I want to know:

1) how strong is the resale market

2) how strong is the rental market (I know a couple companies just announced layoffs)

3) I know that a POS inspection is required but not sure if anybody has had experience with the local housing authority

Any other info is greatly appreciated!

[Isaac Rowe]

@Paul Sundin 

My Broker does a good amount of PM out in Lorain, and the market is slower moving then in Cleveland.  There are still deals out there, but you have to anticipate longer resale times, and longer gaps between tenants.  

In terms of rents, I would be very careful to screen the amounts your being told the properties rent for, as they tend to be a bit lower then Cleveland, although taxes are also lower, as well as water costs. Make sure you get proof, or get someone to send you rental comps if there are any, as a lot of the properties out there aren't rented via the MLS so there isn't a lot of data, except for scanning rental sites to see what people are asking.

The POS is new as of last year, and they aren't nearly as difficult to work with as many of the Cleveland Suburb areas.  They are quicker, and have more flexibility at this point.  That may change...If they are looking at a portfolio from a current owner, he should take care of the POS issues as part of the deal.  If he isn't willing to that is probably a sign that he has let maintenance go and could signal potential headaches for your buyer down the line.  

Anyway, feel free to reach out if you have any more questions.  Hopefully this is helpful.