Investing in Parma OH

[Amir B.]

Hi BP Community,

I am planning a trip to Cleveland in November to analyze the Parma, Strongsville, and Brooklyn area. I am considering a SFH or maybe a MFH. Has anyone had any success there? I am looking at properties under $120,000 price range. Looking for rental income.

Thank you.

[Account Closed]

I have one in Parma.  Pretty happy with it.  I put under contract in January.  In it for ~70k (61k + 9k repairs) and it pulls in 950/mo since April this year.  The purchase market is already higher though with less stuff available, probably expect to be all in on a 3/1 for closer to 80k now for a similar house.  (BTW, just about every house in parma are carbon copies of each other, they all look identical so once you see a few, you've seen most of them.)  But it's a nice area.  Much nicer than I expected having been to crappier areas of Cleveland.  Strongsville is nicer yet, A area but more $$.  Both are towns that I would not have a problem living in most parts of, if I had a reason to live in NE Ohio.  (I don't, though.)

The great deals relative what I mention above is harder to find now.  There are a few houses under 70k.  Some in the 50's and lower, but I'm sure they have major, major problems and would require massive renovation $.  I prefer to find one that is in rough cosmetic shape, but with a good roof, furnace, etc...  Paint / carpet / etc. is easier to do.

I'd consider doing Ohio house hunting once the winter weather hits.  Unless it's a mild winter, Ohio winters suck, and people who have their stuff listed then, REALLY want to sell it.  :)

Edit: More info for you - I have it under mgmt and my after PITI & mgmt cash flow is about $300+ / mo. Closer to under 200 when reserving vacanacy / capex budget. But the monthly payment is like, 250 a month... so even if I had a vacant month, it's not like I'm going to be scrambling for making my own bill payments. :) I'm working on getting #2 really soon. The return is better on these houses than what I'm getting in the stock market (except for 2013 or whatever crazy up year we had somewhat recently.)