EASTSIDE of CLEVELAND INVEST

[Keith O.]

Its seems like all investors are seeking property on the west side of Cleveland. Are there any investors who invest on the East side? What are your experiences and methods. It seems Like property might cashflow better? I also have couple duplexs on the east side I'm trying to sell.

[Michael Swan]

I have 8 single family in Euclid that cash flow smartly!! I have owned single family there since October of 2014. We have had one vacancy in 2 years. If you have the right PM it is a great area to invest for cash flow and recently I noticed a 4br/1ba on Roger that just sold for about $60,000. I bought one on Roger with a nice size front yard and garage for about $30,000 in 2015. Mine may be a little smaller square feet inside. I believe we put about $8,000.00 to make ready to rent. That house rents for $995.00. Besides this one. I have 7 more nice 1/2 duplexes there and a nice 11 unit fully rented apartment complex on the corner of Euclid Ave. and Beverly Hills. It is in really nice condition and we purchased in Feb of 2015 for $480,000.00 with no section 8 tenants. Plus, I really like Lake County. In Painesville, I own a fully occupied 21 unit purchased in Oct 2016, 12 unit townhouses purchased in Nov 2016, and 15 unit sept 2015. The 15 unit, we have increased NOI by $8,000 so far and are pushing rents up further this spring and expect NOI to be increase $13,000-$15,000 in the next 18 months. That will make the value of the property $130,000-$150,000 more than we paid. A few of these complexes were value and yield plays and the one like Beverly Hills (corner of Euclid Ave. and Beverly Hills) was primarily a yield play for cash flow. The area we have had the worst luck with is an over improved 10 unit on Noble Rd a few streets North of Monticello has been a nightmare!! High RE taxes, difficult tenants, Cleveland height CMHA problems, trash collection issues. Also surprised that Shaker Heights yield play has not panned out either. Sooooo, those will be the first two to sell, cut our losses and move to areas easier to deal with the government agencies etc...

Swanny