my first multifamily rental - best cities/price range for cashflo

Multi-Family and Apartment Investing
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my first multifamily rental - best cities/price range for cashflo

Justin Platis
Member since 2019 · 1 post · 2 votes

Looking to buy my first multi-family investment in order to start some cash flow.

Started looking at Cleveland (as that appears to fit my price and where numbers work) but I am open to any city)

I would prefer to put down $100K or less. 

Thanks for any help!

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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
Quote from @Justin Platis:

Looking to buy my first multi-family investment in order to start some cash flow.

Started looking at Cleveland (as that appears to fit my price and where numbers work) but I am open to any city)

I would prefer to put down $100K or less. 

Thanks for any help!




Cleveland, Ohio is one of the best Midwest cities for cash flow! It is home to the #2 Hospital system in the world, Cleveland Clinic.
https://newsroom.clevelandclin...
The job market here is strong and is a common place for out of state investors to buy into for the cash flow.
[email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
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  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y
    Quote from @Justin Platis:

    Looking to buy my first multi-family investment in order to start some cash flow.

    Started looking at Cleveland (as that appears to fit my price and where numbers work) but I am open to any city)

    I would prefer to put down $100K or less. 

    Thanks for any help!




    Cleveland, Ohio is one of the best Midwest cities for cash flow! It is home to the #2 Hospital system in the world, Cleveland Clinic.
    https://newsroom.clevelandclin...
    The job market here is strong and is a common place for out of state investors to buy into for the cash flow.
    [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
    3Reply
  • Shane Kelly
    Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    4y

    There are quite a few multifamilies in Cleveland you can buy with $100k down. If you're doing this OOS like it sounds like, you're gonna need a decent sized team to make that work. I like your initial thought here as making these connections will be pivotal to making this work.

    2Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Justin Platis
    I would also consider looking at Cincinnati OH. You can get good cash flow there as well by putting down 100k or less. 

    [email protected]614-412-4565
    Reafco-557 Reviews
    View Page
    2Reply
  • Freddie Williams
    Rental Property Investor · Norfolk, VA · Member since 2016 · 101 posts · 29 votes
    4y
    Quote from @Justin Platis:

    Looking to buy my first multi-family investment in order to start some cash flow.

    Started looking at Cleveland (as that appears to fit my price and where numbers work) but I am open to any city)

    I would prefer to put down $100K or less. 

    Thanks for any help!

    Awesome
    0Reply
  • Colton Hahn
    Specialist · Member since 2021 · 322 posts · 273 votes
    4y
    Quote from @Justin Platis:

    Looking to buy my first multi-family investment in order to start some cash flow.

    Started looking at Cleveland (as that appears to fit my price and where numbers work) but I am open to any city)

    I would prefer to put down $100K or less. 

    Thanks for any help!


     We focus solely on the midwest, we have found the region is uniquely filled with many opportunities for solid cash flow. Indianapolis, Des Moines, Ft Wayne are all areas we know and love here for the next 5-10 years :)

    0Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    4y
    Are you wanting residential or commercial multi-family? $100k down can get you into small commercial if you're interested. Also, do you want value-add properties or rent-ready/turnkey?
    1Reply
  • Tyler LingleBusiness Member
    Real Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
    4y

    I would second Indianapolis. I know the small multi market well in Indy. 2-4 units. We have quite a few strong areas of town that still cash flow and should appreciate a lot, too. I just helped an investor lock in a quadplex for $275,000 and each unit was renting for $800. These deals are getting harder to come by but they are out there. 

    [email protected]
    Roots Realty Co. 563 Reviews
    WebsiteView Page
    0Reply
  • Nicholas MischPro Member
    Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
    4y

    $100k in Cleveland would give you many options. Your money definitely goes far here. 

    0Reply
  • Zachary Elliott
    Real Estate Agent · Burlington, KY · Member since 2018 · 207 posts · 232 votes
    4y

    @Patrick Drury is right on. You should consider looking at Cincinnati.

    0Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    4y

    @Justin Platis, do you plan to actually visit your property? I mention this because travel costs can significantly effect your cash flows. Assuming 75% LTV, you are talking $400k purchase. Realistically, you might be able to cash flow $500/mo, or $6k/yr, not including any travel expenses. You fly to Cleveland once per year, with an uber, a couple meals and one night hotel room. You are out $1,000, give or take. So your $6k/yr is now $5k/yr.

    Cincinnati is notoriously expensive to fly into.  Not sure about Cleveland, but I mention this mostly to make sure you are taking in all costs associated with OOS investing.

    If you have a W2 and there is an office in a more affordable market that you travel to regularly as part of your job, you might want to consider that.

    0Reply
  • Jake KnightPro Member
    Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
    4y
    Quote from @Tyler Lingle:

    I would second Indianapolis. I know the small multi market well in Indy. 2-4 units. We have quite a few strong areas of town that still cash flow and should appreciate a lot, too. I just helped an investor lock in a quadplex for $275,000 and each unit was renting for $800. These deals are getting harder to come by but they are out there. 


     These deals are hard to find now, great job getting that!  

    0Reply
  • Jake KnightPro Member
    Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
    4y

    Hey Justin,

    Our market here is doing great. 

    Duplexes are really common here but there are much fewer quads unfortunately. It's really all about finding the right deal at that right time. REI has really picked up in recent years in the Midwest so be prepared to pull the trigger when the right deal arises as properties can sell rather quickly if they cash flow.

    0Reply
  • Josie Brown
    Detroit, MI · Member since 2022 · 118 posts · 49 votes
    4y

    Hi Justin! There are some areas in and around Detroit that are great to invest in. You can definitely find a duplex within your budget that will produce a great cap rate. If you're interested, feel free to reach out and we can discuss this further!

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    4y
    Quote from @Justin Platis:

    Looking to buy my first multi-family investment in order to start some cash flow.

    Started looking at Cleveland (as that appears to fit my price and where numbers work) but I am open to any city)

    I would prefer to put down $100K or less. 

    Thanks for any help!


     Justin since you're looking into Cleveland you'll want to check out The Ultimate Guide to Grading Cleveland Neighborhoods. Lots of variables to consider when coming to this market. I see so many out of staties coming here unable to understand why properties in one part of town are half the price of other parts. This guide provides some color as to why that is so you can invest accordingly.

    0Reply
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