Seeking Guidance: Property Appreciation Estimating

[Marissa Slade]

Hi All, I am a newbie and just getting started on trying to run some property analysis every day before I take the step into buying a property.  I am hoping that someone can provide me with some guidance in estimating the appreciation of a market.  Is there an equation or a certain website that you like to use for this research?  I do not need immediate cash flow so I think looking for a market with good appreciation may be a good start for me. 

I am in the Cleveland area so any recommendations of good areas are welcome. Thanks for the help!

[Min Zhang]

Hey Marissa! Welcome to the world of RE investing!  I personally love the Cleveland market for its cash flow. I invest heavily in this area as an agent. I grew up on the east side of the town with a well versed knowledge of the neighborhood. I am happy to send you my neighborhood grade map to help you get started. Let me know how I can help!

[Patrick Drury]

@Marissa Slade
In terms of areas to check out in Cleveland, I would take a look at areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

[Nadeem Alamgir]

@Marissa Slade

If you're looking for appreciation in Cleveland, I would look into Lakewood, Edgewater, Tremont, and Ohio City, to name a few. These are A to B-class pockets that have done well in regards to steady appreciation over the years.

[Samuel Diouf]

Hey Marissa, from what you're saying.. Columbus sounds like it would be a better fit for you. You'll see the more appreciation here as the population is continuing to grow at a rapid pace and there are significant projects going on all over the city.

[Ryan Arth]

@Marissa Slade If you are solely focused on appreciation, as you said, I would look more at the suburbs that have low rental property volume and are in demand for owner occupiers. This article lists the areas had the highest percentage increase in the past five years. 

https://fox8.com/news/these-cleveland-area-cities-have-the-f...

[Alfath Ahmed]

Quote from @Marissa Slade:

Hi All, I am a newbie and just getting started on trying to run some property analysis every day before I take the step into buying a property.  I am hoping that someone can provide me with some guidance in estimating the appreciation of a market.  Is there an equation or a certain website that you like to use for this research?  I do not need immediate cash flow so I think looking for a market with good appreciation may be a good start for me. 

I am in the Cleveland area so any recommendations of good areas are welcome. Thanks for the help!

Hey! I recommend looking into the Columbus market. A lot of out-of-state investors from the east and west coast are investing here due to the crazy growth over the last 3-5 years. Columbus has become a major tech hub in the midwest with large companies like Intel investing $20 billion, Amazon investing $3.5 billion, Google building 2 new data centers: one in downtown Columbus and the other in right outside of U.S. 33 in Lancaster.

I would work with an investor-friendly agent who focuses on cold-outreach methods like cold-calling, cold-texting, etc to bring you off-market deals. That is where you will be able to buy deals that are 70 to 80 cents on the dollar.

[Simon Ashbaugh]

Quote from @Marissa Slade:

Hi All, I am a newbie and just getting started on trying to run some property analysis every day before I take the step into buying a property.  I am hoping that someone can provide me with some guidance in estimating the appreciation of a market.  Is there an equation or a certain website that you like to use for this research?  I do not need immediate cash flow so I think looking for a market with good appreciation may be a good start for me. 

I am in the Cleveland area so any recommendations of good areas are welcome. Thanks for the help!

Hey Marissa, It really comes down to what you're aiming for, Cleveland's great for cashflow and areas such as Old Brooklyn, Brooklyn Centre, West Boulevard and Lakewood would be some of the area's you'd want to check out. On the other hand, since it appears you're more into appreciation, Columbus is the place to be. The appealing aspect here is the ongoing population growth and other economic factors. I'd be happy to connect if you wish to know more.

[Regina Blake]

Hi, I am an Ohio Realtor, if you have any questions please contact me. Thanks!

Regina Blake-Ohio Realtor

[Sras Sath]

Could someone provide sources to use for estimation? This person is asking for specific website. 

[Bob Stevens]

Quote from @Marissa Slade:

Hi All, I am a newbie and just getting started on trying to run some property analysis every day before I take the step into buying a property.  I am hoping that someone can provide me with some guidance in estimating the appreciation of a market.  Is there an equation or a certain website that you like to use for this research?  I do not need immediate cash flow so I think looking for a market with good appreciation may be a good start for me. 

I am in the Cleveland area so any recommendations of good areas are welcome. Thanks for the help!

 You are overthinking. Over the last 10 years ALL areas have tripled, quadrupled or more much more. Things still seem to be heading in the right direction. Equation, no just run the comps. If you are wanting rentals who cares about up or down 10- 15% when you are earning 10- 15% net income. 

All the best 

[Bob Stevens]

Quote from @Sras Sath:

Could someone provide sources to use for estimation? This person is asking for specific website. 

 ZILLOW! RUN COMPS, simple. 

here ya go, Look what you missed :) But you can still get great returns

Good luck

44109 (median home price went from roughly 50k to 125k in 8 years)

https://www.zillow.com/home-values/77009/cleveland-oh-44109/

44102 (median home price went from roughly 30k to 120k in 8 years)

https://www.zillow.com/home-values/77002/cleveland-oh-44102/

44106 (median home price went from roughly 100k to 200k in 8 years)

https://www.zillow.com/home-values/77006/cleveland-oh-44106/

[Bob Stevens]

Quote from @Nadeem Alamgir:

@Marissa Slade

If you're looking for appreciation in Cleveland, I would look into Lakewood, Edgewater, Tremont, and Ohio City, to name a few. These are A to B-class pockets that have done well in regards to steady appreciation over the years.

ALL of Cleveland and the burbs have done EXTREMLY well over the last 10 years even EAST Cleveland 

44109 (median home price went from roughly 50k to 125k in 8 years)

https://www.zillow.com/home-values/77009/cleveland-oh-44109/

44102 (median home price went from roughly 30k to 120k in 8 years)

https://www.zillow.com/home-values/77002/cleveland-oh-44102/

44106 (median home price went from roughly 100k to 200k in 8 years)

https://www.zillow.com/home-values/77006/cleveland-oh-44106/