West Cleveland OH Buy and Hold duplexe's, Anyone???

[Braulio C.]

Hello,

Is anyone investing in the West side of Cleveland OH? I been doing my research for almost a year now and during the process of pulling the trigger I contacted a few local lawyers to assist me in creating a joint venture with a contractor I have been working with in Cleveland. About 6 out of 10 lawyers have been extremely skeptical about me investing in the area. In fact I feel like they were upset that I was coming out of state to invest in the local market. They claim the area is very depressed with low employment and they feel is NOT a wise investment.

I must mention that I did visit the area about 2 months ago and during my research I learned that the area is crucial/fundamental because areas can change drastically from one street to another. I have read terrible stories of out of state investors been taken advantage. I am definitely staying away from some of the bad areas. I guess my advantage is that I am partnering up with a local contractor that knows the areas and is doing well himself with his rentals.

In addition part of my main reason why I am investing in the W. Side of Cleveland is because I know a few investors that are doing really well buying cash flow duplexes for about 15-20k with about 5k in rehab cost a total of about 20-25k per duplex. They rent them quick and gross about 1200-1300 and net about 700 a month per duplex. That's a 33% COC or ROI on your investment. Compared to California 7-15% not to mention the amount of the investment:-(.

Now, if you ask me that's a great cash flow investment. What am I a missing? Is the area really that bad? Anyone out there investing in the same area that can share some thoughts/opinions would be very much appreciated.

Happy Holidays Everyone!!!

And thanks for everyone here at BP for the wonderful sharing of information.

-Braulio