First Multi-Family Investment: Seeking Advice on Cleveland Market & Financing Strateg

[Hector Espinosa]

Hi BiggerPockets Community,

I'm a new investor based in San Diego, CA/, exploring the Cleveland, Ohio and Columbus, Ohio market for my first multi-family property investment and would love to get some advice from experienced investors.  I'm mainly looking for duplex, triplex or quadplex.  

Market:

I’m looking for although not sure what would be the best neighborhoods:

• Properties priced around $150,000 or less.
• Areas with low vacancy and crime rates.
• Neighborhoods where rent prices are stable or increasing.
• I'm mainly looking for properties which are tenant occupied. 

Key Questions:

1. Neighborhood Insights: What has been your experience with these areas? Any insights on market trends, potential pitfalls, or things I should look out for? What are the better neighborhoods in Cleveland/Columbus that I should consider for multi-family units?
2. Financing: I’m planning to use conventional financing for this purchase. What’s the best way to approach financing for a first-time investor? Any recommendations on lenders who are experienced with multi-family properties in Cleveland?
3. Risk Mitigation: What strategies do you use to mitigate risks when investing in older properties in Cleveland, especially in terms of unexpected repairs or property management?
4. Rent-to-Price (RTP) Ratio: I’ve been looking for properties with an RTP ratio of 0.60 or higher. For those who’ve invested in Cleveland, is this a realistic target for multi-family units in the neighborhoods I’m looking at?

Investment Goals:

I’m interested in create steady and consistent cash flow with a long-term appreciation with this investment. I would prefer prefer neighborhoods that are showing signs of population growth and economic development but open to recommendations.

Would love to hear from anyone with experience in the Cleveland market or similar! Thanks in advance for any insights.

Thanks in advance,
Hector

[Marc Rice]

Quote from @Hector Espinosa:

Hi BiggerPockets Community,

I'm a new investor based in San Diego, CA/, exploring the Cleveland, Ohio and Columbus, Ohio market for my first multi-family property investment and would love to get some advice from experienced investors.  I'm mainly looking for duplex, triplex or quadplex.  

Market:

I’m looking for although not sure what would be the best neighborhoods:

• Properties priced around $150,000 or less.
• Areas with low vacancy and crime rates.
• Neighborhoods where rent prices are stable or increasing.
• I'm mainly looking for properties which are tenant occupied. 

Key Questions:

1. Neighborhood Insights: What has been your experience with these areas? Any insights on market trends, potential pitfalls, or things I should look out for? What are the better neighborhoods in Cleveland/Columbus that I should consider for multi-family units?
2. Financing: I’m planning to use conventional financing for this purchase. What’s the best way to approach financing for a first-time investor? Any recommendations on lenders who are experienced with multi-family properties in Cleveland?
3. Risk Mitigation: What strategies do you use to mitigate risks when investing in older properties in Cleveland, especially in terms of unexpected repairs or property management?
4. Rent-to-Price (RTP) Ratio: I’ve been looking for properties with an RTP ratio of 0.60 or higher. For those who’ve invested in Cleveland, is this a realistic target for multi-family units in the neighborhoods I’m looking at?

Investment Goals:

I’m interested in create steady and consistent cash flow with a long-term appreciation with this investment. I would prefer prefer neighborhoods that are showing signs of population growth and economic development but open to recommendations.

Would love to hear from anyone with experience in the Cleveland market or similar! Thanks in advance for any insights.

Thanks in advance,
Hector

 You should focus on Cleveland C class rentals then - you can't make $150k work in Columbus. Happy to share you over a map of areas that would work for you?