Cleveland market and Experience

[Jake Johnson]

Hey all - I have been eyeing Cleveland. I am invested in two other geographic areas. Anyone have some good experience with boots on the ground there, who can share market insights, best areas for long term single family holds (I am focusing on cashflow). I am seeing very mixed takes on the market there. I am happy to share knowledge and experience or something similar in return.

Thank you

Jake Johnson

[Andrew Duna]

Hey Jake -- congrats on already having invested in two other areas!

Cleveland is a little bit of a mixed bag. The reason it's currently known for its cashflow is because the properties are cheaper because they are in slightly less desirable C-class areas. In general you can definitely secure a great tenant but there's always the chance you get a bad egg. Just like any area- it really comes down to how well you vet your tenants. 

With that being said - the best areas to consider for a single family home for cash flow is going to be on the West Side and if you look at google maps these neighborhoods will appear if you zoom in/out -- Detroit Shoreway, West Eighties, Cudell, West Boulevard, Jefferson, Bellaire-Puritas, Brooklyn and Old Brooklyn. These are all C class areas and typically cashflow quite well 

Old Brooklyn is currently the most desirable out of those and has the best chance at future appreciation. At a close second... the West Eighties area is set to appreciate with being sandwiched in between the gentrified Tremont and desirable Edgewater neighborhoods.

If you're really really going for cashflow you might consider buying a 3+ bed SFR in the eastern end of the Clark Fulton Area (currently D class) and going the Section 8 route... because the Metrohealth hospital in the Eastern end of it has pledged $1 Billion dollars to revitalizing the area and there are many housing projects going up in the area. So it's one of the rare times a section 8 property has a great chance for appreciation in CLE.

There is also the "Heights Belt" - Garfield + Maple + Warrensville Heights that essentially always have a decent single family property to pick up. 

You might also consider the Lorain market which is considered to be a part of Cleveland's western orbit. You can typically always find cheaper properties with less property taxes -- just remember that if you intend to purchase more properties in Cleveland -- that your property manager may not service both areas since it is half an hour away. 

I hope this helps and as investment focused agent here in CLE --  I would love to help you find a solid property to consider!