Newbie from Cleveland, Ohio

[Anne Wimmer]

Hi BP people! I've been following the podcasts for a few months and am fairly new to this website. Looking to purchase our first MF or SFH soon, but unsure about one big thing: Is it smarter to invest in an area that has a high rental population (and high inventory/competition), or an area that has fewer rentals bc the demand isn't as high? We have both types of areas in my area. Thanks in advance for any thoughts on this.

AW

[James Wise]

Originally posted by @Anne Wimmer:

@jameswise hello!  I'm comparing places like Lakewood, West Park and Parma to North Ridgeville, Columbia Station, North Olmsted, etc.

 Lakewood & West Park are probably where you'll get the biggest bang for your buck. Tons of rental demand over there with decent price points. Columbia Station, North Ridgeville & North Olmsted all have pricing that is almost exclusively driven by the owner occupied market so you'll have a hell of a time picking something up that will be cash flow positive. Parma I own a whole bunch of real estate in Parma. Prices are up again on the single family houses, making it tough to cashflow on the bungalows. Still pretty decent amount of duplexes though. Further north you go the more affordable.