Help me narrow my strategy in Cleveland Ohio please... :)

[Nicole S.]

Hi BP,

Thank you all for this wonderful forum resource! Reading your posts have become a bit of an addiction for me. I can't wait until I am on the other side, helping other investors with their questions. For now, I'd like to ask your advice...

I'm a new investor looking to invest in the Cleveland area. My goals are to buy properties in safe neighborhoods with solid tenants. Being remote, I'm not looking to do major rehab for my first deal because I'm still building my network "on the ground" and it feels a little overwhelming, but I am willing to do some cosmetic items to attract the right renters. Cashflow is important, as well as potential for reasonable appreciation over time. My goal is to use these investments as a learning tool and a way to grow wealth for further investment. I'd love to hear your thoughts on...

1) What areas around Cleveland do you recommend and why?

2) Pro/cons of single family vs duplex vs quadplex in these areas?

3) Should I skip this step, and go right to larger multi-family units, partnering with other investors?

4) pointers to agents/brokers that focus in investment buyers in the area that may have a good track record and solid contacts?

I'm planning a trip in October and want to target areas and narrow my focus/strategy. Thank you!

Nicole

[Jared Lichtin]

@Nicole S. @Antoine Martel@Steven Aviram @Federico Gutierrez @Nicole Heasley Beitenman  @Katie HaneyTo whoever mentioned stay out of the suburbs... while I completely respect your opinion, I believe you are more referring to *mostly* Cleveland Heights & Shaker Heights.. There are plenty of suburbs in Cleveland with great commercial and retail establishments, awesome restaurants and amazing school districts people love to rent in. Stable rents, appreciating retail prices, etc.

Think of like the east side suburbs, B level like Lyndhurst, Mayfield, South Euclid, Twinsburg, or A level like Hudson, Solon, Gates Mills, Beachwood, Pepper Pike, etc. Solid inventory of older homes built in the 50s-70s, older folks dying with ownership who have done virtually nothing cosmetically but still took care of the home, etc. Plenty of opportunity and not much to hear from the city upon purchase.

The POS ensures that neighbors actually take care of their houses, which doesn't happen in areas where the city has no freaking control over anything. Yea, it sucks, but I just purchased a beautiful foreclosure in Cleveland Heights for $87k that will rent for $1500. The POS was $1,100. So, I'll have to escrow that money for a few weeks. Big deal. Sure, these city inspections can suck.. but you SEE THE PRICE FIRST! It's not like you can get in anything and 5 weeks after closing realize you have to deposit money into escrow. Since I buy foreclosures it's way harder for me because sometimes I can't see the POS until a few days before closing. Argh, this is really just a rant more than anything, but doing your own due diligence on the property/street/neighbors/tenants/school district is way more important than escrowing a few thousand dollars that you'll get back anyways. 

What do you think, @Tom Ott? You guys at Smartland are experts and deal with the POS way more than I do!