What are your thoughts on investing in the Cleveland area?

[JC Chavez]

I have been considering a few multi-family and commercial properties in the Cleveland metro area. I initially was excited with the thought of OOS investing in this region due to relatively low cost acquisition, better CAP rate & NOI, and better cash flow. However after further research, I have become hesitant pulling trigger. Some of the concerning factors include relatively high crime(according to crimegrade.org), poor job growth, poor appreciation, moderate to high vacancy, etc.

I am not sure if I am to the point of analysis paralysis and just finding excuses to support a thesis of "this just won't work", or if others have similar concerns with the Cleveland area in terms of future growth, stagnant appreciation, and high risk. I know there are great parts of Cleveland, but I am talking more about the Metro area before you get out to the nice suburbs. I would love to hear from those who have better insight and knowledge of the area than I do. I would also be interested in hearing your success or horror stories with projects/properties you've invested in. And if you have a totally different perspective, I would love to hear that as well. 

[Michael Swan]

I primarily invest and hold approximately 200 front doors in Lake County (Painesville 106 front doors and Mentor 57 front doors) and Akron (24 front doors). They have been very very good to me. All apartment complexes I purchased from 2015-2019. Refinancing a few and taking out tons of cash!! Plus, my 57 Unit complex in Mentor is approaching 5.5 million valuation based on NOI and current sales etc.. same product, same quality. I purchased that 57 unit in August of 2019 for $2,000,000. I have put in about $250,000 to stabalize and reposition so far. I will most likely wait to leave about 25% meat on the bone for a new investor and sell in 2022 some time.

Just retired this last school year from my teaching job and only work on the RE business a few hours a day!!

Feel free to reach out to me for guidance and advice.  I am not a RE agent, commercial Broker etc… just simply an investor in the area you are looking to possibly invest!!

I was featured on BiggerPockets 238 Podcast and told my story how I got started and this is how far I have come now!!  It is sooooooo exciting!! If lowly paid Parochial School teacher can do this, so can you!!

Swanny