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 Orlando]

Yes was referring to my partner and I and we JV / syndicate so there are other partners/investors depending on the deal. I do not own all 200 doors myself.

[Stipe Ba]

How do you like the mentor area to rent ?

@Michael Swan

[Michael Swan]

Hi @Stipe Ba

We really like that area!! Anything east of Willowick to Painesville we like.  I have a 57 unit apartment complex in Mentor.  In Painesville I have 7 apartment complexes for about 110 units and I have a 24 unit apartment complex in Akron.  We recently sold a 12 unit apartment complex in Euclid a few months ago.

Feel free to message me and we can talk more about these areas.

I love this stuff!! 

Swanny

[Clay Boykin]

@JC Chavez It depends on the market and type of property of course. I would suggest Columbus rather than Cleveland. Columbus is growing rapidly, especially in the past 6 months. The types of properties are vast but the 1% rule stands out in most. I would suggest doing quick flips at first then moving on to long term BRRRR's or Airbnb's. No matter what you invest in right now, your margin will be there.

You are correct about Cleveland's population factors. High crime, poor growth, DTI ratio's are dropping, etc. Every market has it's issues, it just depends on what issues you want!

Feel free to reach out to me about the Ohio market. Either way, Happy Investing!

[Marc Rice]

Cleveland can be a great investment market if you have a great property manager, agent, and contractor. Otherwise Columbus is a better growing hybrid market of cash flow and appreciation.

[Lloyd Macy]

@JC Chavez I appreciate you posting this. I am also just starting on my journey and I am looking at the Cincinnati, Columbus, Akron and Cleveland markets. I have built a spreadsheet based off the Multifamily Millionaire book and so far I have only found 5 properties that beat a return of the stock market. All 5 are in Cleveland. I am also struggling with analysis paralysis and i enjoyed reading this thread. I would like to compare notes with anyone if they are open to it!

[Steven Foster Wilson]

Originally posted by @Lloyd Macy:

@JC Chavez I appreciate you posting this. I am also just starting on my journey and I am looking at the Cincinnati, Columbus, Akron and Cleveland markets. I have built a spreadsheet based off the Multifamily Millionaire book and so far I have only found 5 properties that beat a return of the stock market. All 5 are in Cleveland. I am also struggling with analysis paralysis and i enjoyed reading this thread. I would like to compare notes with anyone if they are open to it!

If you have only found 5 properties that bat the stock market return, Id suggests you get an agent to help you find off-market deals. I've picked up an additional 10 units just this year in Columbus that beat 20% COC

[James Wise]

Originally posted by @Lloyd Macy:

@JC Chavez I appreciate you posting this. I am also just starting on my journey and I am looking at the Cincinnati, Columbus, Akron and Cleveland markets. I have built a spreadsheet based off the Multifamily Millionaire book and so far I have only found 5 properties that beat a return of the stock market. All 5 are in Cleveland. I am also struggling with analysis paralysis and i enjoyed reading this thread. I would like to compare notes with anyone if they are open to it!

You can't base a potential ROI of a rental purely off of a spreadsheet. Price to rent ratios will be like comparing apples to oranges as you navigate through different types of asset risk levels and things of that nature. You need to dig deeper to get an understanding of what it is you're actually investing in.