What area of Lakewood would you get your next duplex?

Question

Hello All!

CLIFFNOTES: Looking for areas you see higher rental return than expected/appreciation, a property with little to no work needed to get rented, and rental price projections in the Birdtown/Cudell neighborhoods or any other areas that get brought up. Max purchase price, $175k.

I have been soaking up a lot around here and FINALLY ready to make an offer once I find the right duplex.

The best help has been my co-worker (currently buying his second duplex in the area) and this article, The Ultimate Guide to Grading Cleveland Neighborhoods. It is a MUST read to get a good foundation, but this is over two years old now. I imagine the map and area opinions looking different today and want to get input where you think it has changed.

I have done a lot of research and understand the broad concept of Northern and Western areas being the easiest and best to rent, but I am not looking to put an offer in over $175k and inventory seems limited right now.

My agent is showing me a few places today mostly in the Birdtown/Cudell area since I would rather get something a little cheaper that needs next to nothing work, compared to something in the same price range needing rehab. Sweat equity seems daunting being as I am a pen-pushing millennial with no handy skills as well as spending all too much time at work.

what are your thoughts? Should I stay away, do you have better areas to look at for my price range, any untapped pockets of multi-unit gold?

TIA!

P.S. Always happy to reciprocate with any lending advise needed.

Gino Tomba · Answer

Luckily my agent gave me full access to the MLS so I am not paying for it right now. I have been running the rental calc over and over again on different properties and I am not getting the return that every expert talks about.

My next game plan is looking for SFR that may have an in-law suite or full basement to even Air BNB

Victor Vella · Answer

I’ll add it took a year to buy my first property lol so maybe the argument can be made both ways

Victor Vella · Answer

I did the same thing when I was getting my feet wet and doing a side hustle ( making an assumption since his profile makes reference to working for a lender)

I think it’s smart to try free alternative sources besides MLS before going straight to paid sources.

Sometimes being lean and hungry forces creativity that creates big things.

If nothing else you try it doesn’t work after 60-90 days then you say what’s next.

Additionally I would suggest being open to property types and focus on a deal and a city vs a specific property type and a city and a deal.

Federico Gutierrez · Answer

Sounds like you want to buy under market value yet don't want to invest any money into trying to find what you're seeking? Am I the only one that's see the issue here.

Victor Vella · Answer

I agree on the mls. I’m among the fastest and most competitive in the west and I only buy 1 every 45 days or so.

If you figure out direct mail and have an extra deal give me a ring 😁 or if you every want another eye on a property let me know!

Gino Tomba · Answer

That's awesome! I think a  3 unit is ideal for a newbie to actually cash flow day 1 over a duplex, but not as daunting as managing a 4 unit off the bat.

I am lucky to have time on my side to be patient, but I'm getting anxious wanting to get my first deal done so I am closer to the second deal!

I am just about toast finding a deal on the MLS, so I think my next plan is direct mail. I have also joined some Lakewood 'For Sale' Facebook groups in hopes that a little ole lady may post a steal without knowing how to post it anywhere else for others to see lol. Long shot, but probably equal to the MLS at this point.

Any advice on Direct Mail? I do not want to put a lot of money into it if I hear that investors have already blasted the neighborhood with flyers.

Gino Tomba · Answer

I am struggling finding those good pockets that are not a war zone.

Victor Vella · Answer

Hi Gino!

I do a lot in Lakewood, our team just put a giant 3 unit under contract in central Lakewood.

We do a mix of residential, rentals, flips, SF and multi families. Lakewood has great demand but limited supply and extreme buy side competition.

Duplexes and multi-families in Lakewood have skyrocketed in cost, there’s opportunity but you have to be patient.

Federico Gutierrez · Answer

There are areas in Cleveland in that could yield the same rents but not cost you as much. Lakewood has higher property taxes than Cleveland. A good realtor can offer up alternatives.

Gino Tomba · Answer

I agree with everything you said. I drove around on a Friday night, but it was raining so I didn't see much action. It is right across the street from a school so with my limited knowledge on what a renter may look for, that may help in getting what I want for it.

I don't see myself wanting to top out on my budget either unless I can get a higher return on rent.