Investing in Stockyards Cleveland

[Martin Moran]

Hi there!

I was wondering if anyone is currently investing in the stockyards area. I see duplexes going for mid $60K but I don’t seem to find any comps. On paper, they seem to cash flow and the neighborhood varies from street to street. Any thoughts on value add opportunities? How is the tenant pool in your experience? Is it going to be possible to do a cash out refinance if the units are remodeled? Not like an A property, but nice and decent. A

Please share your thoughts!

Thank you

Martin

[Bob Collett]

@Martin Moran  You will start seeing this post of mine showing up often.  "The city of Cleveland has proposed legislation to require ALL investment property owners to certify that their rental property is "lead-safe". The legislation has not yet passed, but a councilman recently told me at a meeting on the subject that passing the legislation is a forgone conclusion. It is not yet determined how owners of rental properties with have to certify, but it will 1.) for sure require a licensed lead specialist to proactively certify that the property is lead-safe and 2.) the burden of lead-safe compliance will fall largely on the owner. Bob Collett, Property Manager"

This legislation is expected to pass this year.  Required compliance will be phased in over 2 years.  The rental registration fee in Cleveland will increase from $35 to $70 per unit.

You do not want to be the last investor to purchase the property, just before the legislation goes into effect.  If you are going to buy in Cleveland... I strongly urge you to get it tested for lead by a qualified lead specialist.