Even if the house was free, where NOT have a rental??

Question

Okay maybe the question is a a bit extreme, but in the Akron, Canton, Wadsworth areas - is there a neighborhood, street, section you wouldnt even consider looking at??

Appreciate the input!!

Michaela G. · Answer

I started buying in Pittsburgh (in Atlanta) after the last crash. Most investors wouldn't set their foot into the neighborhood. It has a stigma. Whether deserved or not, it kept people away.

Now I have 14 properties in the neighborhood, mostly duplexes, and suddenly the neighborhood is turning. 'I buy houses' signs at every post, fixer-uppers are being snatched up as soon as they come on the market.

I tried to buy houses close together and have several assemblages. Created an artist community on one. They all brought each other up.

I've also done it before, where I bought 1 on a boarded up house and an investor friend of mine then bought one on one end of the street and another investor on the other end and before you know it the whole street had turned around.

Charles F. Billington · Answer

I invest in Akron, and, for what it's worth, I'm Akron-born, raised, and educated. North Hill, Ellet, and West Akron are all great, relatively-safe places where you can hit the 1-2% rule, even just buying turnkey off the MLS (if you're diligent). There are some amazing suburbs as well--Cuyahoga Falls, Green, Barberton, etc.--but you'll pay a bit more there. It depends on whether you want larger cash flow up front or more equity in the long run. Appreciation in the rental markets in Akron is probably 1-3% annually. I'm not in it for straight appreciation; it's the icing on the cake. And some banks in Akron will end 80/20 LTV or even 85/15 on investment properties assuming you have the credit.

I haven't looked into student rentals, largely because it appears that market is supersaturated with some big players. I know several student housing investors, though most are out of the market now, but they assume the worst and mitigate by signing the parents to the leases, charging large deposits, and working the turn losses into their models. I've often thought about Kent State, though, as enrollment appears similar but I don't hear as much about SFR/multi student housing investment there.

@Aaron Hale , I'd also be really interested in a block redevelopment. I've heard rumblings about that, and of course there's been pop-up revitalization projects like Better Block, but nothing that's an actual redevelopment project. I have to believe there are whole blocks with 50% vacancy/rental and folks willing to move for the right price. You could imagine that around the campus or between Cuyahoga Falls and Akron, similar to what they did under the Y bridge, or near the Goodyear East End campus.

Aaron Hale · Answer

As this thread gets even older, some points above are no less informative or interesting. I’m originally from Bath and have family in the Highland Park/Fairlawn area. I have considered university housing and am about to close on my first investment property in Green. If anyone has a lead on a good contractor, by the way, I’d be grateful.

I’m mostly intrigued by the joint venture on a block renovation and if there were some area in or around Akron where that might work. Any thoughts? Akron is my hometown and I’d love to breathe a little life into a small corner of it that needs it.

Miguel Nava · Answer

@James Galla Thank you very much for taking the time to reply. It is always very important to get pointers/advice from someone familiar with area.

James Galla · Answer

@Miguel Nava , I live in Akron and am attending law school there. It looks like from your profile that you are an out of state investor? Akron's rates are some of the best in the country, plus it is close to Cleveland, making for an acceptable commute. There are some areas in Akron that are great with a moderate cost, but when you get closer to the city/university, you start getting into questionable territory. Personally, I wouldn't invest near the city unless I lived there or had a great understanding of which streets are acceptable. Keep in mind that some streets near campus are a part of a security network that has roving patrols. Despite having extra security, it is still a rough area with higher crime. Also, near the city, there are many schools, but they are poorly rated.

In terms of appreciation, I do not see the case just yet. The properties are old, and there doesn't appear to be a designated student housing area when you get into residential properties near the city/university. I'll say that it appears that investors are purchasing and improving properties in the area, but there are many non-students/non-investors that own properties. The properties not owned by investors are low-grade. I frequently walk around the streets (I have a dog), and I had an opportunity to view several homes/apartments when searching for a place to live. Having spoken to many investors, if I were to invest, I would look towards college student rentals. I would think the college students are a less risky investment than the normal Akron resident.

If you choose to invest, prepare for the slew of stray cats and crime. I also suggest a security system. I've of many burglaries as well, particularly against college students. My last note is that regardless of all of the problems with Akron, I think it would make a solid investment because the cost of the properties is low. I have a list of places that I intend to invest in, and Akron is one of them.

Miguel Nava · Answer

Hello  everybody,

I know this kind of an old thread. It crossed my mind to check Akron out for buy and hold (rentals). I think appreciation will be non-existent, but I noticed price/rent ratio seems to be really good, which could bring nice cash flow, of course, if the property can be rented.

What are your thoughts?

Michaela G. · Answer

Ronda R. , I live in the neighborhood, but not within the creative community.

Michaela G. · Answer

Ronda R. ,

Mine is a block with 6 duplexes, that are around a private cul-de-sac. Everything's fenced and gated now and we only accept people that are creative in some way. Does not have to be full-time, but has to be more than a little hobby.

All outside area is common area and someone always starts a fire in the fire pit and then others come out. Turned out really well.

Steven R. · Answer

There are several area around Akron that are good.. Stow, Tallmadge -Kent has the university... Looked at a student rental once there. If the market values arent there I wouldnt buy in those areas , no matter how cheap you get them for!

Even if the house was free, where NOT have a rental??

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