Cleveland Investors, should I buy in Clark-Fulton?

[Joshua Hollandsworth]

Is the Clark-Fulton neighborhood a bad area to invest in? I personally would not want to drive around this neighborhood knocking on doors for rent. I also wouldn't want to drive through Clark-Fulton at night to replace a broken light fixture. Clark-Fulton seems to be a very profitable market. I know that I could hire a PM so that I never have to deal with tenants personally. I would like honest answers. Part of me says "Josh this is a very dangerous neighborhood, and you know it." But, the other part of me says "Josh, why do you care if it's a bad neighborhood? Hire a PM company so you don't have to deal with residents personally. It's no different than investing out-of-state." I am willing to put my money into these cash flowing duplexes, all day long. I just don't want to continuously travel here. I really do want to get over my fear of investing in bad areas. I have a feeling I am missing out on a lot of cash flow. Thanks in advance!

[Steven Gesis]

Originally posted by @Joshua Hollandsworth:

Is the Clark-Fulton neighborhood a bad area to invest in? I personally would not want to drive around this neighborhood knocking on doors for rent. I also wouldn't want to drive through Clark-Fulton at night to replace a broken light fixture. Clark-Fulton seems to be a very profitable market. I know that I could hire a PM so that I never have to deal with tenants personally. I would like honest answers. Part of me says "Josh this is a very dangerous neighborhood, and you know it." But, the other part of me says "Josh, why do you care if it's a bad neighborhood? Hire a PM company so you don't have to deal with residents personally. It's no different than investing out-of-state." I am willing to put my money into these cash flowing duplexes, all day long. I just don't want to continuously travel here. I really do want to get over my fear of investing in bad areas. I have a feeling I am missing out on a lot of cash flow. Thanks in advance!

 I think you answered your own question - you should expect you will travel a lot to this area  - but maybe ????

[Joshua Hollandsworth]

@Steven Gesis I appreciate the feedback. I sent you a message. My question is, would you invest in this neighborhood? Thanks again.

[James Wise]

I think a higher class neighborhood is better for a new investor. You really need a training wheels type property to get moving & learn the business. Clark Fulton is not were you go to learn.

That's not to say you can't make money in that neighborhood though. It's just gonna be peppered in with more stretches of loss. 

When you are making money it's gonna be good money, but your gonna hit be stretches of loss, Damage, Evictions etc... Be prepared to weather that storm when it comes. If you have a larger portfolio & some infrastructure behind you it can be nice because you can off set your losses with all of your gains. Owning only 1 & being realitivly cash poor is risky.

As for door knocking as a way to collect rent. Dont do it. Good way to get yourself hurt or robbed.

[Ian Kurela]

I agree. Clark-Fulton has some great cash flow opportunities, but as you said, is defiantly risky for more reasons than one. I agree with James. It should not be one of your first investments. Having said that, it could be a useful tool in your toolbox once the portfolio grows large enough. Best of luck!

[Steven Gesis]

Originally posted by @Joshua Hollandsworth:

@Steven Gesis I appreciate the feedback. I sent you a message. My question is, would you invest in this neighborhood? Thanks again.

No, this is not my asset class - I prefer a higher quality product, in turn I can capture a higher quality resident/tenant - mitigate turnover and increase ROI :)

[Federico Gutierrez]

It's a high risk area, I would expect a lot of turn over/vacancies before you come across a qualified tenant. Better area's out there to invest and sleep easier at night

[Tim Shafer]

I had the same question and these replies have been helpful. However, it's three years later and I am wondering if the response is the same. I see a number of economic development and community vitality initiatives initiated circa 2020, including a community master plan, the development of the MetroHealth complex and associated green space, the Community Housing Plan 2030, 25Connects, Mayor Frank Jackson's Neighborhood Transformation Initiative, and others. All of these have set their sites on Clark-Fulton as an area in need of social and economic uplift and some have dedicated funding to support these efforts. Any thoughts on the future of this neighborhood that is situated adjacent to Tremont and Ohio City, which have experienced a boom (read: gentrification)? There seems to be a strong desire to embrace and maintain the ethnic/cultural character of this neighborhood and precluding predicted gentrification in the area with the development of the MetroHealth complex. 

[Christine Virata]

HI Joshua.  I just purchased a newly renovated home here in Clark Fulton about 5 min to the new Metro Health Campus.  So far so good.  I have it for lease now and I will have a property management company look over it for me.  I am an out of state investor.