Deal Analysis, Tenant Placement, and the Cleveland Rental Market

[Tracy Meyers]

Hi BP Community,

I'm looking at a deal in Cleveland, Ohio and am unfamiliar with the area and its rental market. I'm wondering if there's anyone with experience investing there that can shed some light on a few questions for me.

My biggest concerns are with how long it would take to place a tenant and tenant turnover rates.

The deal I'm looking at is a duplex and each unit should rent for $575. Including remodel the initial investment will cost around $40,000. My focus is on the cash flow potential of the property.

1) Is this a good deal for the area? Does it sound too good to be true?

2) Is one month a reasonable time for tenant placement here?

3) Are there any issues with investing in Cleveland itself that anyone has come across?

Thanks in advance for taking the time to address my questions and concerns.

[John Koster]

1.  The Cleveland area is quite diverse and can vary block to block in certain areas.

2.  One month is reasonable with quality management and a quality property.

3. Issues  depend on the quality of tenant, neighborhood and management.  You can get great results in most areas, but also bad results.

Any two bedroom in Cleveland under $600 is generally not in a desirable neighborhood.  C neighborhoods are generally commanding $700 and above for 2 bedroom duplexes.

Hope that helps!