A fixer-upper analysis, pos, winter

[Ari Hadar]

https://dealcheck.io/s/-MO_OeK...

It's a suburb of Cleveland next to the border of worst ghetto in Cleveland - East Cleveland. There is also POS and the work in the winter so maybe spring ready for rent. 

Here is one work done on the inside but it still needs windows and outside work. There is a pos in Cleveland heights, I have asked for a copy to see what is involved. 

I don't have a rehab estimate and ARV and i am buffled if to go on with the deal because the school discrict is of East Cleveland that is bad d city. Area code 44112. I am concerned about vacancy, repairs and capex higher than usual because bad tenants and low chance of appreciation especially for Brrrr.

What is your take? 

[David Terbeek]

You are smart to be aware that particular corner of Cleveland Heights with East Cleveland schools trades a a discount to the rest of Cleveland Heights.  Properties sell at a lower rate and rents are lower but these differences tend to offset one another and they are not that extreme.  Consider I just estimated rent at $975-1,000 on a 3 bed SFR, a couple streets over in Cleveland Heights schools the same house would be around $1,100 - around a 10% discount.
The area is also geographically isolated from the rest of East Cleveland.
We have represented over a dozen doors in this area and have not had significant issue with excess repairs or vacancy.
You are already well prepared since you know about the nuance of the area.