What’s actually going on in the Cleveland RE market?

Cleveland, Ohio
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What’s actually going on in the Cleveland RE market?

Tal Tamir
Real Estate Agent · Cleveland, OH · Member since 2019 · 57 posts · 82 votes

What’s actually going on in the Cleveland Real Estate market?

The investment market in Cleveland is still very strong and I forecast it will stay that way. The reason: we have a lot of investors coming from out-of-state or out of the country where their local markets are completely unaffordable and generate little to no cash flow. This isn’t something new, but will escalate even more given the state of other “hot” rental markets that simply don’t make any sense to invest in right now (Austin, Dallas, California, New York, etc.).

In Cleveland, although the price of properties is higher than in recent years, you’re still able to achieve a strong return on your investment, and real estate investors know that.

Interest Rates - why they don’t matter.

Even with interest rates going up, real estate investors will simply adjust their offers on properties accordingly. At the end of the day, it’s a simple math equation to come up with the returns they need on their investment. Sellers will have to adjust their unrealistic selling prices of 2020-2022 to match the rising interest rates. And in reality, the “leveled-out” selling prices of properties will be in line with what the market calls for, whereas in recent years, investors were able to purchase them at that higher price because interest rates were so low.

It’s really a “give-and-take” correction happening: sellers will have to bring down the over-inflated prices of properties and buyers will be offering at a number that makes sense given the interest rates. The savvy investor also recognizes that rates will eventually come back down and when they do, they will be able to refinance into a lower interest rate loan - so it’s really in their favor to buy as many properties as possible while they are being sold for less, even at a higher interest rate.

Going off of that, the responsibility of pricing in the current market falls on the experienced investor-focused real estate agent to set realistic expectations and pricing guidance to their sellers. The two must work hand-in-hand to price accordingly.

All-in-all, the Cleveland market is neither a buyer’s or seller's market, it is for the foreseeable future, an investor’s market.

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Dave PoeppelmeierBusiness Member
Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
3y
Quote from @Jeremy Horton:

Doesn't Cleveland have a declining population? Hasn't it been that way for awhile?

That's my hang-up. I hear a lot about it, I'm sure there's some positives I don't know about, I'm sure there's some success and I'm sure there's some horror stories too. What gets me is the housing is cheap and there's a ton of renters. 

The macro data from some brief research I did awhile back didn't look good. 

In fact, Columbus looked a lot better. If I'm moving to Ohio, why do I move to Cleveland over Columbus? Columbus had an increasing population...there must be a reason more people are moving there...

I mean Cleveland is what, the 2nd poorest city in the nation. The poverty rate is like 30%. 

I'm not trying to be argumentative here, just playing devils advocate. Why should I invest in a city that's losing population and is one of the poorest in the nation?

Jeremy, this is what people that aren't from the Midwest/Great Lakes/"Rust Belt" don't realize: Even though you'll still have "declining population", it doesn't mean that Cleveland is a cesspool. Cleveland has trendy and up and coming neighborhoods, a fantastic restaurant scene, 3 major league sports franchises, and is doing well in general. The Rust Belt will continue to have declining populations because in the heyday of Manufacturing, the Rust Belt was the Mecca of employment. Ask anyone in Detroit about the cultural significance of the Motown Era when Detroit was hopping with the Auto industry. Same thing in Cleveland/Akron/Youngstown: people were flocking to these area for well paying jobs in Steel and Manufacturing. The population is going to continue to decline because people from that era, who stuck around, are literally passing away. Otherwise, if someone is worried about poverty and war zones... don't invest in those neighborhoods! If investors want cash flow, you go to cities like Cleveland, Cincinnati, Toledo, Akron, Dayton (making sure I get all the keywords in for everyone). I understand appreciation is a great way to build wealth, and there are A and B class areas of any Midwest city were, if that's what you're looking for, you can do at a MUCH lower point of entry than the coastal cities. You can invest for appreciation in Columbus, too. Columbus is absolutely the crown jewel of Ohio: Great economy, state government, literally limitless expansion potential as it's surrounded by cornfields, high property values. But, you're not going to cash flow well around there in general, because the secret has been out for a while. That's why investors looking to invest in Ohio (landlord-friendly state for the most part), are looking at the "declining population" areas as places to buy great properties that meet their cash-flow investment criteria. 

Bottom line: Sometimes the macro data doesn't tell the whole story. 
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  • Harrison Sharp
    Real Estate Broker · DFW · Member since 2015 · 350 posts · 270 votes
    3y
    Quote from @Tal Tamir:

    What’s actually going on in the Cleveland Real Estate market?

    The investment market in Cleveland is still very strong and I forecast it will stay that way. The reason: we have a lot of investors coming from out-of-state or out of the country where their local markets are completely unaffordable and generate little to no cash flow. This isn’t something new, but will escalate even more given the state of other “hot” rental markets that simply don’t make any sense to invest in right now (Austin, Dallas, California, New York, etc.).

    In Cleveland, although the price of properties is higher than in recent years, you’re still able to achieve a strong return on your investment, and real estate investors know that.

    Interest Rates - why they don’t matter.

    Even with interest rates going up, real estate investors will simply adjust their offers on properties accordingly. At the end of the day, it’s a simple math equation to come up with the returns they need on their investment. Sellers will have to adjust their unrealistic selling prices of 2020-2022 to match the rising interest rates. And in reality, the “leveled-out” selling prices of properties will be in line with what the market calls for, whereas in recent years, investors were able to purchase them at that higher price because interest rates were so low.

    It’s really a “give-and-take” correction happening: sellers will have to bring down the over-inflated prices of properties and buyers will be offering at a number that makes sense given the interest rates. The savvy investor also recognizes that rates will eventually come back down and when they do, they will be able to refinance into a lower interest rate loan - so it’s really in their favor to buy as many properties as possible while they are being sold for less, even at a higher interest rate.

    Going off of that, the responsibility of pricing in the current market falls on the experienced investor-focused real estate agent to set realistic expectations and pricing guidance to their sellers. The two must work hand-in-hand to price accordingly.

    All-in-all, the Cleveland market is neither a buyer’s or seller's market, it is for the foreseeable future, an investor’s market.


     Dallas doesn’t make any sense? Starting to see lots of good deals here… 

    0Reply
  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    3y
    Quote from @Tal Tamir:

    What’s actually going on in the Cleveland Real Estate market?

    The investment market in Cleveland is still very strong and I forecast it will stay that way. The reason: we have a lot of investors coming from out-of-state or out of the country where their local markets are completely unaffordable and generate little to no cash flow. This isn’t something new, but will escalate even more given the state of other “hot” rental markets that simply don’t make any sense to invest in right now (Austin, Dallas, California, New York, etc.).

    In Cleveland, although the price of properties is higher than in recent years, you’re still able to achieve a strong return on your investment, and real estate investors know that.

    Interest Rates - why they don’t matter.

    Even with interest rates going up, real estate investors will simply adjust their offers on properties accordingly. At the end of the day, it’s a simple math equation to come up with the returns they need on their investment. Sellers will have to adjust their unrealistic selling prices of 2020-2022 to match the rising interest rates. And in reality, the “leveled-out” selling prices of properties will be in line with what the market calls for, whereas in recent years, investors were able to purchase them at that higher price because interest rates were so low.

    It’s really a “give-and-take” correction happening: sellers will have to bring down the over-inflated prices of properties and buyers will be offering at a number that makes sense given the interest rates. The savvy investor also recognizes that rates will eventually come back down and when they do, they will be able to refinance into a lower interest rate loan - so it’s really in their favor to buy as many properties as possible while they are being sold for less, even at a higher interest rate.

    Going off of that, the responsibility of pricing in the current market falls on the experienced investor-focused real estate agent to set realistic expectations and pricing guidance to their sellers. The two must work hand-in-hand to price accordingly.

    All-in-all, the Cleveland market is neither a buyer’s or seller's market, it is for the foreseeable future, an investor’s market.


     I love this Tal!

    [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    3y
    3Reply
  • Adriaan Sierra
    Investor · Cleveland · Member since 2022 · 58 posts · 41 votes
    3y

    There has been some adjustment, but the prices are currently too high on areas we have traditionally invested on. What is surprising is that the houses are still selling on this high prices.

    I have seen turnkey units that go for prices that would imply negative cash flow under a 20% mortgage. I'm assuming that those are people that go for house hacks or do it for speculation.

    I hope the next months validate your thesis 

    2Reply
  • Akshay Wattal
    Investor · CA · Member since 2021 · 28 posts · 8 votes
    3y
    Quote from @Adriaan Sierra:

    There has been some adjustment, but the prices are currently too high on areas we have traditionally invested on. What is surprising is that the houses are still selling on this high prices.

    I have seen turnkey units that go for prices that would imply negative cash flow under a 20% mortgage. I'm assuming that those are people that go for house hacks or do it for speculation.

    I hope the next months validate your thesis 

    @Adriaan Sierra - What were/are some good investment areas/neighborhood? I started exploring Cleveland area and would appreciate any insights. Thank you!

    1Reply
  • Adriaan Sierra
    Investor · Cleveland · Member since 2022 · 58 posts · 41 votes
    3y
    Quote from @Akshay Wattal:
    Quote from @Adriaan Sierra:

    There has been some adjustment, but the prices are currently too high on areas we have traditionally invested on. What is surprising is that the houses are still selling on this high prices.

    I have seen turnkey units that go for prices that would imply negative cash flow under a 20% mortgage. I'm assuming that those are people that go for house hacks or do it for speculation.

    I hope the next months validate your thesis 

    @Adriaan Sierra - What were/are some good investment areas/neighborhood? I started exploring Cleveland area and would appreciate any insights. Thank you!

    The answer is that it all depends on your investment thesis / risk profile. A great place would depend on what you want to get out of it. 

    Most people that invest in Cleveland are all about cashflow and low entry cost. Our group focuses on up-leveling and holding units in A/B neighborhoods, so different than most. 

    So while there are no good areas, there are definitely bad areas to avoid. You don't want to end up owning units in neighborhoods full of blight.  Check the Cleveland grading guide from Mr Wise above, that would be a good starting place.

    Good luck

    1Reply
  • Ryan Arth
    Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
    3y

    Normally higher interest rates would put downward pressure on prices. A lack of inventory has held this downward pressure at bay, especially for owner occupied residential. Sellers either understand that there isn't any inventory, are anchored to their valuation from a year ago, or realize that the current rate level likely won't last a year. Those without a strong reason to sell recognize that they might be moving out of cheap debt into debt that is more expensive on a replacement property. They may determine that this does not warrant making a move, depending on their situation. 

    Good product is still moving quickly, but not everything listed is getting snapped up, which was the case a year ago.

    1Reply
  • Tal Tamir
    OP
    Real Estate Agent · Cleveland, OH · Member since 2019 · 57 posts · 82 votes
    3y
    Quote from @Harrison Sharp:
    Quote from @Tal Tamir:

    What’s actually going on in the Cleveland Real Estate market?

    The investment market in Cleveland is still very strong and I forecast it will stay that way. The reason: we have a lot of investors coming from out-of-state or out of the country where their local markets are completely unaffordable and generate little to no cash flow. This isn’t something new, but will escalate even more given the state of other “hot” rental markets that simply don’t make any sense to invest in right now (Austin, Dallas, California, New York, etc.).

    In Cleveland, although the price of properties is higher than in recent years, you’re still able to achieve a strong return on your investment, and real estate investors know that.

    Interest Rates - why they don’t matter.

    Even with interest rates going up, real estate investors will simply adjust their offers on properties accordingly. At the end of the day, it’s a simple math equation to come up with the returns they need on their investment. Sellers will have to adjust their unrealistic selling prices of 2020-2022 to match the rising interest rates. And in reality, the “leveled-out” selling prices of properties will be in line with what the market calls for, whereas in recent years, investors were able to purchase them at that higher price because interest rates were so low.

    It’s really a “give-and-take” correction happening: sellers will have to bring down the over-inflated prices of properties and buyers will be offering at a number that makes sense given the interest rates. The savvy investor also recognizes that rates will eventually come back down and when they do, they will be able to refinance into a lower interest rate loan - so it’s really in their favor to buy as many properties as possible while they are being sold for less, even at a higher interest rate.

    Going off of that, the responsibility of pricing in the current market falls on the experienced investor-focused real estate agent to set realistic expectations and pricing guidance to their sellers. The two must work hand-in-hand to price accordingly.

    All-in-all, the Cleveland market is neither a buyer’s or seller's market, it is for the foreseeable future, an investor’s market.


     Dallas doesn’t make any sense? Starting to see lots of good deals here… 


     We are getting tons of buyers coming from your neck of the woods. The cash flow here is much stronger from our understanding. What types of returns are you seeing out there?

    0Reply
  • Tal Tamir
    OP
    Real Estate Agent · Cleveland, OH · Member since 2019 · 57 posts · 82 votes
    3y
    Quote from @Joshua Janus:
    Quote from @Tal Tamir:

    What’s actually going on in the Cleveland Real Estate market?

    The investment market in Cleveland is still very strong and I forecast it will stay that way. The reason: we have a lot of investors coming from out-of-state or out of the country where their local markets are completely unaffordable and generate little to no cash flow. This isn’t something new, but will escalate even more given the state of other “hot” rental markets that simply don’t make any sense to invest in right now (Austin, Dallas, California, New York, etc.).

    In Cleveland, although the price of properties is higher than in recent years, you’re still able to achieve a strong return on your investment, and real estate investors know that.

    Interest Rates - why they don’t matter.

    Even with interest rates going up, real estate investors will simply adjust their offers on properties accordingly. At the end of the day, it’s a simple math equation to come up with the returns they need on their investment. Sellers will have to adjust their unrealistic selling prices of 2020-2022 to match the rising interest rates. And in reality, the “leveled-out” selling prices of properties will be in line with what the market calls for, whereas in recent years, investors were able to purchase them at that higher price because interest rates were so low.

    It’s really a “give-and-take” correction happening: sellers will have to bring down the over-inflated prices of properties and buyers will be offering at a number that makes sense given the interest rates. The savvy investor also recognizes that rates will eventually come back down and when they do, they will be able to refinance into a lower interest rate loan - so it’s really in their favor to buy as many properties as possible while they are being sold for less, even at a higher interest rate.

    Going off of that, the responsibility of pricing in the current market falls on the experienced investor-focused real estate agent to set realistic expectations and pricing guidance to their sellers. The two must work hand-in-hand to price accordingly.

    All-in-all, the Cleveland market is neither a buyer’s or seller's market, it is for the foreseeable future, an investor’s market.


     I love this Tal!


     Thank you Josh!! Let's keep putting CLE on the map this year!

    1Reply
  • Jennifer Carter
    Investor · Los Angeles, CA · Member since 2017 · 13 posts · 3 votes
    3y

    @Adriaan Sierra Is there a local investing group, Meer Up or forum? I'm new to the Cleveland market and would be interested in finding folks to discuss the market.

    0Reply
  • Jennifer Carter
    Investor · Los Angeles, CA · Member since 2017 · 13 posts · 3 votes
    3y

    @Adriaan Sierra Is there a local investing group, Meer Up or forum? I'm new to the Cleveland market and would be interested in finding folks to discuss the market.

    0Reply
  • Ryan Arth
    Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
    3y
    Quote from @Jennifer Carter:

    @Adriaan Sierra Is there a local investing group, Meer Up or forum? I'm new to the Cleveland market and would be interested in finding folks to discuss the market.

     @Jennifer Carter There are a couple of local meetups for investors here and a few Facebook groups (some attached to the meetups), but no local forum on BP.

    0Reply
  • Tal Tamir
    OP
    Real Estate Agent · Cleveland, OH · Member since 2019 · 57 posts · 82 votes
    3y
    Quote from @Jennifer Carter:

    @Adriaan Sierra Is there a local investing group, Meer Up or forum? I'm new to the Cleveland market and would be interested in finding folks to discuss the market.

     Hey Jennifer, are you local to Cleveland? If so, there are a few local meetups that happen monthly (some better than others). A few are on meetup and others are more word of mouth. I highly recommend looking into the Lokal real estate monthly meetup. We are actually in talks of relaunching our monthly RE meetup here in CLE as well but will definitely make sure to post it on BP as well as meetup.com etc. Feel free to reach out with any questions!

    0Reply
  • Jennifer Carter
    Investor · Los Angeles, CA · Member since 2017 · 13 posts · 3 votes
    3y

    @Ryan Arth thanks!

    0Reply
  • Jennifer Carter
    Investor · Los Angeles, CA · Member since 2017 · 13 posts · 3 votes
    3y

    @Tal Tamir I Go between LA and Cleveland because I grew up there. I bought some property and now I want to connect with other people to get a better sense of the market and to understand where the best places to buy might be. I'm super active in my other business groups because I also have another small business and just looking at be around like minded people.

    1Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    3y

    Doesn't Cleveland have a declining population? Hasn't it been that way for awhile?

    That's my hang-up. I hear a lot about it, I'm sure there's some positives I don't know about, I'm sure there's some success and I'm sure there's some horror stories too. What gets me is the housing is cheap and there's a ton of renters. 

    The macro data from some brief research I did awhile back didn't look good. 

    In fact, Columbus looked a lot better. If I'm moving to Ohio, why do I move to Cleveland over Columbus? Columbus had an increasing population...there must be a reason more people are moving there...

    I mean Cleveland is what, the 2nd poorest city in the nation. The poverty rate is like 30%. 

    I'm not trying to be argumentative here, just playing devils advocate. Why should I invest in a city that's losing population and is one of the poorest in the nation?

    6Reply
  • Ray Dixon
    Investor · NY · Member since 2019 · 1 post · 1 vote
    3y

    Hello I’m new to the Cleveland re market and looking for a good property management company, any recommendations?

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y

    Here is a different reality:

    - cleveland has a long history of declining population. It has declined over 50% from its population high and is still declining. https://en.wikipedia.org/wiki/Demographics_of_Cleveland.

    - its appreciation since 2000 has been lower than the rate of inflation. This implies that in inflation adjusted dollars, the properties today are cheaper than they cost in the year 2000. Source neighborhoodScout.

    - neighborhoodScout lists the appreciation as 1 out of 10 since the year 2000. This implies its appreciation is in the lowest 10% in the nation over that time frame.

    - Case Shiller shows every large coastal city has produced on average far better returns for residential property for this century.

    - NeighborhoodScout shows the average monthly appreciation on a residential property in San Diego, Orange County, LA, San Jose, and San Francisco for all durations of at least 10 up to 23 years exceeds the current entire average rent of a Cleveland unit.

    This is not to imply that Cleveland is not a good market for Cleveland investors, that Cleveland does not have a low cost of entry (a result of long term horrendous appreciation), or produce a good/great initial cash flow (a by-product of its poor expectation for appreciation and rent growth as well as other risks including declining population).

    Look with a discerning eye the location and profession of the various people who post. Are they unbiased posts? Do the posters have a financial incentive to lure buyers to the Cleveland market?

    Do your research on any market you decide to invest in.  

    8Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    What will happen to coastal properties as ocean levels continue to rise?

    How about the southwest and the lack of water?

    The Midwest and the Great Lakes areas will become more attractive:)

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
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    1Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    3y
    Quote from @Drew Sygit:

    What will happen to coastal properties as ocean levels continue to rise?

    How about the southwest and the lack of water?

    The Midwest and the Great Lakes areas will become more attractive:)


     Rising ocean levels? Really? I can tell you I look at a lot of things when investing in a new market and this is not one of them. What city has this been a problem for thus far?

    0Reply
  • Dave PoeppelmeierBusiness Member
    Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
    3y
    Quote from @Jeremy Horton:

    Doesn't Cleveland have a declining population? Hasn't it been that way for awhile?

    That's my hang-up. I hear a lot about it, I'm sure there's some positives I don't know about, I'm sure there's some success and I'm sure there's some horror stories too. What gets me is the housing is cheap and there's a ton of renters. 

    The macro data from some brief research I did awhile back didn't look good. 

    In fact, Columbus looked a lot better. If I'm moving to Ohio, why do I move to Cleveland over Columbus? Columbus had an increasing population...there must be a reason more people are moving there...

    I mean Cleveland is what, the 2nd poorest city in the nation. The poverty rate is like 30%. 

    I'm not trying to be argumentative here, just playing devils advocate. Why should I invest in a city that's losing population and is one of the poorest in the nation?

    Jeremy, this is what people that aren't from the Midwest/Great Lakes/"Rust Belt" don't realize: Even though you'll still have "declining population", it doesn't mean that Cleveland is a cesspool. Cleveland has trendy and up and coming neighborhoods, a fantastic restaurant scene, 3 major league sports franchises, and is doing well in general. The Rust Belt will continue to have declining populations because in the heyday of Manufacturing, the Rust Belt was the Mecca of employment. Ask anyone in Detroit about the cultural significance of the Motown Era when Detroit was hopping with the Auto industry. Same thing in Cleveland/Akron/Youngstown: people were flocking to these area for well paying jobs in Steel and Manufacturing. The population is going to continue to decline because people from that era, who stuck around, are literally passing away. Otherwise, if someone is worried about poverty and war zones... don't invest in those neighborhoods! If investors want cash flow, you go to cities like Cleveland, Cincinnati, Toledo, Akron, Dayton (making sure I get all the keywords in for everyone). I understand appreciation is a great way to build wealth, and there are A and B class areas of any Midwest city were, if that's what you're looking for, you can do at a MUCH lower point of entry than the coastal cities. You can invest for appreciation in Columbus, too. Columbus is absolutely the crown jewel of Ohio: Great economy, state government, literally limitless expansion potential as it's surrounded by cornfields, high property values. But, you're not going to cash flow well around there in general, because the secret has been out for a while. That's why investors looking to invest in Ohio (landlord-friendly state for the most part), are looking at the "declining population" areas as places to buy great properties that meet their cash-flow investment criteria. 

    Bottom line: Sometimes the macro data doesn't tell the whole story. 
    Podcast Guest on Show #380
    Keller Williams Citywide | Dave Poeppelmeier534 Reviews
    WebsiteView Page
    8Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    @Jeremy Horton it's a big enough issue that it's on the agenda of world meetings and several coastal cities, New Orleans included, are looking into solutions.

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
    WebsiteView Page
    0Reply
  • Uri Gofman
    Member since 2018 · 150 posts · 200 votes
    3y
    Quote from @Dan H.:

    Here is a different reality:

    - cleveland has a long history of declining population. It has declined over 50% from its population high and is still declining. https://en.wikipedia.org/wiki/Demographics_of_Cleveland.

    - its appreciation since 2000 has been lower than the rate of inflation. This implies that in inflation adjusted dollars, the properties today are cheaper than they cost in the year 2000. Source neighborhoodScout.

    - neighborhoodScout lists the appreciation as 1 out of 10 since the year 2000. This implies its appreciation is in the lowest 10% in the nation over that time frame.

    - Case Shiller shows every large coastal city has produced on average far better returns for residential property for this century.

    - NeighborhoodScout shows the average monthly appreciation on a residential property in San Diego, Orange County, LA, San Jose, and San Francisco for all durations of at least 10 up to 23 years exceeds the current entire average rent of a Cleveland unit.

    This is not to imply that Cleveland is not a good market for Cleveland investors, that Cleveland does not have a low cost of entry (a result of long term horrendous appreciation), or produce a good/great initial cash flow (a by-product of its poor expectation for appreciation and rent growth as well as other risks including declining population).

    Look with a discerning eye the location and profession of the various people who post. Are they unbiased posts? Do the posters have a financial incentive to lure buyers to the Cleveland market?

    Do your research on any market you decide to invest in.  


     I have been an active investor in the Cleveland market since 1995.  Virtually every property (1000+) that I bought since 1995 has increased in value significantly.  This does not mean that you can pay full retail and count on appreciation to carry the day in most midwest markets.  The one thing that the analysis you quote misses is that, unlike in the coastal cities, an investor can consistently buy investment properties in this market at signicantly below retail.  Prudent investors that work with knowledgable local professionals in the industry should be able to consistently identify value add properties that will not only cash flow nicely but will be stabilized at a discount to retail pricing. 

    Separately, the City of Cleveland and its adjoining suburbs have a large number of unique neighborhoods with unique dynamics that affect future value.  For example, the appreciation over the past decade in Cleveland neighborhoods like Ohio City, Tremont, and Detroit Shoreway as well suburbs like Lakewood have been tremendous.  The general statistics fail to paint an accurate picture for individual neighborhoods and properties.  

    Every market has unique advantages and challenges.  People make and lose money in the same market every day.  Being a prudent investor who has performed an adequate amount of  market research (which in my opinion should include spending a little time on the ground and meeting numerous local professionals who hopefully have different viewpoints before your first purchase) is essential for success.  

    7Reply
  • Tal Tamir
    OP
    Real Estate Agent · Cleveland, OH · Member since 2019 · 57 posts · 82 votes
    3y
    Quote from @Jennifer Carter:

    @Tal Tamir I Go between LA and Cleveland because I grew up there. I bought some property and now I want to connect with other people to get a better sense of the market and to understand where the best places to buy might be. I'm super active in my other business groups because I also have another small business and just looking at be around like minded people.

     Awesome! My good friend @Sammy Lyon  is also in LA and has invested here in Cleveland as well. I am happy to chat about Cleveland and some areas as we know the market super well being investors ourselves and personally being born and raised in Cleveland!

    1Reply
  • Tal Tamir
    OP
    Real Estate Agent · Cleveland, OH · Member since 2019 · 57 posts · 82 votes
    3y
    Quote from @Ray Dixon:

    Hello I’m new to the Cleveland re market and looking for a good property management company, any recommendations?


     Hey Ray welcome to CLE! Reach out and I will send you our priority vetted vendor list which includes property managers, lenders, inspectors and insurance brokers!

    2Reply
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