All Forum Posts by: Bailey Coleman

Cleveland, Ohio is a great market to focus on for cash flow and specific pockets have gone up 2x and upwards of 4x in the last 5-10 years even!

Examples:

44109 (median home price went from roughly 50k to 125k in 8 years)

https://www.zillow.com/home-values/77009/cleveland-oh-44109/

44102 (median home price went from roughly 30k to 120k in 8 years)

https://www.zillow.com/home-values/77002/cleveland-oh-44102/

44106 (median home price went from roughly 100k to 200k in 8 years)

https://www.zillow.com/home-values/77006/cleveland-oh-44106/

It has the highest rents on average in all of Ohio for major cities and the median income is not even in the top 3. That creates a really nice price / rent ratio which is favorable for investors looking for cash flow. The median home price is also very low nationwide which creates a low barrier to entry. You can get solid cash-flowing single families in the 90-120k price range and duplexes in the 130-180k price range. There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues. In 2022 the rents increased 12.1% year over year which was the 3rd highest in the entire country per https://www.axios.com/local/cleveland/2023/02/14/cleveland-rent-prices.

Here are pockets I focus on for cash flow:

West side - West boulevard, Cudell, Clark-Fulton, Jefferson, Bellaire-Puritas, Old Brooklyn

East side - Fairfax, Buckeye-Shaker (the north side), Waterloo Arts District, Garfield Heights, Maple Heights, Newburgh Heights, Lee-Miles (the north side), Bedford

Here are the areas that I focus on for appreciation:

West side - Lakewood, Edgewater, Old Brooklyn, Ohio City, Tremont (above 490)

East side - Buckeye-Shaker (the north side), Waterloo Arts District, Fairfax

*I have a graded neighborhood map of these areas as well if you would like to check it out.

Hey BP! 

I've been doing a good deal of networking in my area but I want to meet more people that have real estate in their vision and goals! 

If you're in Cleveland, and you're a real estate investor, please connect. I'd love to chat and hear about what strategies you're pursuing. 

I'm actively preparing to purchase a property to house hack in early-mid 2024. Currently saving up sufficient funds for my down payment, closing costs, and my personal reserve requirement. 

Looking forward to chatting! 

 Is this the same as a "rooming house"?

 Where in Cleveland? I generally recommend against renting by room. It tends to draw very troublesome tenants. most of em end up as crack houses with a lot of maintenance problems and expensive turns. 

Padsplit hasn't launched in Cleveland yet, so you won't be able to use their platform. You could possibly explore a similar platform, I'm not sure. 

To be honest, I don't think Padsplit would be as successful in Cleveland. It's huge in Atlanta because it's hard to find apartments in Atlanta for under $1200/month, so getting a Padsplit at $700/month is pretty attractive. But in Cleveland there are lots of places where you can get a studio for $600/month or less. (I know because I own one) So Padsplit would have to be much cheaper than that and I'm not sure it would be worth it at that point. 

Hope that helps. Happy to talk further. 

 I would look into the Columbus market. It's known for it's strong appreciation factor, low taxes, and also because it is a land-lord friendly state.

Have you invested in the Cleveland or Columbus market before?

I am closing a property in Cleveland Ohio, Live in Maryland. I had opened an LLC & business bank account for in instate deal, I didn't go through it but now found a better option in Cleveland.

What is my next best step to collect rent payments, payments to property mgmt, track expenses, and pay taxes correctly? Do I use the Maryland LLC and bank account or open up an Ohio LLC, tie it to another business account, and run it that way? Or is there another way ?