Quote from @Amber Moelter:
Hi all, I'm new to BP and REI. My spouse and I moved to Ohio last year and we're currently renting in Akron, with the goal to househack by the end of the lease, or sooner if we find the right property.
We've been going to duplex open houses in Cleveland & Akron and a few showings with our agent who has more experience in the Akron area, to learn about neighborhoods, price, quality, etc. Setting expectations.
We're leaning toward Cleveland, gravitating to the Cleveland & Shaker Heights B neighborhoods, both for ourselves and for family/professional leaning tenants. I'm curious why those areas aren't recommended in the forum. Is it the high property taxes? Is it the POS? We've seen some lengthy POS with $15K+ escrows and we've seen others that will come with completed POS. We're incorporating the prop taxes & POS costs into our overall calculations.
Buy box:
Location: Approx. 30 min drive to Boston Heights, for work
Neighborhoods: Decent walkability score - not far from shops/restaurants/trendy neighborhoods
Ideal tenants: Close to hospitals/universities/schools for professionals/students/families
Budget: $175-250K - Buying w/conventional loan, 5% down/ approx 20K reno.
Property type: MFH 2-4 units - preferably side-by-side, with a yard we can fence for our dog
Units: 3+/1+ - better if 1.5/2 bath per unit
Timeline: Plan to live there for 2 years, but possibly only 1 year if we find another investment opportunity
Goal: Focus on appreciation - would like to see cash flow in year 2-3 (the year we move out), including overhead (Vacancies, Maintenance, Utilities) and budgeting in PM if eventually we don't manage ourselves
Value add: Opportunity for some forced appreciation, but not a full reno - cosmetic upgrades and updating kitchens/baths while we live in one unit. If vacant, upgrade the other unit before leasing. We have $20K for immediate reno, and would continue in our unit over time.
Parking: 2+ car garage (ideally 1 spot per unit)
Personal taste: We gravitate to historical details (wood floor, built-ins, and curb appeal) and don't like flipped vibe, with LVP and grey paint. We'd paint, regardless, and prefer wood floor that may need refinishing. We tend to gravitate to long-term owner-occupied properties, which are overdue for aesthetic updating, but well cared
What else? What are we overlooking?
When looking at neighborhoods the main test for us is would we want to live there for 1-2 years? We're balancing areas that will see some development for appreciation, while also being decent enough to live there now and attract desirable tenants. Cleveland Heights so far has been checking those boxes with hospitals/universities. Shaker seems a bit more restrictive with POS and taxes, but more family-oriented for the schools.
Thanks in advance for your feedback, for either advice on Cleveland neighborhoods or first time househacking, or anything else we might be overlooking.
Unfortunately your buy box doesn't match your budget. As an agent who has successfully helped over 25 house hack buyers in the last in 4 years, and have sold over 500 properties in my career, what you are looking for, in the price range listed simply doesn't exist.
The average sales price in Cleveland Heights for MF in the last 6 months is $337k. While Shaker Heights can be cheaper, the taxes as a percentage are higher. In the last 6 months, the average MF sale in Shaker is $232k. And Point of Sale, don't even get me started on that Communist BS.
Next, side by side duplexes are a Unicorn in the NE Ohio market. The ages of these properties weren't built as side by sides, and when they do come up, they are supremely expensive, and catch a premium every single time. I just closed on one in Cleveland Heights on Preyer Ave for $342k, and another one on Lee Rd for $353k.
Your wish list is more like a $350k property in Lakewood, Cleveland Heights, University Heights,Shaker Heights, et al.
It's time to re-evaluate what is most important, and then work backwards to figure out the locations where you can achieve the desired result.
I'm not here to step on toes, but it doesn't sound like you are aligned with your agent. This is often an uncomfortable conversation for agents to have with clients. They just hope and pray that somehow they'll find something you'll just accept.
There is a property that hit the market today that I can think of that meets all of your criteria, 6 beds, 4 baths, garage for each unit, side by side, yard, B class area, close to highways, and it's 15 minutes from Boston Heights, but alas, the listing price is well above your budget.
Best of luck on the endeavors.
