All Forum Posts by: Joshua Janus

Quote from @Richard Bautista:

Good evening,

Just saw Cleveland, Ohio has relatively inexpensive houses which has the potential to cashflow. I'm looking to investigate this market a little further and wondering if anyone can help me out. I would like to speak with local investors, real estate agents, property managers, lenders, etc. from the area. Please feel free to DM me. 

THank you,

Richard

Cleveland, Ohio is a great market for cash flow. Here are some of the areas that I focus in on:
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

Quote from @Polat Caglayan:

Detroit or Cleveland?

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 home value 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.

Understand that the PMs that take in less revenue have less people to hire to help manage your house, tenants, admin work etc. Going with the cheapest monthly % will almost always come to bite you in the end. I have seen this dozens and dozens of times.

PMs are generally not project managers as well - and if they are get ready to pull your wallet out as they will charge outrageous prices for renovations and unit turns. I've seen quotes on roofs for $15,000 that should never be anywhere that number and well under $10,000. 

Almost should previously own an investment property before working with investors as well. 

Scrape and paint! Get all the lead off in needed

Quote from @Joe Villeneuve:

Quote from @Joshua Janus:

Quote from @Jen Anderson:

Hi,

I have some rental properties and I'm getting 5-6 calls a day soliciting me for an off-market deal to buy my property. It's incredibly annoying and disruptive and I just want it to stop. Can anyone give me tips on what I can do here? Is there something I need to do to get my phone number and name disassociated with these properties or at least made private?

Thanks!

 Put your number on the national do not call list. 

https://www.donotcall.gov/

Takes 2-3 months to kick in. You will thank yourself it cuts down the calls by 90% in my experience. 

Temporary.  There are many ways to get around it, faster than it kicks in.

 What do you suggest?

I did it 2 years ago. rarely get cold called/texted on tons of parcels owned. 

Scrape and paint the siding if needed, window frames outside/inside and the windowsill, now add mulch where needed etc. It's not too bad. Avoid the contractors that want you to replace literally everything siding, all the windows etc. 

Quote from @Jen Anderson:

Hi,

I have some rental properties and I'm getting 5-6 calls a day soliciting me for an off-market deal to buy my property. It's incredibly annoying and disruptive and I just want it to stop. Can anyone give me tips on what I can do here? Is there something I need to do to get my phone number and name disassociated with these properties or at least made private?

Thanks!

 Put your number on the national do not call list. 

https://www.donotcall.gov/

Takes 2-3 months to kick in. You will thank yourself it cuts down the calls by 90% in my experience. 

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 home value 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.

Investors tend to want retail market value of an occupied S8 unit that an owner occupant would hypothetically buy. That just won't happen. Either discount the price as is or vacate the house, clean it up and list for sale. Option 1 is much easier and faster.