Cleveland, OH 44120

Hello all,

I am looking at buying a 4/2.5 1900 Square foot property in Shaker Heights, that after the rehab I will have about $158K into it. Should pull $1300 a month rent.

My question is are there any other investors in this area?

If so what feedback or experiences do you have on this area?

Unless you’re planning to sell it to a newbie that knows nothing about rentals, that’s a sure loser! It will bleed negative cash flow.


As Mike said this is a sure loser. It doesn’t even sniff a 1% rule, let alone 2%

Watch out for the property taxes in Shaker. They are outrageous!
It would be impossible to cash flow on most properties there.
Spectacular homes though. Good deals now if you were planning to live in one as opposed to investing.

I’m familiar with the 50% rule.
Can someone explain the 2% rule?


For a residential rental property to cash flow property, the monthly gross rents need to be about 2% of the acquisition cost (purchase price plus rehab). In other words, divide the monthly gross rents by .02 (or multiply the monthly gross rents by 50) to get the maximum acquisition cost.

This is a screening tool, YOU STILL MUST DO A CASH FLOW ANALYSIS. As the number of units in an apartment building increase, you often need MORE than 2% for the cash flow to be adequate

Good Luck,


Shaker is not the best place to own a rental. The property taxes are high and the city gov is worse than Cleveland Heights on landlords…and that’s tough to do. East Cleveland has already contaminated the west and north west sections of CH and slowly but surely are creeping into Shaker. For this reason the cities are purposely making landlords lives very difficult.

I’ve been having much better luck NEXT to Shaker in the city of Cleveland. I own a 35 unit behind Shaker Square and several single fams and multi fams on the opposite side of the square. All the benefits of Shaker local but with Cleveland Property taxes.

GooD Luck! :beer

Thanks, for the great feedback.

I had a gut feeling it was not a good deal but the person who presented it to me was glowing and going on about it.

I will pass on it for sure.

Good Looking out!