Does anybody have an idea about the real estate market in Cleveland, or, more specifically, the rental market?
C’mon, there isn’t anybody on the board who has had experience with Cleveland OH rentals?
I know someone that does.
I am a General Contractor in Cleveland, I work with Investors on a daily basis, these investors are out of state, and they buy here. I know the market very well, we buy, sell and rent here. Email me lets talk.
Dave
Are you looking to buy rentals, if so what part of town and price range are you looking at?
Im a agent in the cleveland area(eastern suburbs).
I just sold a rental today. As for the market, cleveland is one of those markets that is never hot or cold. We run market reports everyday, but its hard to explain to people becuase all they see are the headlines in the news about how to market is horrible, blah blah, but little do they know, that pretty much only applies to the major cities(LA, Miami, ect.)
As for rentals, we see alot of people that cant sell thier how turn around and try to rent it. We have the most rentals on the market now than we did for the past 6 years.
Hope that helps, If you have any other questions, let me know!
Thanks guys.
I’m looking in the Garfield heights/Maple Heights area, as well as the up and coming areas of downtown Cleveland to include Woodland, Euclid, etc. I’m looking to invest in rentals, but not knowing the market, it’s hard to determine a max. price. however, I’m looking for cash flow in the $400-$500 range.
Dream on! I’m not from Cleveland, but I am from Ohio. You are not going to find many (any) houses that will provide a $400 to $500 monthly cash flow! I strongly suggest that you become educated on the rental property business before you invest in anything. The reason that there are more rentals on the market today, is that all the newbie out-of-state landlords from California are going out of business in droves. They didn’t have a clue and now are paying the price.
Mike
propertymanager is right. I don’t know how you talked to that got you looking for $400 to $500 month cash flow. But if that is what you want, you can get it if you put enough money down on the property.
Just remember that teal estate is not any better than any other investment if you tak away the leverage aspect.
Strange, I just happen to have a 4 unit apt. building on the west side of Cleveland, transitioning neighborhood(new res. construction), fully occupied, netting $1320/month selling for $80k.
The current owners have enjoyed $400 to $500 a month cash flow for the last 6 years and are selling to get a bigger cash flow property.
There is a way to make good cash flow, you just have to get the best deal you can.
I’m thinking that they meant that it is EXTREMELY difficult to get $500 to $600 PCF on a SFR…not a multi-family.
Heck if you had a 100-unit, you’d probably get over $500 a month!
Keith
Bobby,
Since it is a 4 unit building, then your return per unit would be $100 to $125 IF your numbers were correct. Unfortunately, those numbers are a little suspect. Throughout the entire United States, operating expenses (including capital expenses) run 45% to 50% of the gross rents. In this case, operating expenses would be $660 per month, leaving $660 to pay the mortgage. The mortgage on $80K for 30 years at 7% is $532. Therefore, the real world cash flow for this building is more like $130. Divide that by 4 and the cash flow per unit is about $32 per unit. No wonder the owners are selling in favor of a building that has better cash flow! People can claim almost anything if they ignore enough of the expenses.
These operating expenses are based on paying for everything like management, maintenance, etc. If the owners do it themselves, then they certainly could do a little better, maybe another $200 per month. However, this money is really earned, not the result of the building.
Mike
Great info. Thanks to all who posted.
What would be the realistic cash flow to expect from SFH and multi-family rentals in the Cleveland area?
Hey, I’d try to help you but one of these “experts” who have hundreds of posts on this website and don’t even live in Cleveland will most likely disagree with me.
This site is lame anyway. Mainly for tire kickers and windbags, neither of which are really making any money at real estate.
Those offended, don’t bother to respond. I’m deleting this site from fav’s. I’d rather profit from real estate than talk about it.
BobbyDog,
I’d like to hear your opinion
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