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My primary investment focus over the last year and a bit has been multifamily in the Cleveland, Ohio market. Cleveland has a very diverse market with 'D' class neighborhoods right along side 'A' and 'B' class neighborhoods. East Cleveland is one of those 'D' class neighborhoods that many of you wouldn't want to walk around in at night, or even in the daytime in some areas. For investors comfortable with that market, it can be a great investment opportunity as long as you understand that market and are prepared to work in it.

East Cleveland has a problem with derelict and unsafe buildings scattered throughout the city, and it is very evident anywhere you go. With a recent federal grant all that should start to change. As a recent article in The Neighborhood Voice outlines, the City is now able to tear down many of these derelict buildings and prepare the sites for new development, or public green space. There is a feeling that with derelict buildings gone, and space made available for new development, some new investment will come East Cleveland's way, and with it some new found prosperity.

So why does this interest myself and you, fellow investor? The multifamily market in Cleveland has dried up over the last several months, and the number of good turn-key and value-add investment opportunities are getting harder to find. There are lots of properties avaiable at 10 caps and below, but the plethora of 15+ Cap opportunities have almost disappeared. East Cleveland was a great source for value-add properties and some of those are now facing the wrecking ball.

What this also means is that for those of us who are in, or getting into the market now, there is renewed hope for some appreciation on our assets on top of the great returns these buildings offer. The hope of asset appreciation in the East Cleveland market was not generally expected from most investors, but that may change now.

If you are interested in this market, and want to get in now on one of these rare opportunities, contact us now as we have a great asset available in East Cleveland for a cash investor. Total commitment is under $450,000 including rehab for an estimate 18 Cap property.

 


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