Multi-family homes within a reasonable commute of Beachwood (Columbus, Cleveland: real estate, apartment)

[nrheasley]

Hi, C-D!

2 years ago, I was in the market for a house near Beachwood, and the insight I received from you all was invaluable. I found the perfect house; however, I've been renting out the spare bedrooms to cover my mortgage while I pay off my student loans. The extra money has been fabulous, I've lived with some great people, and I love being a landlord. But I've had roommates for 8 years now, and I'm ready for my own space. I plan to continue renting out my current home and buy a duplex so I can continue to cover my mortgage, put more money towards my loans, and still live on my own.

I know there's a pretty decent multi-family market around me here in University Heights, but I want to keep my options open. If I stay over here, I'd like to move closer to Beachwood/Shaker Heights and farther from Cleveland Heights. I'd like to keep my commute to Beachwood to a half-hour or less WITH traffic, but I'd be willing to go slightly farther for the right house. I'm considering Lakewood just because it has a large multi-family market, and I wouldn't mind a change of scenery. My friends who live there love it, but the commute would suck Are there any other areas I'm forgetting about? I'm looking for areas suitable for a 26-yr-old single female. I've also check out Ohio City and Tremont, but they didn't have much.

TIA!

[WRnative]

Having read many of your posts, you enjoy access to downtown by rail rapid. Would you drive to a rapid station and park in the future for trips downtown? Would you want to move further away and forfeit rail rapid access entirely?

This website, if you haven't seen it already, may give you some ideas.

https://www.zillow.com/homes/for_sal...22_rect/10_zm/

Have you considered the possibility of increased wear-and-tear on your existing property once you're no longer living there? For this reason, would it be wise to buy a new property nearer your existing property if you choose to live there?

Have you considered keeping just a room in your existing property for weekday living, while buying a property elsewhere when you don't have to go into work? This may make Lakewood more acceptable to you.

Do you definitely want a duplex instead of a condo? Is your game plan to rent out one of the duplex units while living in the other one?

[nrheasley]

Originally Posted by WRnative

Having read many of your posts, you enjoy access to downtown by rail rapid. Would you drive to a rapid station and park in the future for trips downtown? Would you want to move further away and forfeit rail rapid access entirely?

This website, if you haven't seen it already, may give you some ideas.

https://www.zillow.com/homes/for_sal...22_rect/10_zm/

I'd be fine driving to a rapid station. Sometimes, I'll drive to the E 55th station to park and ride. If I'm traveling alone, it saves money on parking. Obviously I wouldn't prefer it, but if I really loved the house/neighborhood, it may be something I'm willing to negotiate.

Originally Posted by WRnative

Have you considered the possibility of increased wear-and-tear on your existing property once you're no longer living there? For this reason, would it be wise to buy a new property nearer your existing property if you choose to live there?

I don't think it would make a significant difference. I can't enter a tenant's unit without reasonable notice whether I live in UH or Lakewood, and I'm not going to drive by the house on a daily basis. I already own rental property in other cities. Wear and tear is just something you accept as part of the business. Yes, eventually, I will deal with a nightmare tenant even with the best methods of tenant screening. But that's why a percentage of each month's rent goes into RMR and I find excuses to enter the house regularly like for smoke detector inspections. Closer would be a perk, but it wouldn't be a huge deal to be a half hour away from my rental house.

Originally Posted by WRnative

Have you considered keeping just a room in your existing property for weekday living, while buying a property elsewhere when you don't have to go into work? This may make Lakewood more acceptable to you.

That's a very interesting suggestion. It probably wouldn't be worth it considering I'm often out of town on weekends. I have family in Youngstown, friends in Columbus and Akron, etc. I can get considerable more rent out of my current residence if I lease it as a whole house rather than by bedroom. It would also complicate my taxes and could make leasing tricky as its an abnormal living arrangement

Originally Posted by WRnative

Do you definitely want a duplex instead of a condo? Is your game plan to rent out one of the duplex units while living in the other one?

Yes, I definitely want a duplex (or tri or quad. Anything with 4 units or less is treated the same by the banks if it's a primary residence). I have no desire to deal with HOA's, and they're harder to sell if I need to get out. I do plan to rent out one side and live in the other.

[WRnative]

Originally Posted by nrheasley

I already own rental property in other cities.

Very interesting post. And this is the first time that you've clearly indicated that your personal residential requirements are linked to your desire to build a small rental empire. Obviously, you're emphasizing profit over immediate residential bliss.

My impression is that duplexes and triplexes are in short supply in Greater Cleveland, outside of certain communities. I remember friends who as a young professional couple lived in a brick duplex on the west side, perhaps in the West Park neighborhood, which has good Red Line service and would be convenient for Lakewood. It was a great upstairs/downstairs brick duplex and there seemed to be several in the neighborhood. Unfortunately, I don't remember the exact neighborhood (several decades ago).

Perhaps check rentals to find clusters of duplexes. Duplex owners may not be eager to sell with strengthening prices and the likelihood of higher mortgage rates in the years ahead, but if you know where you can find duplexes, that's half the game.

My impression of Lakewood duplexes is that they are older, wood frame buildings, perhaps with higher maintenance (I remember someone who lived in Lakewood who said the area for some reason was prone to termites, so check that out carefully).

There also are duplexes in Parma and Euclid. The latter would be relatively convenient for a commute to Beachwood, but stick to properties near Lakeshore Blvd. I'm doubtful that either community is what you're looking for from a social potential, but they may offer good value from an investment perspective.

https://www.zillow.com/parma-oh/duplex/

Have you considered searching for a buyer's real estate agent with familiarity of west side investment rental properties?

[nrheasley]

Originally Posted by WRnative

Very interesting post. And this is the first time that you've clearly indicated that your personal residential requirements are linked to your desire to build a small rental empire. Obviously, you're emphasizing profit over immediate residential bliss.

Agreed; I should have been more transparent regarding my long-term and short-term goals. Yes, I am looking to start creating income through real estate to help pay off my student loans. So far, it's been working out better than I could have imagined.

Originally Posted by WRnative

My impression is that duplexes and triplexes are in short supply in Greater Cleveland, outside of certain communities. I remember friends who as a young professional couple lived in a brick duplex on the west side, perhaps in the West Park neighborhood, which has good Red Line service and would be convenient for Lakewood. It was a great upstairs/downstairs brick duplex and there seemed to be several in the neighborhood. Unfortunately, I don't remember the exact neighborhood (several decades ago).

Perhaps check rentals to find clusters of duplexes. Duplex owners may not be eager to sell with strengthening prices and the likelihood of higher mortgage rates in the years ahead, but if you know where you can find duplexes, that's half the game.

My impression of Lakewood duplexes is that they are older, wood frame buildings, perhaps with higher maintenance (I remember someone who lived in Lakewood who said the area for some reason was prone to termites, so check that out carefully).

There also are duplexes in Parma and Euclid. The latter would be relatively convenient for a commute to Beachwood, but stick to properties near Lakeshore Blvd. I'm doubtful that either community is what you're looking for from a social potential, but they may offer good value from an investment perspective.

https://www.zillow.com/parma-oh/duplex/

Have you considered searching for a buyer's real estate agent with familiarity of west side investment rental properties?

Excellent advice! I do plan to use an agent, but I wanted to determine what areas I was interested in first, as I found that the agents I worked with to find my current home either worked the east side or west side, not both. As I'd now like to look on both sides, I'm not sure how I'll negotiate that.

[OHdanIO]

With you being a 26 year old single female, I’d agree that UH and Lakewood are probably most ideal. As WRnative stated, it’s difficult finding solid multi family homes in today’s market. One suggestion as far as finding multi families in your desired area—lookup eviction records and call those landlords asking if they have any desire to sell. If you come across a smaller investor and they just went through an eviction, you could catch them at the perfect time while they’re extremely irked and just want out. Direct mailers can also work with finding off market property, as well as targeted Facebook ads if you happen to have a business account (if you don’t have a business account, it’s free and easy to setup).

[nrheasley]

Originally Posted by OHdanIO

As WRnative stated, it’s difficult finding solid multi family homes in today’s market.

It sure is. Most seem pretty run down. Lots of opportunities for flippers out there.

Originally Posted by OHdanIO

One suggestion as far as finding multi families in your desired area—lookup eviction records and call those landlords asking if they have any desire to sell. If you come across a smaller investor and they just went through an eviction, you could catch them at the perfect time while they’re extremely irked and just want out.

That's genius. I've also heard the strategy of going after investors who are behind on their taxes.


Thanks for the great advice!

[L2DB]

I have one in Cleveland Heights that I'd be willing to sell, but I know that's not really your target area. DM me if you want to discuss further.