Cleveland Real Estate Investment Opportunities 2019

Real Estate Investing Key Factors: Job Growth, Population Growth, and Affordability

For cash flow and equity, the best places to buy rental property have these in common.

These factors influence the market and lead to good real estate investing opportunities. Cities with these help you bring in high cash flow through rental properties while the prices are low. You’re likely to see an increase in your equity.

Here we’ll discuss what makes Cleveland, Ohio a great place to invest in 2019:

Cleveland, Ohio

Cleveland is among the most active markets in the country. It offers high cash flow and future growth to investors. Cleveland has the 12th largest economy in the region with a workforce of over 2 million people.

As more than 800 units were added to the market in 2017, the residential occupancy of Cleveland averaged to 94.5%. Most of the people getting residency in Cleveland consisted of the popular millennials. This shift in demographics is named “brain gain.” Year by year home sales goes up by 12%.

Neighborhoods in Cleveland:

Cleveland is categorized into different grades of neighborhoods. The Grade A neighborhoods are where the majority of homes are owner-occupied. These single family homes are $150k and up. The Grade B neighborhoods are a mix of owner-occupied and rental single-family homes. For real estate investing, neighborhoods are the most ideal, as the houses here can be rented out for $800-$1000. Grade C neighborhoods are the same as Grade B. But, the monthly rental of these single-family homes is between $600-$800. These neighborhoods are an ideal place for low-income workers.

Statistics on Cleveland’s Market:

• Income from Median Household: $51,000
• Median Home Price: $122,000
• Median Rent: $1,391/month
• Metro Population: 2.1M
• Annual Job Growth: 1.12%
• 5-Year Equity Growth: 15.10%
• 5-Year Population Growth: -0.79
• Unemployment Rate: 5.5%

Fast Facts About Cleveland:

1. Rapidly growing healthcare economy
2. Has the nation’s first Global Center for Health and Innovation
3. 10 Fortune 500 company headquarters
4. Second largest live theater in the USA
5. Home to three major sports team – they bring in billions of dollars every year
6. B neighborhood property is easy to buy – as low as $70,000 that can be turned into $800/month.

Reasons to Invest:

Job Growth:

The growth in healthcare and technology has the millennials wrapped around Cleveland’s finger. The city attracts them because of growing job opportunities. Some of the companies they move towards include The Cleveland Clinic, Key Corp and Eaton Corporation.

Population Growth:

The number of people moving to downtown Cleveland keeps growing. An average of 12,500 people moved to Cleveland in 2015. This is huge as the majority of these people included millennials.

Affordability:

You can buy a single family home in Cleveland at a fraction of their mid-2000 prices. If you get your hands on a house for $70,000 to $85,000, it is easy to rent it out at $800 – $1000 per month. This means that you have a good chance of gaining cash flow and appreciation in the market. This is great news for investors looking for an opportunity.

It’s easy to understand that real estate investing is easily the best thing to do in Cleveland. It won’t hurt your pockets, and the experience won’t leave a bad mark. You can check out these steps before you invest.