Cleveland is a strong real estate market for investors seeking stability in an area that doesn’t boom in good times and bust in bad times. Though the economy is diverse, the major employer is The Cleveland Clinic, a world-class, multi-specialty academic medical center that integrates clinical and hospital care with research and education. Healthcare is a recession-resilient industry, and healthcare workers, including nurses, X-ray technicians, physician assistants, etc., make fantastic tenants.
Pros of Investing in Cleveland
- They are one of a few RealWealth markets that (occasionally) offer multifamily opportunities.
- Cleveland offers affordable entry points, good cash flow and solid property management.
- It’s a desirable place to live because its location on Lake Erie offers residents water sports (which is rare in Midwest markets) in addition to its affordability.
Things You Should Know about Cleveland Real Estate Investing
- Property taxes can be high, varying a lot from suburb to suburb, though higher rents often offset this.
- The homes purchased by RealWealth investors are often 70+ years old, which can lead to higher maintenance costs. We recommend a sewer inspection (along with a full property inspection).
- The city and some suburbs use a Point-of-Sale (POS) system in which a city inspector inspects the property whenever it is sold. The Cleveland turnkey property team RealWealth refers its investors to has a detailed understanding of the POS criteria and proactively addresses potential issues during their extensive rehab process.
Cleveland Real Estate Investment Opportunity Quick Facts
This information reflects typical properties purchased by RealWealth investors in Cleveland. These numbers are estimates, and the actual property prices and rents will vary based on current inventory.
- Investment Objective: Higher cash flow, lower appreciation
- Types of properties for sale: REAL Income Single Family Rentals in A, B, and C neighborhoods; Occasional duplexes
- Average home price: $140,000 – $220,000
- Average monthly rents: $1,300 – $2,100
Is Cleveland a good place to invest in real estate
The biggest factor that makes Cleveland a good place to invest in real estate today is its affordability. The median home price in the Cleveland metropolitan area is $294,28, 18% lower than the national average. In the areas where RealWealth investors invest, it’s possible to find even better deals ranging from $125,000 to $150,000. Cleveland also offers good cash flow opportunities and stability, which is especially beneficial for newbie investors seeking lower-risk investments.
Turnkey Rental Properties for Sale in Cleveland
The turnkey rental property teams we work with in Cleveland sell fully renovated single-family homes and occasionally offer multi-family investment opportunities.
Frequently Asked Questions about Cleveland, OH
Is Cleveland a good place to invest in real estate?
Cleveland is one of the most stable markets in the RealWealth network, a market that does not boom in good times but also does not bust in bad times. That predictability is the point. The median home price in the Cleveland metro is $294,281, about 18% below the national average, and in the areas RealWealth members invest, deals range from $125,000 to $150,000.
The biggest stabilizing force is The Cleveland Clinic, a world-class, multi-specialty academic medical center that is the city’s dominant employer. Healthcare is recession resilient, and healthcare workers make high quality, stable tenants.
What should I know about real estate investing in Cleveland?
Cleveland has a few things investors need to understand before buying. First, property taxes can be high and vary significantly from suburb to suburb. This has to be evaluated property by property, not assumed. Second, many homes in the areas where RealWealth members invest are 70 or more years old, which can mean higher maintenance costs over time. A sewer inspection alongside a full property inspection is strongly recommended.
Third, Cleveland uses a Point-of-Sale (POS) inspection system. Whenever a property is sold, a city inspector checks it. RealWealth’s vetted team has deep experience with POS criteria and proactively addresses potential issues during the rehab process, which is a significant operational advantage for remote investors.
What types of turnkey investment properties are available in Cleveland?
RealWealth’s Cleveland team sells fully renovated REAL Income single-family rentals in A, B, and C neighborhoods, with occasional multi-family duplex opportunities. Properties are priced $140,000 to $220,000 with average monthly rents of $1,300 to $2,100 and cash on cash returns targeting 8 to 10%. All properties go through the team’s extensive rehab process, which is specifically designed to address Cleveland’s POS inspection criteria, meaning fewer surprises post-purchase for remote investors.
What cash flow can I expect from Cleveland investment properties?
Cleveland is a cash flow market targeting 8 to 10% cash on cash returns. Properties in the $140,000 to $220,000 range generate average monthly rents of $1,300 to $2,100. The minimum capital required is approximately $40,000. Note that Cleveland’s property taxes are variable by suburb and run approximately 1.8% annually, higher than most RealWealth markets. Higher rents in many suburbs help offset this, but the tax figure needs to be reviewed in each individual pro forma. Members can view current pro formas at realwealth.com/properties.
Can I invest in Cleveland real estate from out of state?
Yes, and Cleveland’s team is specifically set up to support remote investors navigating the city’s POS inspection requirements. This is the most operationally complex part of buying in Cleveland, and the team’s experience handling it proactively during rehab is a meaningful advantage. Sign up for a free membership and connect with the Cleveland team through the Properties tab, or schedule a complimentary strategy session.
What are property taxes and landlord laws like in Cleveland?
Property taxes in Cleveland are notably high relative to most RealWealth markets at approximately 1.8% annually, and they vary substantially from suburb to suburb. This makes it critical to review the tax line in every individual pro forma rather than assuming an average. Cleveland also uses a Point-of-Sale inspection system: a city inspector checks the property at every sale. RealWealth’s team proactively addresses POS criteria during the rehab process. Ohio has state income tax. A sewer inspection is specifically recommended for Cleveland properties given the age of the housing stock.
What makes Cleveland different from other RealWealth markets?
Cleveland is the most stability focused market in the RealWealth portfolio. The Cleveland Clinic as a dominant anchor employer, the predictable non-cyclical economy, and the Lake Erie location all contribute to a tenant base that stays put. It is also one of the only RealWealth markets that occasionally offers multi-family properties, giving investors the option of higher per-property income without the complexity of managing a larger building. The POS inspection system, while adding a process step, actually helps ensure properties meet city standards before investors buy.
How do I get started investing in Cleveland real estate with RealWealth?
Sign up for a free membership to access Cleveland pro formas and connect with the local team. Given the nuances of Cleveland’s POS inspection system and variable property taxes, a complimentary strategy session is particularly useful for first-time Cleveland investors.
