As a real estate investor, the number one question people ask me is, why do you love Northeast Ohio for single family rental properties? I’ve answered this question so many times that I’m able to give a pretty simple & consistent answer.
There’s three main reasons this is my favorite market to invest in. First, the thing that initially attracted me to this market are the price points. For the cost of a typical down payment in many markets, I can purchase an entire home.
Most people, especially those living on the east or west coasts, don’t even know or believe that it’s possible to purchase a single family home for less than $60k. Purchasing a property at a fraction of its replacement cost is almost has incredible advantages.
The second reason I love this market is the strong demand for quality rentals. Demand is important, because the price is irrelevant if you can’t find quality tenants to rent your property. Without demand I’m not sure anything else really matters. I’m not saying the demand is so great that you can just put anything on the market and you will find an amazing tenant. What I’m saying is the demand exists and as and investor your goal should be to access it.
So far we have (1) purchase price, (2) ability to lease. My #3 reason brings us full circle, because, once you’ve purchased a property and leased it, now you need to manage it.
My last reason is really important and often overlooked. The third reason I love these markets is the clarity I have when navigating disputes between landlords and tenants. The process is clearly defined and costs are reasonable.
Why is this important?
When you have a problem with a tenant and if your like me and have owned as many rental properties as I have, you are bound to have conflict with a tenant. Wether it’s for non-payment or property damage or something else disputes occasionally arise.
Fortunately, if and when this happens, you will be able to clearly predict 3 things..
- How to resolve it
- How long will it take
- How much will it cost
So thats my three top reasons why I invest my own money in Northeast, Ohio. Price, demand and conflict resolution.
I hope I gave you some things to think about when it comes choosing the right market. Best of luck with your real estate investments.