HOUSINGNEWS REPORT
STATE SPOTLIGHT
CLEVELAND AREA HOME SALES RISING Sales YoY Pct Change
Single Family and Condo Sales
12,000
30%
There are some markets where it is almost impossible to buy and rehab for 65 percent of after repair value. … Cleveland is one of the best. People come from all over the world to buy here.
10,000
20%
8,000
10%
6,000
0%
4,000
-10%
2,000
-20%
Brian Stark CEO at real estate lender Nuvida Companies
-30%
0
property had been vacant for three years before he purchased it, sight-unseen. “I bought it cash and I got a rehab specialist to come in. … I lived in it for a year… It was a Fannie Mae property so to buy it owner- occupied I had to live in it for a year.”
from across the country, noted that the prime cash flow rental property opportunities in Cleveland are drawing not just out-of-state investor but also out-of-country investors to the city. “There are some markets where it is almost impossible to buy and rehab for 65 percent of after repair value. … Cleveland is one of the best. People come from all over the world to buy here,” said Stark, CEO at Nuvida Companies . An ATTOM Data Solutions analysis of investment homes owned by out-of- state owners shows that 5,970 of the 37,230 non-owner occupied single family homes in Cuyahoga County are owned by out-of-state owners (14 percent). That’s below the national average of 16 percent but above the statewide average of 11 percent.
rainbow, comprised of neighborhoods such as Cleveland Heights, Parma, and Berea, is better for buying cash flow rental properties, according to Cantwell, who said he still owns the first rental property he purchased in Parma — a duplex — to this day. “We want to be all in (purchase and rehab costs) for less than 80 grand. But in these cash flowing markets we are often able to go all in for less than 80 grand,” said Cantwell, noting that his finance company often works with out-of-town investors attracted to Cleveland because of the good cash flow opportunities available. “We love the Cleveland market. If you want cash flow, Cleveland has to be one of the most undervalued markets in the country.”
Cantwell cautioned that even in the outer-ring suburbs, not all neighborhoods are created equal.
“In Cleveland you want to be careful because there is not a lot of job growth. So you want to pick the areas with the real good school districts … or areas that have special amenities,” he said, adding that when given a choice between investments in two different school districts, “always opt for the best school district.”
Cash-Flow City The middle ring of the upside-down
Cleveland-based real estate financier Brian Stark, who also works with investors
ATTOM Data Solutions • P20
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