HOUSINGNEWS REPORT
RUST BELT RENTAL TOUR
CLEVELAND (CUYAHOGA COUNTY) RENTAL TRENDS AVG FAIR MARKET RENT (3-BEDROOM)
ESTIMATED GROSS ANNUAL RENTAL YIELD
RENTAL MARKET PROFILE: CLEVELAND (CUYAHOGA COUNTY) • Median Home Price: $114,500 (Up 9 percent) • Average Fair Market Rent for 3-Bedroom: $1,105 (up 1 percent) • Potential Gross Annual Rental Yield: 11.6 percent (down 8 percent)
25.0%
$1,105
$1,099
$1,092 $1,091
20.0%
$1,092
$1,058
$1,027
15.0%
$1,017
$1,013
$994
$985
$978
10.0%
$954
5.0%
Sources: ATTOM Data Solutions, HUD
0.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Motoring Along in Detroit Heavily dependent on the automotive industry for job security over many decades, unemployment in “The Motor City” hit its peak at 17.2 percent in June 2009 before falling to 4.2 percent as of August 2018. Detroit-based Strategy Properties has renovated and sold roughly 1,500 Detroit homes to investors since 2010, according to its president, Michael Jordan. “As a company we specialize in bringing distressed and undervalued properties to high value,” Jordan said. “Since 2014 we have seen tremendous growth. We manage third party homes, but our main business is managing the homes we produce.” Focusing in and around the west side of Detroit, Jordan’s company utilizes every marketing channel possible to
“In Cleveland we got a one-two punch. We lost our manufacturing base and we were one of the hardest hit in the foreclosure crisis.”
KELLY STUMPHAUZER OWNER, PROSPER CLEVELAND
“That’s where opportunity is, but where the risk is too. If you don’t fix the mechanicals you’re walking into a nightmare in deferred maintenance five to 10 years from now,” Cantwell said. Prosper Cleveland focuses on buying distressed properties, fixing them up and selling them to investors, according to owner Kelly Stumphauzer, who is also a real estate agent with Keller Williams. “In Cleveland we got a one-two punch,” she said, explaining the source of the distressed deals still available in the Cleveland area. “We lost our manufacturing base and we were
one of the hardest hit in the foreclosure crisis.”
Prosper Cleveland sells around 100 single family rental homes a year in class A and B neighborhoods in Cuyahoga County to out-of-state investors primarily from the west coast. On average the homes are 1,300 to 1,400 square feet, with three bedrooms, one and a half baths, and a detached garage. Investor demand is based primarily on cash flow and the cap rates they’re getting, with rents averaging around $1,150 a month, Stumphauzer estimated.
17
NOV 2018 | ATTOM DATA SOLUTIONS
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