What real estate market is best? To me, this is an easy question. I definitely favor the Cleveland Market. Rooftop make 15%-18% return for our clients on their rental income in Cleveland. Let's look at the information on the Cleveland Market and then you can compare your market with our pick.
In Euclid, we buy homes in the $22k range. With rehab the final cost on these homes run $45,000. (I attached a link to a Euclid home we finished last month Click here). These homes lease option or rent very quickly. This home rented before we completed it. The rent is $950 a month. With taxes,insurance and property management, our client net cash flows $575 per month or $6900 a year. That's a 15% return just on the rent. These homes are valued at around $70,000-$75,000, so they also have a great equity position also.
All Rooftopinvestment areas are very similar to the last example.
The Second thing you need to look at is the area and neighborhood. Your home can only stay rented if the area and neighborhoods are nice. I see a lot of cheap homes in awful areas that get rented, but after your first renter, it's hard to get new ones. Click here to see one of our neighborhoods.
The third thing your should consider would have to be the maintenance. For a cash flow property, this may be the most important issue you should address before buying. I've talked to many investors that bought investment homes and have no clue who will manage or maintain their property. You must have quality in order to get checks every month. Rooftop has a giant maintenance team that gives our clients very reasonable cost on their properties. All quotes have to come through our office to be reviewed before they can start work.
So when your looking at each market, look at the numbers and the future of your property. Remember, you need at least a 13% return on your property in this market to make it worth your while. That's why I moved 3200 miles to Cleveland, I believe that Cleveland offers the best deals. Brett Young Rooftopvideo
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