Buy Rental Income Property | Cleveland Real Estate Investing

Income Rental Property Investment in Cleveland Real Estate

Introduction to Real Estate Investment

Real estate is historically one of the most popular investments. There are a number of reasons for this. First, there is the fact that real estate has been around for hundreds of years. In addition, it tends to be a safer and more stable investment compared to stocks.

There are different ways that you can make money with real estate investment: You can make money by flipping houses, investing in commercial properties, or renting out an apartment. You can also buy a house and rent it out as an investment. Traditionally, if you plan to buy a home and then sell it later for a profit, you will need to have some deeper knowledge about real estate and the various ways you increase your property’s value so you can make the most profit from the sale.

There are several factors that increase the value of or demand for a property, both as rental property and a property to resell. One such factor that impacts is its condition. Historically, this has been a difficult and complicated process to undertake individually, which is why many people who want to make money through real estate choose to fractionally invest in rental properties.

In order to make money from a rental property, you also want to find a property that is in demand. There are several factors that determine whether or not a property is in demand. One of these factors is location. If a city is growing quickly, the demand for housing is going to increase. This means that the value of the homes in that area also will go up. As a result, you likely are going to be able to charge more in rent and/or have more people interested in renting your property. Whenever possible, when you buy a house–regardless of whether or not you want to rent it out or resell it–it is a good idea to invest in a home that is located in a place that is growing.

If you want to make money via real estate investment, and are interested in rental properties to purchase, you should consider looking in the high-demand area of Cleveland, Ohio. Right now, many people are looking to move to Cleveland, Ohio. This means that the real estate market there will likely remain “hot” as many people will be looking to buy and rent homes in the area.

Cleveland Abstract

Cleveland - A Chocolate City

The city of Cleveland, Ohio is known as the "Chocolate City" because of the abundance of chocolate companies located there. But, it is also known for its manufacturing and industrial strength. The city has grown since then and now has a population of approximately 812,000 residents.

In addition to having a strong industrial base, Cleveland is also home to some of the best universities in the country. There are three universities that are located within the city limits, Case Western Reserve University, Cleveland State University, and John Carroll University.

The city is also home to one of the best performing public school systems in the nation. The Cleveland Public Schools have been rated as the best school district in the state of Ohio. In fact, they have been ranked as the second best in the nation by U.S. News & World Report. The Cleveland Schools have been rated as "High Performing" or "Distinguished" in all of their subjects, including English, Math, Science, and History.

Located in the state of Ohio, the city of Cleveland is on the southern shore of Lake Erie, just across the border from Canada. Cleveland is home to a major league baseball team, a major league football team, and a major league basketball team.

Why Invest in Cleveland Income Property

If you want a rental property with a solid cash on cash return and are looking for a property that will appreciate, Cleveland is a good place to buy. Home values have increased by more than 22% year over year as of December 2021. Cleveland also has seen an increase of $22,000 in the average home prices in 2021. In fact, Cleveland ranked #5 on the top housing markets to watch in 2021. This means that the market is very good for rental property investors.

Having explored the best areas to invest for Cleveland properties, we found that rental occupancy rates in the greater Cleveland area are as high as 90 percent. In addition, at 54%, Cleveland has the second highest number of owner-occupied homes, with rents up 11% year over year.

Cleveland is a fast growing city with many recent graduates. As the diversified economy has taken root in Cleveland, it has helped the city to adapt to a more well-rounded approach to growth.

Cleveland real estate is not only affordable but also competitive and the houses typically go under contract the same day they are listed. With that being said, there are many real estate bargains in Cleveland.

The Cleveland area has a low ratio of homes to income and the rental market is strong. The price to income ratio is high for homes which is why it is a good area for rental property investors. Cleveland has a high vacancy rate and a high cash-on-cash return of 20%+. This is another reason that Cleveland is a great place to invest in real estate.

Investing in Cleveland Rental Income Property - The Old Way

Investing in rental income property in Cleveland, Ohio has long been an excellent way to make money. However, prior to fractional real estate investing, the actual process of rental income property investment had been a difficult process to complete, requiring a lot of capital and time input. In this section we will look at what was previously required to invest in income property before the advent of tokenized real estate.

In Cleveland, Ohio there were several ways to make money with rental income properties. You could buy a home that you live in and rent out the other rooms, or you could buy a vacant lot and build a house and then rent it out. There were also apartment complexes that have a percentage of their units sold and rented out.

Significant Capital Requirements

If you decided to buy a home and rent out the other rooms then you can do so in two ways. First, you could purchase a home that has one or more vacant rooms. You could then renovate the room(s) and put them up for rent. Or, you could purchase a home with no vacant rooms and then add new rooms and/or separate ADUs onto the property which would then be made available for rental income. In either case, this can require a significant amount of capital or financial input - to buy the home and complete any needed renovations and additions.

Navigating through the Legal Red Tape

If you decided that you wanted to purchase a vacant lot and build a home and then rent it out, you would need to be aware of zoning laws. Some cities have restrictions on building houses on vacant lots. You likely had to check with your city planning department to see if there are any zoning restrictions. If there were zoning restrictions then you may have needed to purchase a home with one or more vacant rooms first.

Costs of Dealing with Multiple Third Parties

At this point, once you decided how to proceed then you likely would have contacted your local real estate agent, your local bank and your mortgage company to find out about available homes or vacant lots for sale as well as the financial and logistical steps required to locate the ideal income rental property, finance it, buy it, then hire a competent property management company to maintain the property and mange the tenant relationship.

This took a lot of steps and effort before you even started to see a return on your investment.

Rental Income Property Investment in Cleveland - The New Way

Thankfully, many of the significant hurdles preventing people from making money in the Cleveland area property investment market have been removed due to technological advancements achieved by Lofty.ai’s fractional, tokenized real estate rental income property platform. At Lofty, previously restrictive factors and barriers to entry have been minimized so much so that a mainstream investor can now invest as little as $50 and be earning rental income within a matter of minutes while not having to single handedly trudge through the old way of entering the rental income market.

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