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Travis Tomlinson

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Cleveland Is the Best Metro Area to Be a Real Estate Investor

by Travis Tomlinson

Many people today are trying to find a great way to make extra money.  That’s why many are getting into real estate investment.  It may seem easy just collecting a check from renters, but there’s more to it than that. Finding the ideal area where rents and appreciation are rising is not always easy. The good news is that if you’re considering investing in property in Cleveland, you’ve found the right place!

According to HomeUnion, a company that helps property investors, the Cleveland metro area was the best place in America to invest in single-family houses in the first quarter in 2017. That’s due to the fact that rentals appreciated 16.2% annually between the first quarters of 2016 and 2017, along with an 11.5% return on investment.

Adding to this, it turns out that homes are still affordable, with a median price of $75,512. Compared to the rest of the country, rents are high and home prices are low.  That’s an ideal combination for investors.

According to local experts, many investors come from California, New York, Colorado, and Texas, where homes are more expensive. So they come to less expensive parts of the country, like Cleveland, to buy rental properties to help them afford to buy their own home. In the end, the rent that the tenant pays covers your mortgage, management fees, repairs, and leaves enough left over for profit.

Typically, an investor will buy a home for $50,000 on the low end and rent it out for $850 - $900.  On the higher end, you can buy a home for $75,000 - $90,000 and rent it for $950 - $1200.  The better investment, of course, is the more expensive homes.  Usually, tenants take better care of the property and are more inclined to pay rent.

If you’re considering buying an investment property in Cleveland, make sure you use our website find the ideal investment. Go to the Communities tab to find a property in any neighborhood in Cleveland, along with data about each neighborhood. Or feel free to contact us at 216-252-6580 to speak with a property investment expert. We’re happy to help you find the perfect investment property in Cleveland.

Is your Property Turning Away Renters?

by Travis Tomlinson

Any property management business is reliant on a steady stream of renters, so it's vitally important that you do everything necessary to keep your property and it's maintenance at the forefront of your business.  Here are 7 areas to focus on to maintain a strong rental property:

Advertising your Property- Renters will search many different online sites and other rental resources before deciding on the properties to view. YOUR listings need to stand out from the rest of the group.  Make sure you have complete information and beautiful photos that give them a reason to tour your property first. Make sure to include all amenities and any smoking and pet policies.

Do you have a mobile web presence?  Since over 80% of people searching for both rentals and properties for sale will access your listings by a mobile device, it is important to ensure your website is responsive to all devices.  Make sure the content is easy to read and navigate.

Can your Renters apply online? In this day and time, any renter is going to apply online....and look for those companies and individuals who provide that easy access. Make sure you have an online form, downloadable, for your potential renter to utilize.

How does your Rental Property look?  While you don't need to update everything in a property before you set out to rent it, it is critical that the property is updated on a regular basis. If it's been decades since you've done any updating, that could be the reason it's difficult to rent.  Does your property have wood paneling, popcorn ceilings, outdated wallpaper or appliances that need work?  Then it's time to focus on those areas and update accordingly for better rental success and income.

Do you allow online monthly payments?  In our technologically advanced world most individuals now pay the majority of their household bills online...especially the Millennial generation! Remembering to drop off their monthly check, in the midst of crazy everyday lives, makes renting a property without this option less attractive.

Are your current Renters happy with your attention to Maintenance Requests?  While you may not get many maintenance requests on a well maintained property, they do happen periodically.  Do you quickly respond to your tenant? Are the requests handled in a timely fashion?  If not, this can tarnish your reputation in the rental property business.

What are your Tenants receiving from you?  While you're in this business to make money on your rental properties, your tenants need to feel they are getting the most 'bang for their buck' as well.  To gain a new tenant you may want to look at offering something upfront- offering discounts, area gift cards, allowance of a pet, etc.  The property should also offer some common use areas outside of their rental unit. 

For expertise in property investment and management, visit our website or give our team a call.

Why Invest in Properties in Cleveland Ohio?

by Travis Tomlinson

Investing in Real Estate is hotter than ever...but choosing the right market is critically important.

Cleveland Ohio is one of the hottest markets for real estate investing in 2017!  Why you ask?  

Downtown Cleveland has a 95% housing occupancy rate.

Listed as one of the Top 10 Job Markets for recent college graduates

Cleveland is headquarters to 11 companies on the Fortune 500 list:

  1. Applied Industrial Technologies,
  2. American Greetings Corporation
  3. Eaton Corporation
  4. Ferro Corporation
  5. Key Corporation
  6. Lincoln Electric Holdings
  7. Medical Mutual of Ohio
  8. Nacco Industries
  9. National City Corporation
  10. Parker Hannifin Corporation
  11. Sherwin Williams Company

We are home to 27 Area Colleges and Universities of which these rank in the Top 50 in the State:

  • Case Western Reserve
  • John Carroll University
  • Baldwin Wallace University
  • Franciscan University of Steubenville
  • Cleveland State University
  • Cleveland Institute of Art
  • Notre Dame College

Northeast Ohio is considered a ‘Hot Spot’ for Entrepreneur’s in the region.

Cleveland is a Region Banking Hub; with 12 Federal Reserve Banks

Home to our beloved Cleveland Browns (NFL), Cleveland Cavaliers (NBA), Cleveland Indians (MLB) & the Cleveland Monsters (NHL)

The Rock and Roll Hall of Fame is located here and receives over 7 million visitors annually!

Cleveland Clinic is the #2 ranked hospital nationally!

 

The Cleveland Ohio area offers Real Estate Investors an excellent platform from which to grow their portfolios with a valuable investment offering a strong monthly cash flow.

Learn more about the Real Estate Invest opportunities here by contacting our team or visiting our website.

Happy Holidays from your Lokal Team!

by Travis Tomlinson

Should I Buy a Home Now?

by Travis Tomlinson

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall down the road, while others are convinced that home prices will go up.

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates while they are still available.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

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