NexGen NewsDay V2
Cleveland Hits Headlines For All The Right Reasons
People across the country are sick of hearing about everything that’s going on in Cleveland! For so many years the brunt of many jokes, the Northeastern Ohio region has seen an incredible uptick in positive news over the past year that is translating into more business and investing in the region.
The most positive news is that the continued happenings are not coming from one business source. Whether you read the nations business page, events, sports or food related topics Cleveland is involved. Grabbing the national headlines with the return of LeBron James, or the award of the Republican National Convention and completion of the world wide Gay Games are of prominence.
However some of the most important news comes from less glamorous sources. The Cleveland Clinic’s continuous new medical discoveries, Ford and General Motors reinvestment in major manufacturing, downtown Cleveland’s residential boom and so much more. The Northeastern Ohio counties employ roughly 2.57 million workers according to Team NEO a regional marketing group. Projections are for another 150,000 new jobs coming to the region within the next 9 years.
The region has always been known for a lower cost of living compared to similar sized cities and the abundance of fresh water continues to be a resource few other cities can match. The arts remain an amazing opportunity for all residents and the sports franchises continue to improve. Even the weather, despite the frigid 2013 winter, has been free of the type of major disasters seen in the midwest and western states.
So while it’s easy to bask in the sunlight of Johnny Football news or the most recent hot event, smart investors know what so many others across the nation are finding out. Cleveland has a lot to offer for those that live here.
This Month’s Featured Properties
Our first feature is an all brick (low maintenance) home in a perfect location. Close to so many amenities whoever lives there won’t be able to take advantage of them all. 20 minutes from downtown Cleveland and less to Cleveland Clinic and major universities. Just a few miles away from the premier shopping destinations of N.E. Ohio. The home is in good shape and could be ready to rent weeks after you close the deal.
Click to download investment details sheet
Our second property is also a brick unit with attractive curb appeal. Solid suburban location close to the best shopping in town and a city with great schools. The area is close to public transportation and lots of local businesses. 20 minutes to downtown and even less to some of the largest suburban business centers in the region. A full three bedrooms will increase the rental fees and your monthly income.
Click to download investment details sheet
Invest NOW Before You Get Locked Out
It’s not news that home prices are on the upswing and little by little the bargains that are available are getting scooped up. However there is some greater real estate news that makes fewer headlines. The trend for younger couples and retirees to rent is growing at a faster pace than in any recent history.
According to the National Association of Realtors 5 to 6 million new renting households will develop in the coming ten years. While this is not such great news for those that rent since they lose the equity of their monthly payment this is great news for investors with the funds to create new home rental properties.
Certainly some people rent because they like the hassle free lifestyle it provides, but for many the tightening of credit, school loans, past foreclosures and other reasons prevent them from owning a home. These reasons and more contribute to the boom in rental investing.
The challenge for would-be landlords is finding ideal properties that make smart rental investments. In many cases the best locations can be homes that require some updates before they are rent-able. Despite the headache this may conjure in your head doing a home makeover is not the nightmare so many people make it out to be. There are thousands of professional remodelers, installers and fix it people that can transform worn homes into exciting new living spaces. Buyers/Investors simply need to figure the remodeling costs into their overall pricing model.
RealtyTrac recently reported that the best rental property cities were not the glamor locations in large cities such as New York or California. They were the challenged Midwestern cities that are seeing rebounds as the economy and real estate market find new life.
The benefits are plenty. Not only do you gain a nice monthly income and tax relief property, but your updates will make the home relevant if you do decide to sell many years later. Contact NexGen Invest to see the best rental values in this area.
Residential Investors Follow Commercial Investor’s Lead
Cleveland real estate has been booming lately. As an example, commercial buildings that have stood vacant for 10-20 years are now being bought up and refurbished into viable rental properties for new residents and businesses. Smart investors can parallel the commercial investing trends in Cleveland by looking into residential property as a solid way to increase your savings.
One investor remarked in Crain’s Cleveland Business magazine: “If I felt good about (investing in) the Cleveland market three years ago, I feel great about it now.” The Newmark Grubb group remarked that even older buildings, which historically were not providing any income for improvements, are now seeing increased rental rates and seeing improvements to bring them up to date.
It’s logical to connect the powerful resurgence of commercial property to the many benefits of investing in Cleveland residential homes for the smaller investor. Commercial investors take significantly higher risks when investing so they must make smarter choices. Residential investors can feel more comfortable in spending money on property in Cleveland when they see larger businesses doing the same.
Successful property management includes many components:
- Tenant Screening and Placement
- Customer Service
- Property Maintenance
- Property Inspections