Top Locations Where to Look for Cleveland Houses for Sale to Invest In by Hamza Abdul-Samad June 9, 2019June 9, 2019 by Hamza Abdul-Samad June 9, 2019June 9, 2019 Affordability is arguably the most motivating feature in the real estate business. A rental property can become profitable, sure, but it either is or isn’t affordable. Some rental markets, such as the Cleveland real estate market, are hotbeds for inexpensive properties. What are some other reasons you should invest in the Cleveland housing market? Where can you find the best Cleveland houses for sale? What about short-term rental properties in Cleveland; is Airbnb legal in Cleveland? To learn the answers to these pertinent questions, keep reading this post! Related: Here Are the 10 Most Affordable Real Estate Markets for 2019 Cleveland Real Estate Market: City-Level Data Before we tackle any of the previously mentioned questions, we need to quantitively evaluate the Cleveland real estate market. We can do so by using the data from an investment tool called the rental property calculator. Wondering where you can find a rental property calculator? Just click here! The link will take you to Mashvisor’s page where you can learn about our tools! In the meantime, take a look at the data of the average Cleveland real estate investment below, provided by Mashvisor. Pricing Median Property Price: $178,379 Price per Square Foot: $112 Price-to-Rent Ratio: 15 Traditional Investing Rental Income: $974 Cap Rate/ Cash on Cash Return: 1% Airbnb Investing Rental Income: $2,055 Cap Rate / Cash on Cash Return: 5.4% Occupancy Rate: 48.7% Why You Should Invest in the Cleveland Real Estate Market As you can see from the data, there is a lot to talk about with the typical Cleveland houses for sale. Cleveland investment properties are affordable, profitable, in demand, and successful with Airbnb. Affordable Investment Properties The primary selling point of Cleveland houses for sale is that they are extremely affordable. Some of the best neighborhoods in Cleveland, for instance, have properties that are less than $100,000! The median Cleveland real estate investment price is an impressive $178,379. This is about half the national median price of approximately $340,000. Even relative to the Ohio real estate market, Cleveland is very inexpensive. According to Mashvisor, the median Ohio property price is $220,770. Not only is the average price cost-effective, but the city’s cost of living is also 23 percent lower than the national average. Cleveland’s affordability comes in more ways than one and will definitely attract both real estate investors and prospective tenants. Profitability and Appreciation Affordability is a great feature for rental properties, but the bread-and-butter of real estate investing is rental income. Profitability is another facet the Cleveland housing market excels in. The average traditional rental income in the city, for example, is $974. This is merely an average, meaning that actual Cleveland houses for sale will most likely generate higher rental income. Airbnb Cleveland is even more profitable, with an average ROI of 5.41% and rental income of $2,055. Cleveland investment properties also benefit from another form of profitability: appreciation. During the last 12 months, the appreciation rate of the Cleveland housing market was 6.16%. So far, the appreciation rate of 2019 is following a higher trajectory. The rate of the last quarter was 1.82%, which annualizes to 7.49%. The high appreciation rate of the market is another great reason to purchase Cleveland houses for sale. Rental Property Demand The demand for a Cleveland investment property is another reason to buy Cleveland houses for sale. As seen from Mashvisor’s data, the price-to-rent ratio is over 15, meaning it is more affordable for a person to live in a Cleveland rental property than to purchase a home. This gives investors an advantage, as renting out becomes the go-to for residents. This is clearly the case in Cleveland, with 58 percent of residents renting out an investment property. Related: The 5 Most In-Demand Cities for Renters Airbnb Cleveland As indicated by Mashvisor’s data, Airbnb investing is the more profitable strategy for Cleveland investment properties. Tourism has been peaking in Cleveland as of late. In 2017, over 18.5 million tourists visited the city, which was a 2.3 percent increase from the previous year. This increase set a record and trumped the 1.9 percent and 2 percent increases of the US market and Ohio real estate market, respectively. With an $8.8 billion impact on the city’s economy, it’s easy to see why many Cleveland houses for sale are being purchased and used as Airbnb rentals. Is Airbnb Legal in Cleveland? But before you consider purchasing Cleveland houses for sale for Airbnb purposes, you need to know the Airbnb regulations in Cleveland. Fortunately, Airbnb is fully legalized in Cleveland. The most notable Airbnb regulations are a business license requirement, 5.5% Bed Tax, and a 3% Transient Occupancy Tax. To learn more about the Airbnb regulations in Cleveland, visit Airbnb’s Help Page. Find a Profitable Airbnb Investment Property Best Neighborhoods in Cleveland: Traditional Investing We can now answer the final question mentioned at the beginning of this post: What are the best places to search for houses for sale in Cleveland, OH? According to Mashvisor, the best neighborhoods with Cleveland real estate for sale (for traditional investing) are St. Claire-Superior, Euclid Green, and Union Miles Park. St. Claire-Superior Pricing Median Property Price: $60,000 Price-to-Rent Ratio: 5 Traditional Investing Rental Income: $990 Cap Rate / Cash on Cash Return: 6.6% Euclid Green Pricing Median Property Price: $178,974 Price per Square Foot: $104 Price-to-Rent Ratio: 10 Traditional Investing Rental Income: $1,457 Cap Rate / Cash on Cash Return: 4.4% Union Miles Park Pricing Median Property Price: $63,500 Price per Square Foot: $43 Price-to-Rent Ratio: 7 Traditional Investing Rental Income: $802 Cap Rate / Cash on Cash Return: 3.6% Best Neighborhoods in Cleveland: Airbnb Investing What about Airbnb; where to invest in real estate in Cleveland for Airbnb investing? According to Mashvisor, the best neighborhoods for Cleveland houses for sale are Jefferson, Central, and Tremont. Jefferson Pricing Median Property Price: $98,009 Price per Square Foot: $85 Price-to-Rent Ratio: 10 Airbnb Investing Rental Income: $2,380 Cap Rate / Cash on Cash Return: 14.5% Occupancy Rate: 54% Central Pricing Median Property Price: $125,700 Price per Square Foot: $80 Price-to-Rent Ratio: 11 Airbnb Investing Rental Income: $2,902 Cap Rate / Cash on Cash Return: 13.8% Tremont Pricing Median Property Price: $266,300 Price per Square Foot: $123 Price-to-Rent Ratio: 19 Airbnb Investing Rental Income: $2,183 Cap Rate / Cash on Cash Return: 6.9% Occupancy Rate: 55% To sum it all up in one sentence: the Cleveland housing market is an affordable, profitable, appreciable, in-demand, and Airbnb-friendly Midwest market in 2019. To start searching for Cleveland houses for sale, CLICK HERE to start your FREE 14-day trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCleveland OHMidwestTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Rental Management Fees You Need to Budget For Next Post Learn How to Make Money with Airbnb Rental Arbitrage Related Posts Should You Be Investing in Orlando Real Estate Investment Properties in Early 2018? The 10 Most Profitable Locations for Traditional Rentals in the US Housing Market at the End of 2017: Cash on... What Are the Best Cities for Florida Airbnb Income in 2022? Buying an Investment Property 2018: The Highest Price to Rent Ratio Markets in Florida How Much Will Investing in Texas Real Estate Cost in 2019? 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