Cleveland is a House Flipping Hot Spot
The Wall Street Journal (reposted on Realtor.com) says Cleveland, Ohio is a “house-flipping hot spot” and the Coronavirus pandemic has helped. In a recent article they discuss how real estate investors are moving away from the sunbelt to lower-price markets (like Cleveland) and scooping up homes that they turn into rentals. Their story focuses-in on one Cleveland house-flipper that sold nearly 200 renovated rental houses to investors last year. Currently, she has about 60 fix-n-flips in the pipeline along with a waiting list of individual investors that has been growing since the pandemic began.
“Greater Cleveland has been one of the most profitable places in the country to flip houses and own rentals. The typical fix-and-flip project there, as elsewhere around the Great Lakes, sells for twice what it cost. The monthly rents collected often meet the landlord’s ideal of at least 1% of the purchase price.”
“Wall Street’s growing role in what used to be the highly local rental-home business has produced national data that help investors find low house prices paired with stronger markets for leasing. Even in many places where home prices are low, like Cleveland, a mix of factors has propped up rents, including employment patterns and the state of the local housing stock.”