AT 20/20 REAL ESTATE, WE SUPPLY CLEVELAND AND AKRON TURNKEY PROPERTIES IN THE THREE BROAD DEMOGRAPIC LEVELS:
Class A investment properties typically range in price between $100,000 and $175,000 and are located in suburbs where the neighborhoods are predominantly owner occupants and are in better school districts.
Class B turnkey rental properties typically range in price between $50,000 and $100,000 and are located in suburbs where the neighborhoods are a mixture of tenants and owner occupants.
Class C real estate investment properties typically range in price between $30,000 and $50,000 and are located in suburbs where the neighborhoods are predominantly tenant occupiers in subsidized housing.
CLASS A RENTAL PROPERTIES
Location: Suburbs where the neighborhoods are predominantly owner occupants and are in better school districts.
Property Values: Typically range between $100,000 and $175,000.
Monthly Rents & Cap Rates: Rents range from $1,200 to $2,000. Cap rates typically range between 8-10%, with higher cash on cash return when leverage is applied.
Refurbishments: Finishes are of a higher quality to suit the occupant level and demographic.
Tenant Pool: Tenants in these residential investment properties are often upper middle-class families with above average income. Class A tenants tend to be very stable, non-transient and tenancies are often renewed over many years.
Financing: Lenders currently offer financing on most Class A assets.
Exit Strategy: These tenants can qualify for mortgages and thus be converted to end-buyers. Lease option strategies are also popular and such arrangements present a mutually beneficial strategy for both parties. Alternatively, upon turnover, Class A assets can be prepared for retail sale and so achieve top market sale prices.
CLASS B RENTAL PROPERTIES
Location: Suburbs where neighborhoods are a mixture of tenants and owner occupants.
Property Values: Typically range between $50,000 and $100,000.
Monthly Rents & Cap Rates: Rents range from $850 to $1,200. Cap rates typically range between 10-12%.
Refurbishments: The value added work and finishes are of a high quality rental grade. We systematically use the popular paint color, carpets, flooring, finishes, etc on all Class B assets, which helps to attract good tenants and fast tenant placement.
Tenant Pool: Often lower middle-class income level families. Occupants are non-transient, where tenancies average 3+/- years. Tenants in these turnkey rental properties are often middle-class families with average income levels. Class B tenants tend to be non-transient.
Financing: Investment property in the $50,000 to $75,000 bracket are typically cash acquisitions. However, asset-based lenders exist and a purchase of 3 or more of these properties will usually qualify for financing. Class B real estate investment properties which are priced in the $75,000 to $100,000 bracket will usually qualify for conventional financing.
Exit Strategy: Class B assets are investor favorites due to their location in solid neighborhoods and the relatively high local rents that they command. By the very nature of their performance, these assets will continue to be popular and the rental returns can attract other investors at market prevailing cap rates in years to come. Also, as lending guidelines continue to loosen, this tenant base may also convert to first time buyers, as a mutually beneficial exit strategy.
Lease option strategies can apply.
CLASS C RENTAL PROPERTIES
Location: Neighborhoods which are made up predominantly of tenant occupiers.
Property Values: Typically range between $30,000 and $50,000.
Monthly Rents & Cap Rates: Rents range from $650 to $950. Cap rates typically range between 12-14%.
Refurbishments: Mechanicals and major items are typically addressed. Finishes are of lower quality rental grade – enough to pass a section 8 government housing inspection.
Tenant Pool: Tenants in these rental investment properties a often low income and government subsidized.
Financing: N/A. Cash only.
Exit Strategy: Class C assets typically offer the lowest entry price and can offer the highest cap rates, if managed properly. As such, they can attract investors at market prevailing cap rates in the future.
OUR FEATURED COMMUNITIES
Cleveland Heights, Ohio (located on Cleveland’s East Side) stands out as a community looking to enhance the lives of their residents.
According to BestPlaces.net, the median cost of a home in Cleveland Heights is $103, 900. This places them on the low end of our “Class A” demographic level assessment.
Known for its artistic and cultural flare, the City of Cleveland Heights literally wraps around Cain Park which offers numerous concerts and theatrical events throughout the summer months at two park venues – Evans Amphitheater and Alma Theater. Both settings provide under-cover seating while Evans Amphitheater, the larger of the two, provides open-air seating as well.
The original vision for Cain Park’s theater program came from Dr. Dina Rees Evans and Mayor Frank Cain in the mid-nineteen thirties, and happened somewhat by accident…while working on an outdoor presentation of A Midsummer Night’s Dream.
“Doc” Evans, as she was called, was granted permission to stage the event at the base of a sledding hill between Taylor and Superior Roads. In a hurry to identify the location of the performance for others, “Doc” called it “Cain Park” after then Mayor Cain, who did not object to the idea.
In addition, Cain Park also offers 22 acres of running and cycling paths, basketball and tennis courts, a skate park, a playground, picnic tables and covered pavilions.
You can read all about the history of Cain Park.
Bedford Heights, Ohio (located on Cleveland’s East Side) is on a mission to recruit strong families and businesses to their community. This focus is so woven into the DNA of the city that their motto reads – City of Bedford Heights, “Best Location for Relocation.”
According to BestPlaces.net, the median cost of a home in Bedford Heights is $102, 100.
This places them on the low end of our “Class A” demographic level assessment.
While the City of Bedford Heights attracts many residents from diverse backgrounds with tremendous talent, you may be surprised to learn those individuals of “celebrity” fame whom have called this East Side Cleveland city home.
The Bedford Heights’ municipal website provides a list of these famous people and what their contributions have been to our society.
In Music: Musician Charles “Cow Cow Davenport (1956-1984) is buried in Evergreen Cemetery on Northfield Road. He is thought to have contributed to the Boogie-Woogie Movement and is best known for his song, “Cow Cow Blues.”
In Science: U.S. Astronaut Dr. Mary Ellen Weber graduated from Bedford High School in 1980. She has logged 450 plus hours in space.
In Communications: TV News Anchorman Dale Solly grew up on Holly Road. He was a major network anchorman and also covered numerous Homeland Security assignments.
In Hollywood: Movie Actress Halle Berry graduated from Bedford High School in 1984. She is an Academy, Emmy and Golden Globe Awards winner and has many other accomplishments to her name.
Maple Heights, Ohio (located on Cleveland’s East Side) is committed to improving inner-city education for their students. This is reflected in the quality of teachers they hire.
According to BestPlaces.net, the median cost of a home in Maple Heights is $51,600.
This places them on the low end of our “Class B” demographic level assessment.
Meet Maria Rodgers – a math teacher at Milkovish Middle School in Maple Heights and Ohio’s sole recipient of the 2017-18 Milken Award.
For those unfamiliar, the Milken Educator Awards is what Teacher magazine describes, “The Oscars of Teaching!”
‘”Maria Rodgers has so much of what makes an effective, highly valuable teacher: inventiveness, a talent for making learning fun, the professional range to teach many kinds of students, and leadership skills that promote high performance and community engagement in her school and district,”‘ Ohio Superintendent of Public Instruction, Paolo DeMaria, shared during the all-school assembly award presentation. ‘”Maria is a great example of what can happen when we give teachers the opportunities and conditions they need to succeed.”‘
Maple Heights and Milkovish Middle School are fortunate to have teachers like Maria Rodgers who care about making a difference in the lives of young people within their community. Hopefully their example will inspire others to reach out and do the same.
You can read more about Maria Rodger’s story https://patch.com/ohio/cleveland/maple-heights-teacher-maria-rodgers-earns-25-000-milken-award.
Warrensville Heights, Ohio – Business BOOM Benefits Local Residents
Warrensville Heights, Ohio (located on Cleveland’s East Side) is putting the “B” in business with a BOOM of new companies to their city.
According to BestPlaces.net, the median cost of a home in Warrensville Heights is $65,000.
This places them on the low end of our “Class B” demographic level assessment.
As Warrensville Heights Mayor, Bradley Sellers, shared on the “State of the City Business Update and Celebration” event kickoff video last November, there is corporate money coming to Warrensville Heights!
Mayor Sellers went on to explain that with businesses the likes of: Heinen’s Grocery Store, Carvana, W.F. Hann & Sons, WindowNation, Furguson and Studio 33 all coming to the city, there is little doubt that the future of Warrensville Height’s economy looks bright.
This should come as welcomed news for the residents of Warrensville Heights who will be the beneficiaries of this new growth. Not only will this economic business expansion lead to more tax revenue for the city but also new job opportunities for those living in the area.
Such an increase in city revenue will further enhance the lives of Warrensville Heights residents by enabling the city to improve services as well as local roads and infrastructure. Such improvements may also serve to further attract new businesses to Warrensville Heights and fuel future growth and development of the city.
To watch the entire video and hear all of what Mayor, Bradley Sellers, along with others, had to say please go http://whacc.org/video-good-news-from-the-tri-cities/.