I work in finance, and some of my acquaintances/family members and I have been sitting on some cash lately, and if I have my way it's not going to come near the stock market again.

 

I've been running the numbers on purchasing two or three foreclosures, rehabbing them and becoming a vanilla landlord right around the Waterloo Arts District in the "model block." I have family in the renovation business who has been giving me favorable cost estimates using leftover construction materials from other jobs that seem to make the numbers work.

 

Opinions of landlording in general aside (personally I think that home ownership is a correlation but not a causation of an improving neighborhood but that's not the debate here), I've administered a rental property before and I'm aware of the standard "pitfalls." What I'm looking for are reasons not to do this in North Collinwood, specifically around Waterloo.

 

I spoke to the Northeast Shores CDC and they gave me some useful information about incentive grants and loans, although it appears that they're not very landlord-friendly. Honestly, though, it really seems like it's darn near impossible to find an available rental anywhere there between 90 and the lake. Seems odd to me, since everyone keeps calling the area "up-and-coming."

 

I have never lived in North Collinwood, although many moons ago my father grew up there on E. 152nd. I know the area, I have spent a lot of time up there, but I don't know what it's like to *live* there. Currently I live in Cleveland Heights, where the properties are out of my price range. I would like to move to whatever neighborhood in which I purchase property but I'm still skeptical of the living conditions up there. If I didn't want to live up there, who's going to rent from me?

 

Throw me all the constructive criticism you can think of. With money down and city rehabbing loans I have enough capital to offer some pretty nice apartments. Northeast Shores seemed to imply that there is significant demand for rentals, but there's no supply. Seems like there's something strange going on up there. This area could be a fantastic investment, and the numbers do not belie a "lose your shirt" scenario especially due to the popularity of the nefarious FHA loan and lots of willing buyers (not my desired endgame but a possible stoploss). Do you have any insight to offer me?

 

One of my best friends lived on Lucknow for 2 years recently, and then on E. 170th for a year after that.  The neighborhood looks rougher than it is, but it is not a cupcake either.  I'd try to be as far east as possible towards 185th, but you will find decent pockets here and there around 152nd and 156th, north of the highway.  I'd judge the property by the street and how the neighbors care for there property as that really can vary from street to street down there.  The less duplexes the better IMO.