101352 . 184 Home SFR Cleveland, OH

Contact: TOM JOHNSTON Managing Director | Designated Broker SVN | SFRhub Marketplace T: 602.441.5354 C: 602.403.3695 [email protected] License #: BR507919000 BOR: SVN | First Place Commercial Realty LLC Victor S. Voinovich, Sr License #: 264083 SVN | SFRhub Marketplace is excited to offer a collection of 184 rental homes to qualified investors in Cleveland, OH. This distinctive SFR portfolio primarily features Section 8 homes that are notably under-rented. Comprising 80 single-family homes, 18 duplexes (36 units), several 4-plexes, and 5 multi-family properties with 5 to 8 units each, these homes range from 653 to 3,806 square feet, averaging at 1,084 square feet. Built between 1870 and 2002, with an average vintage of 1916, the portfolio includes two 1-bedroom homes, seventy-eight 2-bedroom homes, ninety-five 3-bedroom homes, eight 4-bedroom homes, and one 5-bedroom home, all currently fully leased to thoroughly vetted tenants. Many of these homes have been under the seller’s ownership for decades and have been meticulously maintained for rental purposes. All properties have undergone capital improvements, with over one-third completely renovated within the last 20 years, over 20% significantly upgraded in the past 25 years, and the rest benefiting from cosmetic enhancements such as paint and carpet. Tenants residing in homes with cosmetic upgrades have been in place since the seller’s ownership. Despite an average monthly market rent of $1,012, this portfolio is currently 10% under-rented, with current average rents at $909 per month per home. According to John Burns Real Estate Consulting (“JBRC”), Cleveland rents saw a 2.9% growth in 2023, with a projected 9% increase in the coming years. Home values in the area also rose by 7.6% in 2023, and JBRC forecasts a 9.2% increase through 2026. At an average price of $65,217 per home, this amounts to one-third of Cleveland’s median home price of $194,000, as per JBRC data. Cleveland holds the top spot, according to Lima One, a leading lender in the SFR asset class, as the #1 market for SFR investors aiming to maximize cash flow. With a Price to Rent ratio of 7.6 (meaning a property priced at $91,000 for every $1,000 of monthly rent, or $12,000 annually), Cleveland surpasses Birmingham, AL (8.4) and Dayton, OH (9.3) in this ranking. For potential buyers, there exists a substantial opportunity to reduce costs and increase rents. An experienced investor could achieve efficiencies and cost reductions by engaging a professional management firm, as the seller has self-managed this portfolio with a small team for years. Given that 75% of the homes are government subsidized, investors familiar with Section 8 housing stand to benefit significantly. Many tenants currently occupy homes larger than their voucher qualifications, presenting a chance to optimize returns. For instance, a tenant with a one-room voucher may be residing in a 3-bedroom home at the single voucher rate. Additionally, transferring utility expenses to tenants could enhance Net Operating Income (NOI), as the seller has historically covered the majority of these costs. This opportunity is ideal for an investor well-versed in Section 8 housing, skilled in expense optimization, capable of raising rents upon lease renewals, and who acknowledges the fundamentally strong real estate market in Cleveland.