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Cleveland. Despite the end to a serious sports championship drought (thank you, LeBron James!), it isn’t an easy place to live.
There are aging factories, a manufacturing economy that has all but dried up, less than hospitable weather, a terrible football team, and a stubbornly high crime rate. So it’s no surprise to find the Cleveland housing market is one of the cheapest in the country, with a median list price of $125,000—less than half the current national average.
And in some pockets of the metro area, prices are even cheaper than the median—a lot cheaper. Meet the single-family home going for $3,000.
For the price of a high-quality electric guitar, a luxury handbag, or perhaps an NBA Finals ticket to see the Cavs in June, you can be a homeowner just a few blocks from the banks of Lake Erie.
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The bargain home offers a reasonable 1,511 square feet of living space on an approximately 6,500-square-foot lot. It has four bedrooms and 1.5 bathrooms. There’s also a full basement, hardwood flooring, and a two-car garage.
But as is usually the case with these ultralow-priced homes, the house is selling as is, so you’re going to have to put some elbow grease into the project.
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Why are homes in Cleveland this cheap? There are a few answers, but not one that reigns supreme. A Cleveland-area agent we spoke with, who wished to remain unnamed and isn’t associated with this listing, has a few ideas about what’s dragging down property values.
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First of all, the crime rate is high on the east side of the city, which is where this home is located.
The agent also says homes are often bought and flipped in this neighborhood. However, even after extensive renovations, the most a rehabbed property in this neighborhood could potentially sell for is around $30,000 to $40,000.
Our local source also says these cheap homes can’t pass a mandatory point-of-sale inspection, which looks for building code violations, because they have so many problems and are being sold as is.
Investors are keen to not overspend on renovations, because, as the agent puts it, this isn’t really a hot market for buyers.
“Because the comps are so low, [after a renovation] you’re automatically going to be the best house on the block,” the agent says of east Cleveland. “And a lot of people aren’t looking to purchase on 71st [Street].”
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Once all is said and done, investors stand to clear $8,000 to $10,000 profit per bargain-basement home, according to the agent.
But if you’re willing to help pioneer the resurgence of this city, then the price might be just right. And with the metro’s pro baseball and NBA teams continuing to kick butt, and some new digs by Lake Erie, who knows? You could be sitting pretty with a rockin’ bargain in Cleveland.
The post Forget NBA Finals Tickets—You Can Buy a Cleveland Home for $3K appeared first on Real Estate News & Insights | realtor.com®.
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