Why Cleveland?

#EntrepreneurOfTheWeek – Effi Danielli, #Post 5

Why Cleveland?

One of the most common questions I hear from investors (and rightfully so!) is:

“Out of all the cities in the U.S. – why Cleveland?”

Here’s the simple answer – Cleveland is a city of numbers.
And that’s what I love about real estate:
No opinions, no emotions – just data 📊

🔹 Affordable purchase prices:

While in cities like Miami, Austin, or Los Angeles, you’ll need to spend $300,000–$600,000 on a house,
In Cleveland, you can still find good homes ranging from $70,000 to $150,000.

🔹 Real double-digit returns:

A monthly cash flow of $1,200–$3,500 on an investment of $60,000–$150,000?
This is not a dream – it’s Cleveland.
Returns here range from 10% to 20% net on rentals, and 20–30% on strategies like Airbnb, medium-term rentals for medical staff, and co-living houses.
And that’s before refinancing – where you can reach returns of 30% and even infinite returns ♾.

Since I didn’t come with a lot of capital, I had to find a market that truly gives high returns.
Because in a market with 5–6% returns, where the lender’s interest rate is 7–8%,
You’re just bringing money from home.
And remember… I don’t bring money from home 🙂

🔹 A stable market with strong rental demand:

Cleveland is a city of the middle class – with universities, hospitals (Cleveland Clinic!), and a growing industry.
What does this mean in practice?
Renters are available 365 days a year.
You don’t need to chase tourists or wait for peak seasons.

🔹 A diverse and flexible market:

Looking for return?
Along with houses at $60,000 that rent for $1,300,
There are also duplexes and better-quality homes at $100,000–$150,000
That rent for $2,000–$2,500.
The diamond in the crown – the Section 8 program (U.S. public housing):
I always thought the U.S. was a capitalist country… well, I was wrong 😅
Nothing beats U.S. public housing – we should have such a system in Israel.
Under this program, the government (Uncle Sam) pays rent directly to the property owner.
And just like any average American – it’s as punctual as a Swiss clock ⏰
✅ Rent is paid on time
✅ Stable tenants who stay for years
✅ Excellent returns with high security
Without chasing tenants, no excuses about “the aunt died” or “the cat got sick” 😉

🔹 Value appreciation and neighborhood diversification:

In recent years, home prices have increased by tens of percent – and they’re still climbing 🚀
There are middle-class neighborhoods with high yields,
And there are quality areas suited for short-term rentals –
Such as Airbnb and medical staff rentals, which generate very high income.
And if you’re asking – yes,
In Cleveland, you can also avoid leaving money in the walls after refinancing 😉
With such high yields, you can recover the entire investment,
And still enjoy monthly cash flow and value appreciation.

🔹 A supportive community of investors and professionals:

Today, I have a local team of real estate agents, contractors, inspectors, lenders,
and “Boots on the Ground” – local people who are walking the ground for me,
while I sit here in Israel ☕
They know exactly what I’m looking for,
And that’s what makes the entire process efficient, professional – and most importantly, profitable 💪

💥 Myth #3: “You can’t invest remotely – you need to be there physically.”

The truth? I thought so too.
Until the first time I signed a property purchase contract – from Israel.
Without seeing the property. Without flying. Without being on the construction site.
Just me, a laptop, and Zoom with the appraiser and contractor 😎

The secret is not being everywhere – it’s knowing who to work with.
In the U.S., there’s an army of professionals:
Real estate agents, contractors, inspectors, property managers, “Boots on the Ground,” appraisers, attorneys, lenders –
And each of them can be your eyes and ears on the ground.
When they’re professional and reliable,
You can invest in any city as if you live there.

We even manage our properties remotely,
Save on management costs,
And keep full control 💻
Myth? Busted! 💥

🧭 Golden Tip for Beginners:

Don’t start by looking for properties – start by finding your team.
A good property without good people is chaos.
But with the right team – even a mediocre deal can turn to gold. ✨