Cleveland is the second largest city in Ohio, second only to the capital of Columbus. It has a population of about half a million people within city limits, but the greater Cleveland area is home to about three million. Cleveland is in a temperate climate that sees cold snowy winters and warm summers.

Looking to Buy a Home in Cleveland

Cleveland's economy is far behind the rest of the nation. Average family income in Cleveland is about half that of the national average, and the city has been hit particularly hard by the recent slowdown in the economy. The average Cleveland home costs about $111,000--well below the national average, and there is little appreciation value on Cleveland homes.

Cleveland is a diverse city, with its population being about evenly split between Caucasians and African Americans. Latinos make up another small segment of the population, but overall there is a black majority. While HUD provides incentives for minority homeowners, these incentives may not be as aggressive as in other cities.

Still, for those willing to take a risk on an investment, Cleveland has a lot to offer. The low cost of homes is inviting, and the 2000 census found over 25,000 vacant housing units in the city. The price for a HUD home is between $24,000 and $56,000 at present--but all listed homes show water damage or mold. If investing in a damaged property, make sure to get an accurate quote for repairs before applying for your mortgage.