Nashville or Toledo?

Question

Hello, I'm a newbie wanting to buy my first, multi-family, investment property. I am deciding between Nashville and Toledo as I have connections in both cities. I am drawn to Nashville as it's a booming city with many opportunities. The value of property has skyrocketed over the past decade. However, houses are becoming increasingly scarce and expensive.

Toledo, on the other hand, has fewer opportunities than Nashville. People aren't moving there like they are moving to Nashville (thousands of people move to Nashville every month.) The price of property doesn't appreciate like it does in Nashville. However, there is more inventory and it is much, much cheaper to buy in Toledo than it is in Nashville.

Is appreciation a better factor in making the decision to buy an investment property? Or is it cash flow?

I'd love the opinions of people who are more experienced than me, to help me make this decision. Or at least to point me in the right direction in how to get the information to make the wisest decision.

Which would you invest in?

thank you!!

Jackelyn Lee · Answer

I look for steady appreciation but I’m also not too concerned with it as long as it cash flows. I’d be happy 10 years down the road getting back what I paid - since I had years of positive cash flow.

Nashville is awesome and definitely booming - but going to be quicker to scale in Toledo with the cost of properties in my opinion. It all depends what your long term goals are. For me it’s the passive income. But I have sold properties a year or two later and made good returns in Toledo market…

Feel free to reach out directly if you need any other Toledo connections.

Mike Mocek · Answer

Hello @Tina Gionis You brought up some very valid points about Toledo and Nashville.  I personally, do not have experience in Nashville, but I do with Toledo. I invest in Cleveland, Akron and Tampa and to be honest, Akron (Secondary Market) is my best performing portfolio with a positive cash flow.  Not every month is perfect, like any market, but the cost of the properties are a bit lower which gives you a better return.

But when you start talking about Toledo properties you will discover that the Toledo market is different from all others, not to mention, lower than average purchase prices on fixer uppers as compared to their retail value, Toledo can be full of promises.  The need for quality residential and commercial space has become astonishing, making the right investment in Toledo, sometimes not easy, with so many different projects to choose from.  Whether it is a Single-Family home, Multi-Family homes, mixed use or any other type of property, with such a high demand in Toledo, it rarely stays on the market for a great length of time.

Some reasons why so many people are flocking to invest in this cosmopolitan community would be:

-  Low inflation

-  One of the safest cities in Ohio

-  Low cost of living

-  Growing metropolitan

Toledo Investment Properties provide investors with a unique comprehensive platform that makes Toledo a logical place to invest in.  The area is always expanding the business district as well as downtown, from Access to low cost regional talent, competitive real estate cost, strong work ethics and excellent facilities for sports, shopping, leisure and healthcare.  All-In-All, Toledo Means Business!

I just had a luncheon with the Women's Council of Realtors (Toledo Chapter) and the Mayor of Toledo and the amount of time and money that is going into the infrastructure of Toledo is outstanding!  I would be happy to share more information with you, and anyone, to discuss our city and where we are going.  The 90s and early 2000s hurt Toledo, we were not ready for population growth and people vacated the city.  With what the city has accomplished in the past 4 years and where we are going in the upcoming years, I suspect the population curve to change (It already is).

Justin Vogelgesang · Answer

@Tina Gionis the Nashville market is growing rapidly for sure, but that's also spreading to the surrounding cities. In the neighboring areas, you can find deals that will benefit from the growth, so you get the appreciation in the long term. While you also get a better RTV ratio since the prices are more affordable in these other pockets as well. Feel free to reach out if you have any questions or if you're looking for some guidance

Account Closed · Answer

I built a portfolio in Toledo and now Im addicted to the high returns, have no interest buying in sub 1% markets.

Tina Gionis · Answer

i don't even know what a sub 1% is. Thank you @Michael P for making me aware of it and ultimately educating myself on it!

Ashley Yoviene · Answer

I like the idea of investing in Nashville, however as a newbie it might make more sense to start in Toledo.  While properties won't appreciate nearly as fast as they have in Nashville, cash flow is probably strong.  I invest in Buffalo (where I have connections) but would love to invest where I live in Vermont.  However as a new investor myself I did not have the funds to invest in a more expensive/competitive area.  I think of Buffalo as a place to get my feet wet at a lower cost of entry.  Then once you build a portfolio in Toledo, it will make it easier to get into higher appreciating markets.

Michael Sargent · Answer

There are a handful of smaller towns within an hour of Nashville that have 1% properties that will ultimately benefit from Middle Tennessee's rapid growth. Completely unfamiliar with Toledo's market but I personally wouldn't invest anywhere that I didn't see population growth, job growth, etc.

Tina Gionis · Answer

Thank you everybody so much for your input. @Ashley Yoviene what you say, intuitively makes sense to me. though I'd rather invest in Nashville, because of appreciation and growth, it's going to take WAY more money esp in today's market. and not everyone is trying to buy in Toledo like they are in Nashville right now so it's a lot less less intimidating for a newbie like me! I wish I had enough capital to invest in both but don't we all wish we had more capital....

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