CA resident looking to flip in Toledo, Ohio
Member since 2019 · 5 posts · 3 votes
CA resident looking to flip in Toledo, Ohio
Most Popular Reply
Rental Property Investor · Toledo, OH · Member since 2019 · 115 posts · 72 votes
7y@Andrea Tavake
I live in Toledo and I'm a wimp that won't go near 43608, 43609, 43605. Some that have decent value that many look at are 43613, 43612, 43614. But I'd say even then, the zip codes aren't perfect indicators as one block could be good and the next not so great. If you can find anything with Washington Local Schools, that's a little better than Toledo Public but has similarly low taxes, so good value. There are other good school districts all around the suburbs but also have correlating higher taxes.
Toledo seems to be popular with California investors but I don't know if it's all that special - affordable Midwest mid-size metropolitan area with some industry surrounding it. Some people have success everywhere including 43609 but it requires being able to 100% take your hands off and have superstar property management with thick skin capable of following through with evictions. All around, be very conservative with your estimates. Calculate with higher vacancy than you'd think (I'd guess 12%+). High PM fees (12%+). If that's what you're good at, go for it. I always say stick with your "why" and properties that you'll enjoy even if it means smaller margins but that's just me.
12 Replies
- Rental Property Investor · Toledo, OH · Member since 2019 · 115 posts · 72 votes7y
@Andrea Tavake
I live in Toledo and I'm a wimp that won't go near 43608, 43609, 43605. Some that have decent value that many look at are 43613, 43612, 43614. But I'd say even then, the zip codes aren't perfect indicators as one block could be good and the next not so great. If you can find anything with Washington Local Schools, that's a little better than Toledo Public but has similarly low taxes, so good value. There are other good school districts all around the suburbs but also have correlating higher taxes.
Toledo seems to be popular with California investors but I don't know if it's all that special - affordable Midwest mid-size metropolitan area with some industry surrounding it. Some people have success everywhere including 43609 but it requires being able to 100% take your hands off and have superstar property management with thick skin capable of following through with evictions. All around, be very conservative with your estimates. Calculate with higher vacancy than you'd think (I'd guess 12%+). High PM fees (12%+). If that's what you're good at, go for it. I always say stick with your "why" and properties that you'll enjoy even if it means smaller margins but that's just me.
- SF Bay Area · Member since 2018 · 3 posts · 1 vote7y
i live in Emeryville and own there. Let's talk!
- Rental Property Investor · San Jose, CA · Member since 2016 · 54 posts · 31 votes7y
@Andrea Tavake I live in San Jose and own several properties in Toledo. @Daniel Kramer has given some good insights. I'm focused in on 43612, 43613, Washington Local Schools. In the future I will add in some 43623 and Franklin Park. @Karla Parker good to see a few folks from the Bay investing in Toledo.
- Member since 2019 · 14 posts · 4 votes7y
New to BP, and just starting out as an investor. I too am from California and I'm beginning to explore the option of investing out of state. I'm trying to decide on what states/ cities I should begin to point my focus towards. I am looking for multi-family/ cash flow properties. Is Toledo more conducive to flipping or is this an area with good cap rates and price-to-rent ratio? I've heard Detroit, Orlando, Arlington and many others. Any advice or pointers are welcome. T
- Rental Property Investor · Detroit, MI · Member since 2018 · 39 posts · 34 votes7y
If you need some Detroit insight I can help.
Detroit has been a hotbed for out of state/country investors with low entry points, good ROI, and possible appreciation. I focus on B/C class homes typically spend 45k-60k for a home with a ROI in the range of 12%-16% for single family, closer to 9%-13% on multifamily. Detroit is on a street by street basis do not make the mistake of looking into only a zip code or specific neighborhood. You need feet on the ground to ensure you are buying in a revitalizing area. Lots of money coming back into the city and the $1 homes are a thing of the past in good locations.
If you come to this market out of state/country look into building your team. You can choose to go with a turnkey provider and pay a premium, or you can make contacts and manage the operation. It will depend on how hands on you need to be. There are quite a few contacts on BP that will be able to help.
- San Francisco, CA · Member since 2015 · 5 posts · 5 votes7y
I'm originally from Toledo, but live in San Francisco now. We're searching for our first property in the Bay Area, but the thought of continuing to rent out here while pursuing out-of-state investment (likely somewhere familiar in the Midwest) has definitely come up more than once.
Best wishes, and feel free to reach out if you have any questions about the area. I grew up in West Toledo (Washington Local schools) and own a SFH in South Toledo (43614), near Maumee.
- Member since 2019 · 5 posts · 3 votes7y
@Randall Joseph I’m actually looking to relocate there. Born and Raised in the Bay Area and it’s so expensive and flipping is what I would like to do full time but just can’t here. Do you know if it’s worth it to buy a cheap house say in the 43609 and sell for a profit? I have been getting a lot of mixed reviews, and just trying to learn as much as possible about the current market.
- San Francisco, CA · Member since 2015 · 5 posts · 5 votes7y
IMHO, 43609 is not a particularly desirable zip code for flipping. You may be seeing some great buy-side deals because that area is economically depressed, but I think that you might struggle on the sell-side finding buyers at the right price point, post-remodel. That being said, there might be some pockets of 43609 that are an exception, for example, very close to the Toledo Zoo.
I'll second the comment from @Daniel Kramer about Washington Local Schools; being a separate school district but still within the city, this area seems to hold its value fairly well. There are also some neighborhoods adjacent to nicer suburbs -- like South Toledo near Maumee, or West Toledo near Sylvania -- that benefit from proximity to those areas.
Best wishes on your endeavor! I have to admit, part of me is a little jealous given how frustrating it's been looking for opportunities in the Bay Area where high prices can be prohibitive; I think you'll definitely have greater flexibility getting started in the Midwest.
- 7yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Andrea Tavake:
Im new to this forum, found it while looking for information about flipping in Toledo, Ohio. I want to stat flipping but it is impossible at the moment for me in the Bay Area. I have been looking at a few houses in Toledo, Ohio. How’s the market and how is Dunham St in the 43609?
Hi Andrea,
It's me again, your favorite Australian lol
Your posts come at a good time as I'm in between my travels so I can post about the Toledo market in more depth.
Usually, I have to cut my replies short to only a few sentences due to other commitments.
Once again, you received some solid replies from the other folks.
It's amazing to see how much activity Toledo has been getting over the last few years.
When we first started our company here everyone laughed at us.
"Toledo, where is that? Isn't that close to Detroit?" lol
Times sure do change and Detroit is booming now and Toledo has been doing very well also.
I like to take pride in saying that our companies endeavors have played a part in "putting Toledo on the map" when it comes to investing and I can also see many local folks following in our footsteps :)
The market is super expensive everywhere else so now folks are coming to the Midwest.
This does raise some concern about maybe being at the peak of the market cycle so it wouldn't be a bad idea to have some dry powder (cash) ready to go.
With that said, here is a quick break down of zip codes that we have been active in since we started:
43606 (East of ProMedica and not much further out. West of ProMedica tends to be higher priced.
43607 (East of Toledo University and only some South of Dorr. We will also look at Further East in between Dorr and Hill)
43609 (I actually did a screenshot outline for you in the other thread you started)
43611 (Point Place only)
43612 (Pretty much the entire zip codes)
43613
43615
43623
I'd say the above zip codes are our "bread and butter".
I've always said that there is nothing wrong with any piece of real estate as long as the price is right so we will look at deals everywhere.
The Historic District is also decent and slowly gentrifying even tho I'm currently loosing my A$$ on a 6 unit there right now lol
As I mentioned in the other thread, it's vital that you have the right team in place first before you choose where and what you want to buy.
Business is easy, it's the wrong people that will make it difficult.
I wish you much success with your endeavors.
- 7yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Andrea Tavake:
@Randall Joseph I’m actually looking to relocate there. Born and Raised in the Bay Area and it’s so expensive and flipping is what I would like to do full time but just can’t here. Do you know if it’s worth it to buy a cheap house say in the 43609 and sell for a profit? I have been getting a lot of mixed reviews, and just trying to learn as much as possible about the current market.
My fedora is off Andrea if you do indeed make the move here.
I did in 2013 and unofficially retired in 2018.
It's a huge sacrifice and "leap of faith" but if you REALLY want to get the deals
You have to be on the ground and grinding it out daily.
Thanks
ps. It's worth buying a house anywhere and flipping for a profit lol
As long as you make a profit.
Start slow and small and learn from your mistakes.
You will make many
Trust me lol
- Real Estate Agent · Toledo, OH · Member since 2019 · 88 posts · 38 votes7y
@Andrea Tavake
I am a licensed agent on Ohio and Michigan, with the majority of my business being in West Toledo and Sylvania. I have investors that have bought in multiple areas of NW Ohio.
I would generally say to stay away from 43609 with regards to flips, but it could be an opportunity for rentals.
Feel free to reach out to me, we could talk more about what exactly you're looking for and how to make things happen. Best wishes!
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