Success Investing in Toledo, Ohio

8 Replies

Hi,

I would love to hear from investors that have local knowledge of the single-family home rental market in Toledo, Ohio AND out of state investors who are currently investing in areas of Ohio.

What are your thoughts on buying single family rental homes in the zip code 43607 and homes in close proximity to the University of Toledo?

What class category would you consider properties in those zip codes to fall under?

Any feedback or help is much appreciated.

Thank you and have a great day :)

Hi @Brad Fletcher

43607 isn't a bad place to invest, I owned houses around there back in 2010 but never got into the whole college "salmon run" concept (you have a TON of applicants nearing the end of Spring semester and if you go vacant in November you're screwed till the following end of Spring semester).

Several BP members here specialize in that zip code, they will definitely be able to advise about that area. The university continues to build housing and there has been regular construction of apartments there so in my opinion it's getting competitive.

As a rule - there's no bad place to invest provided it makes the return you desire vs the risk you accept and you buy for a discount. I own in the North (43612/43608) and feed my family on the income...others focus on South Toledo, the East Side, Maumee...the options are endless. 

The better the neighborhood, the better the tenants, the more expensive the property, the higher the costs, the lower the net return. We have $250k houses that can be rented for $1800/mo. 100k houses for $1100/mo. $50-80k houses for $850/mo. $30-40k houses for $800. I specialize in the 43608 $20-30k house renting for $700 but see my post on beware of 43608 before you just jump in and buy a house there.

I've several properties in the better area of 43607 which I got a good around 08. Every zip code has bad and good spots and you have to due diligence to what fit your needs. It helps if you have a specific address in mind and I'll be glad to discuss in more details.

The neighborhood around UT is very spotty which depends on what side. East of Bancroft st. to Upton/parkside which is only 1-2 blocks from UT is a highly concentrated student area. You can find houses 20K-40K, however, it's high in crime.  North of UT Door st. to Hill is a little bit better with the same price range.  South of UT is called Old Orchard 60K-180K which is an appreciative market with lower cap rate. 

My most important aspect of any area is neighborhood safety.  Most of my properties are within 2-3 miles from UT within 43615.  This is my favorite area to invest. I've bought as low as 21K to the most expensive 39K.  My rentals range $900-$1,200 with a cap rate of 24%-%34.    

Thank you Andrew and Adam for such detailed information. I really appreciate it! 

I am excited about the opportunity in Toledo and it looks like there are pockets that are better than others - may be it would be worth a trip out there, I would like to avoid any high crime areas for sure. 

Overall, it appears to be a great area for investment and the vacancy rate is not too bad? My search revealed vacancy rate below 6%, not sure how accurate that is and hopefully that area will remain strong for rentals long term. 

Brad- let me know when you are planning to come out. 

I’m happy to meet with you at our office to discuss neighborhoods and options. 

If you wish we can discuss using me as your realtor...I’ve purchased more than a hundred Toledo investment properties by now. 

 I offer property management, but I only manage a few dozen so I’m picky about location and the specific properties.

Originally posted by @Brad Fletcher :

Thank you Andrew and Adam for such detailed information. I really appreciate it! 

I am excited about the opportunity in Toledo and it looks like there are pockets that are better than others - may be it would be worth a trip out there, I would like to avoid any high crime areas for sure. 

Overall, it appears to be a great area for investment and the vacancy rate is not too bad? My search revealed vacancy rate below 6%, not sure how accurate that is and hopefully that area will remain strong for rentals long term. 

 Idk much about Toledo and I am sure there are good opps there. Since you are in Denver have you ever checked Pueblo for sfr rentals? I think the vacancy rate is really low these days down there (2%?). Good luck! 

Toledo pop.

1980354,635  −7.6%
1990332,943  −6.1%
2000313,619  −5.8%
2010287,208  −8.4%
Est. 2016278,508[29]  −3.0%

Pueblo pop.

1980101,686  4.0%
199098,640  −3.0%
2000102,121  3.5%
2010106,595  4.4%
Est. 2016110,291[7]  3.5%

Hi Matt,

Thank you very much for the Toledo data! Also, thank you for the heads up on Pueblo, I will check it out. I'm sure I can get properties for less in that area vs. Denver - the prices in the Denver Metro area have skyrocketed. 

Seems like Toledo's population is slowly declining... Would that not be a red flag for a long-term-hold play?

Hey Jan, definitely something to look into further. 

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