For Sale 60K, 4-plex 3/4 leased for $1700, toledo 43610

13 Replies

Hey everybody!

23 year old trying to get started

I saw this oppurtunity to buy a 4 plex in toledo for 60k, I believe its in a rougher area but it has 3 tenants rented out for a total of $1700 a month with owner paying utilities. Id preferably live in the unfinished 4th unit, I have cash to buy it, Id be using all my savings so pressure is on. But it seems like a no-brainer. My family thinks its stupid and something is up, why would someone be selling a money machine like this? Its rough scary neighborhood, im not from the area and have never bought any property before but Im willing to get my hands dirty and eager to learn and get started. Does anyone have any advice or insight into a deal in an area like this?

Thank you!

@Ricco Pirozzoli It's not a money machine bro. That 1700 looks good but in reality paying utilities for 3 units and being in a tough area kills your cf. Atleast it would where I invest. I wouldn't do it unless I could separate utilities asap.

If you have not already do research on the area crime stats, use google maps to walk the streets to get a feel for the area.  just by the price alone I can tell that is going to be a tough property to manage.(ask yourself what type of tenant base is it going to be?) If you can't answer that, you defintly need to find out before anything.

  Even if it comes with 3 renters already have you asked to see there leases and rental payment history. Doing research on the existing renters like if they pay on time or at all and how long have they been there-not verbally from seller but actuall proof with leases and rental deposit proof into his account and the dates it was deposited.  You may be just be buying a property where the seller has put in tenants that are not qualified due to lack of experience or trying to fill up the units.

Call 3 property managers in that area and ask if that property/location is a good area if the price was right. Ask them to even drive by and take a look for you and if they could send a video or pictures, because if you do buy it you may want to use them.

The type of tenant you are going to attract for that area is how easy or hard this property will be to collect rents, manage and find qualified tenants that you feel you can deal with.

Run a sample craiglist add with a similar non existant property and pic, to see the type people who call and if any can actually meet what your standards for a good renter should be 

After all that if your still conviced that this is a good deal then actually spend the money getting on a plane and going to the property. Then you will get a good feel for the tenant base you will be getting and the building itself if its solid and looks to be in good shape or has it not been maintained and a work order nightmare.

In my rookie days of buying I bought many properties in places I shouldn't just because on paper it looked like an awesome deal without even seeing the area and with my lack of exeperice thinking that I would be able to collect rent in those areas on time and with easy( wasn't the case). I have spent the last 3 years getting rid of them and buying in better areas which I should have in the first place.

You also metioned you would live in the 4th unit? After you take a trip down there and see who the other 3 people that rent the property are like currenlty should you even then start thinking about that. 

If it was me, I would take the 60 k and use that as a deposit towards something in a much better area and get a mortage for the rest and break even or even get a little cash flow. ( but that's just me)

Then contuine to work hard at your job and then save and buy another and keep doing that.

 I would never live in a c-d class neighbourhood and move across the country and stay in the 4th unit either. For whatever you think your going to gain from doing that, it's not worth it (but that just me)

Good luck- in this game cash flow is nice but not everything!

Excuse my spelling and grammer

We can probably find you a better investment for the $60K.  I'm from the area.  We can connect if you're interested. 

We bought a 4-plex for $85K in a better area of Toledo a couple of years ago.  3 of 4 were rented, with gross income of $1305.  We renovated and have gross income at $2090 right now.  All units are rented, and even with a couple of turnovers, we have been able to re-rent at the higher rent levels.  

Is this a unit that was built (quad) as a multi family or a converted large house?

I ask because it's unusual that the landlord would pay utilities. If they aren't separately metered because this is actually originally an sfr, then I think I would keep looking as separating utilities can be very expensive and paying utilities can also be very expensive.

@Scott Ray

Hey scott, thank you for your well thought out reply and I appreciate the time you took to respond. Im actually from Cleveland and have been living in LA, (left home 4 years ago for school out here), ive always wanted to invest in real estate and Im just tired of renting and not building any equity or anything out here with my money. 4th year of living out here and my total money towards rent will now equal 60,000 dollars! Crazy to think about. Anyway thats why i was thinking about moving back home into the studio unit. Thank you.

@Christopher B.

Hey chris,

Yeah Ive been doing odd jobs out here in LA and since I was in my teens managed to save up 60k, so I don’t believe id be able to get a loan. But Id love to connect if you have to help a little bit, any amount of your help is appreciated.

@Ricco Pirozzoli   A 4plex for 60K anywhere in the United States is in a war zone. Avoid it as your first purchase. You probably will have a hard time finding a PM that will want to manage it. On paper the returns may seem great but when you peel back the onion you most likely will find the tenants have a hard time paying rent and are very difficult to deal with. 

All is not lost. If you want to buy in Toledo...look for something else on Zillow. Find out if anyone here on BP is investing SUCCESSFULLY in Toledo that will want to work with you. Find out where (generally speaking) the areas or zip codes are that are A,B,C,D and F neighborhoods. For your first investment invest in AT LEAST a C neighborhood.    Hypothetically.....a 4plex I'm guessing should be at least 170K in a C neighborhood in Toledo. Put 43K down, see if you can get at least $3,000 a month in gross rent.   

Originally posted by @Ricco Pirozzoli :

@John Teachout

Interesting, Im not too sure its an old colonial looking house, with three floors. I will have to look into that then.


If it's a large house looking structure, that answers a number of questions. This is almost for sure a converted house that was chopped up into multiple units. So it is likely that not only is are the units not completely divided utility wise, but I've found these "conversions" tend to have odd configurations such as having to go through the room that's being used as a bedroom to access the bathroom, a "kitchen" being set up in what used to be a parlor and so forth. Because the units are not well laid out, rents tend to be lower. So if you take the gross rents and start taking off the costs for electric, gas, water and sewer, trash, etc. Then your cash flow potential is going to look much different. Plus, these are typically old houses (100 years) and will have many of the issues that old houses have such as metal pipes that have corroded and prone to clogging, inadequate electrical distribution, poor or no insulation, roofs that are high above the ground and expensive to get repaired, old wooden windows that probably need reglazing or replacement and the list goes on. So keep looking, you'll find something better.

@Ricco Pirozzoli Go buy a  plane ticket and drive the area.  There are some really really tough neighborhoods in Toledo.  You don't want to buy a $60K prison cell or worse $60K coffin.  I would be cautious esp since you are going to live there.  

@Ricco Pirozzoli If I'm looking at the correct property, it is located in the Old West End.  This area has many beautiful, Victorian style homes that range from 2500-5000+ SF.  Many of them were converted to multi-unit rentals over the years.  This particular property has tenants that are all on month to month leases, which can be a pro and a con.  The vacant studio apartment appears to need a good amount of work, so that will be cash you need to find somewhere.  Any repairs on these homes typically tend to be big because of the size of the buildings.  Larger furnace and AC units required, large roofs, large foundations, etc.  I would generally recommend staying away from this area as a first time investor, it's not for the faint of heart.