Is it good idea to invest in Toledo, Ohio Area?

General Real Estate Investing
4yFollow

Is it good idea to invest in Toledo, Ohio Area?

Puneet Pal Singh
Contractor · Reston, VA · Member since 2022 · 2 posts · 8 votes

I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

6Reply
545 views

Investor-friendly agents in Toledo, OH

See the agents BiggerPockets members work with in Toledo, OH.

Most Popular Reply

Janeile Cudjoe-Myers
Toledo, OH · Member since 2018 · 22 posts · 19 votes
4y

@Bob Stevens "Depressing city"? As a Toledoan I resent that assessment. There is plenty going on here. If you want to just walk out the door and happen on a good time that's not going to occur. But there are things going on all the time for those inclined to do a little research and planning.

Downtown is going through a bit of a renaissance. It's slow but happening. There's been a lot of movement with blighted sites and commercial real estate that has been sitting vacant for decades.

There are pros (and cons) to every city - Toledo included.

10Reply
See this reply in the discussion

64 Replies

Jump to latestLatest
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y

    @my first question is what is your objecitve and what about Toledo interests you? Personally, I think there are stronger markets. Toledo has a declining population, low incomes and high poverty rate. I prefer markets like Indianapolis and Kansas City that have growing populations, growing jobs and good incomes. This is much more conducive for longer term returns. 

    7Reply
  • Jason Gillock
    New to Real Estate · Kansas City Missouri · Member since 2022 · 16 posts · 14 votes
    4y

    @Mike D'Arrigo has it exactly right. You don't want to invest in a declining market.

    Focus on strong ones like KC, Indy, etc. IF incomes are decreasing, property values and rents will soon follow.

    2Reply
  • Jackelyn Lee
    Property Manager · Toledo, OH · Member since 2021 · 58 posts · 92 votes
    4y
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

    I live, invest, and manage here. It’s been great for us, but depends what your goals are and what you’re trying to accomplish. 
    3Reply
  • Puneet Pal Singh
    OP
    Contractor · Reston, VA · Member since 2022 · 2 posts · 8 votes
    4y

    The reason I choose toledo and ohio area because properties are cheaper and it has higher return on Investment.

    2Reply
  • Eric GoldmanBusiness Member
    Lender · PA · Member since 2019 · 359 posts · 192 votes
    4y

    I have alot of clients that invest in Toledo and other cities in Ohio! smaller purchase prices, easier to scoop up a bunch to create a nice portfolio. 

    484-574-4878
    G2loans- Investor and Commercial Mortgages531 Reviews
    WebsiteView Page
    3Reply
  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    4y

    Every metropolitan area is going to have excellent, good, poor and terrible investments regardless of any macroeconomic factors.  

    I lived in the Toledo Ohio area for seven years and have been back on annual visits since leaving the area.  I would not attempt to invest there without intimate knowledge of its neighborhoods and school districts and nearby suburban areas in both Ohio and Michigan.  A $40,000 home may sound cheap where you live but could easily turn into a money pit causing you to lose twice that amount of money if you are not careful.  Without doing your homework, you are pretty much guaranteed to lose money.        

    7Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    4y
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

    Only if you want a decent ROI, but do not expect any appreciation , Cleveland is a much better overall market. They have seen increases of double and triple or more . Still able to get 10% net caps based on cash purchases , Its all about your team .

    Good Luck 

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    4y
    Quote from @Puneet Pal Singh:

    The reason I choose toledo and ohio area because properties are cheaper and it has higher return on Investment.


     But its a very depressing city, nothing going on. Cleveland has been the number 1 rental market in America for about 10 years, PLUS high appreciation . Still able to get 10% ++ net caps, 

    0Reply
  • Janeile Cudjoe-Myers
    Toledo, OH · Member since 2018 · 22 posts · 19 votes
    4y

    @Bob Stevens "Depressing city"? As a Toledoan I resent that assessment. There is plenty going on here. If you want to just walk out the door and happen on a good time that's not going to occur. But there are things going on all the time for those inclined to do a little research and planning.

    Downtown is going through a bit of a renaissance. It's slow but happening. There's been a lot of movement with blighted sites and commercial real estate that has been sitting vacant for decades.

    There are pros (and cons) to every city - Toledo included.

    10Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    @Bob S. 10 caps? When i look at cleveland properties run numbers on average of $220k for a 2 unit that rents $1800-2000 range. Unless you aren't counting cap/ex/vacancy/etc. thats far from a 10 cap. The 5+ deals look better but still not anywhere near 10 caps. 

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?


    I always recommend the major cities in Ohio:

    -Columbus, great for appreciation, pp is a bit higher around $220k for multifamily https://learn.roofstock.com/bl...

    -Cincinnati, has a mix of cash flow and appreciation, average multifamily around $180k. https://www.noradarealestate.c...

    -Cleveland, has a lot of cashflow potential, average multiform around $140k. https://learn.roofstock.com/bl...

    There are other smaller markets like Dayton, Akron, and and Newark, which we are starting to see these areas boom due to huge investors and corporations like Intel choosing to set up shop in these kind of areas.

    3Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    4y
    Quote from @Henry Lazerow:

    @Bob S. 10 caps? When i look at cleveland properties run numbers on average of $220k for a 2 unit that rents $1800-2000 range. Unless you aren't counting cap/ex/vacancy/etc. thats far from a 10 cap. The 5+ deals look better but still not anywhere near 10 caps. 

     Hi not sure where you are looking, ( maybe Ohio City , or Tremont, that boat has sailed, should have bought there 7- 10 years ago for 40k, )  but you are looking in the incorrect locations 220K for a 2 UNIT heck no.  For 220k you can get a 5 unit . I just sold my 6 unit for 190k, with 48k gross, netting about 30k 

     Just in the last couple weeks I locked up and also picked up SF all in 60k with 1200 in rent, 10 unit, all in pricing about 370k, gross will be about 90k, with net about 55- 60k, 4 br all in 55k 1200 in rent , I can go on and on. But my best is our 80 unit all in 750k, grossing about 500k, netting about 290k,,, We are now turning down 3 mill :) 

    All the best 

     Net caps used to be 25- 30% now 10% net as pricing has more then doubled or tripled, 

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    4y
    Quote from @Puneet Pal Singh:

    The reason I choose toledo and ohio area because properties are cheaper and it has higher return on Investment.


     Cleveland markets are much much better overall. If Toledo was great we would have been doing business there the last 10 years, 

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    @Bob S. apologies meant Columbus not cleveland. Haha mixup.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?


     Yes, it is great for cash flow 

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    2Reply
  • Erin AzarPro Member
    Rental Property Investor · IN · Member since 2021 · 49 posts · 36 votes
    4y
    Quote from @Darius Ogloza:

    Every metropolitan area is going to have excellent, good, poor and terrible investments regardless of any macroeconomic factors.  

    I lived in the Toledo Ohio area for seven years and have been back on annual visits since leaving the area.  I would not attempt to invest there without intimate knowledge of its neighborhoods and school districts and nearby suburban areas in both Ohio and Michigan.  A $40,000 home may sound cheap where you live but could easily turn into a money pit causing you to lose twice that amount of money if you are not careful.  Without doing your homework, you are pretty much guaranteed to lose money.    


    Completely agree. Some of the 'Midwest cheap homes' allure is tempting, but as an investor in the Midwest, you truly need to do deep research on the area, schools, etc. There are declining areas with poor rental history and there are gems. Toledo has a real mix. Suggest a visit, coupled with deep research for an out of town investor. Otherwise, I may stay in more generally growing Midwest cities (i.e. Columbus), rather than Toledo.

    2Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    4y
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

    Hello!  I sent you a PM but also wanted to send a message here! Toledo is a very unique market, you’re going to find that we are different from all others, not to mention, extremely low purchase prices on fixer-uppers as compared to their retail value. The need for quality residential and commercial space has become astonishing, making the right investment in Toledo is sometimes not easy with so many different projects to choose from. Whether it is Single-Family homes, Multi-Family homes, mixed-use, or any other type of property, with such high demand in Toledo, it rarely stays on the market for a great length of time.

    Some reasons why so many investors are talking about investing here include:

    - Low inflation
    - One of the safest cities in Ohio
    - Low cost of living
    - Growing metropolitan

    Toledo Investment Properties are providing investors with a uniquely 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 costs, strong work ethics, and excellent facilities for sports, shopping, leisure, and healthcare.

    Just like every city, you will have a fair balance of A neighborhoods and D neighborhoods.

    5Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    4y

    You will find properties cheaper than the Cleveland area but you won't find the same appreciation as Cleveland. I own 12 units in Cleveland and would love to connect and chat real estate. Feel free to reach out.

    0Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    4y
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

     You are new to the forums, so be careful taking advice from people with low Vote to Post ratios (under a value of 1).

    Excellent ratio @Darius Ogloza 1.2 @Mike Mocek1.09 @Remington Lyman 1.01 

    Borderline @Steven Foster Wilson 0.94

    Definitely avoid @Bob S. 0.62 @Mike D'Arrigo 0.62 @Aj Parikh 0.58

    4Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    4y
    Quote from @Account Closed:
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

     You are new to the forums, so be careful taking advice from people with low Vote to Post ratios (under a value of 1).

    Excellent ratio @Darius Ogloza 1.2 @Mike Mocek1.09 @Remington Lyman 1.01 

    Borderline @Steven Foster Wilson 0.94

    Definitely avoid @Bob S. 0.62 @Mike D'Arrigo 0.62 @Aj Parikh 0.58


     By that logic, we should avoid everything that you write because you have 0 references on your profile compared to 47 references that people have written on my profile. 

    I don't know you and and haven't spoken with you so I would be careful with trying to spread wrong information about me. Rather than coming up with these statistics, it would be valuable if you can share your experience on investing in Toledo, OH. 

    Regardless, I am on these forums just to add value to investors and trying to help out since I have gained a lot from Bigger Pockets.

    7Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    4y
    Quote from @Aj Parikh:
    Quote from @Account Closed:
    Quote from @Puneet Pal Singh:

    I would like to know if Toledo, Ohio area is good place for investment in single family or multi family homes?

     You are new to the forums, so be careful taking advice from people with low Vote to Post ratios (under a value of 1).

    Excellent ratio @Darius Ogloza 1.2 @Mike Mocek1.09 @Remington Lyman 1.01 

    Borderline @Steven Foster Wilson 0.94

    Definitely avoid @Bob S. 0.62 @Mike D'Arrigo 0.62 @Aj Parikh 0.58


     By that logic, we should avoid everything that you write because you have 0 references on your profile compared to 47 references that people have written on my profile. 

    I don't know you and and haven't spoken with you so I would be careful with trying to spread wrong information about me. Rather than coming up with these statistics, it would be valuable if you can share your experience on investing in Toledo, OH. 

    Regardless, I am on these forums just to add value to investors and trying to help out since I have gained a lot from Bigger Pockets.


     No "wrong information" has been spread. Your ratio is 0.58. Its simply math.

    2Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    4y
    Quote from @Aj Parikh:

    You will find properties cheaper than the Cleveland area but you won't find the same appreciation as Cleveland. I own 12 units in Cleveland and would love to connect and chat real estate. Feel free to reach out.

    Toledo > Cleveland

    2Reply
  • Chad Boyers
    Real Estate Agent · Toledo, OH · Member since 2019 · 88 posts · 38 votes
    4y

    @Bob Stevens You’ve been missing out if you’ve not been investing in Toledo the past 10 years. I’ve got a friend that bought 10 SF about 3 years ago for $700k. Estimated value now: $1.5mm. I had clients that bought primary residences 4-5 years ago that sold for 50+% more than they bought them for. Appreciation has been happening here just like most other areas. We are continuing to see multiple offers on good properties as supply is still low.

    1Reply
  • Chad Boyers
    Real Estate Agent · Toledo, OH · Member since 2019 · 88 posts · 38 votes
    4y

    @Aj Parikh Mike P. has done very well investing in Toledo. I'm not his agent, but I know that he's been able to capitalize on both good cash flow as well as appreciation.

    3Reply
  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    4y

    no

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free