Newbie looking for knowledge

[Chris Fisher]

Hello all,

I'm new to all this. I'm looking at building a portfolio in Toledo, OH. Anybody live around here so I can pick your brain? 

More general question: We have a lot of really cheap fixer uppers around here. I'm talking 50K or less. Rents in those neighborhoods are showing as $1200+ a month. They're not the greatest neighborhoods. Is it worth BRRRRing these houses? 

Thanks,
Chris

[Joseph Tadres]

Chris, I’m in Ohio and have looked at a lot of those $50K Toledo fixers. The numbers look great on paper, but the neighborhood can make or break you. You might get $1,200 rent, but turnover, repairs, and tenant issues can eat that up fast.

I’d walk the area, talk to local PMs, and see the true demand. Some do well with Section 8 in those spots, but if you want fewer headaches, look at $70K–$90K homes in more stable pockets. I can share a few Toledo areas where the numbers and tenant quality are better if you’re interested.