Best Toledo Rental Property Locations?

Question

Hello Toledo investors,

Im new to BP, this is my first post. Ive already learned a great deal from the site and the people on it! Im hoping you can help with some information. I live in Arizona but am from Toledo, I moved away quite a few years ago. Ill be back in Toledo in May and have been looking at real-estate options there. The numbers seem to make more sense in Toledo then my area. Im interested in purchasing rental properties in the Toledo area, SFR and multifamily. I was hoping you could give me your thoughts on what areas you would recommend and why? What neighborhoods, zip codes, parts of town, etc? Ive seen some previous recommendations from older forum posts but wanted to get the most up to date information I could. My sincere thanks for the help!

Patrick McInnis · Answer

@Andrew Fidler @Engelo Rumora,

Guys, all this talk of Corona and Jonny Walker sounds like a good time!

Andrew, Staying out of 43608 for the time being sounds like very good advice. As well as the importance of strong local management. Thanks for the input. Ideally I am looking to find a decent buy on a SFR or multifamily that won't require a ton of work to make it a more feasible option. Managing a big rehab from Arizona could be too difficult without being there. Ill shoot you out a PM soon.

Engelo, thanks for your thoughts as well. I have run a fairly big remodel job in years past and trying to do that from far away I'm sure would be quite difficult. Haha, being on the job every day was difficult enough.

Do you both feel purchasing a property in 43612 with minimal fix up work needed using a local property management company is a feasible proposition from out of state? I will be able to do a lot of the initial work (interviewing property management companies, seeing properties while I'm in town). Also do you find the 50% rule is a decent rule of thumb for expenses in Toledo for SFR and smaller multifamily? Thanks again

Andrew Fidler · Answer

@Engelo Rumora, need to upgrade to beer brother :)

I won't leave the month of April with a full time job so it's just a matter of letting the clock run out. Plenty of time to meet when it's sunny out side and Ohio weather is over 70 degrees and a Corona tastes amazing!

Totally agree with you there are a hundred maybe a thousand ways to make $$ in rental properties! Just a matter of picking on and sticking with it when things get difficult!

Engelo Rumora · Answer

Great tips mate Andrew,

Now please reply to my message and let's do coffee.

Investing out of state without buying turnkey is a recipe for disaster.

I am yet to see investors doing this stress free and successfully from afar.

To this day and after 400+ deals under out belts, we still loose money to contractors on some occasions.

It's a tough gig and your money is safer doing a flip close to home where you can better control the reigns.

Just my opinion.

Thanks

Andrew Fidler · Answer

Alright so you are VISITING Toledo in May, big difference for management :)

The jury is out right now on local management...for sure stay out of 43608 till you are super confident in your management company and they have proven success at the "advanced" level. You can search BP for some discussions or PM me. I suggest your trip in May will be more about interviewing managers than looking for properties. I'm a realtor so I'm happy to show you anything you're interested in while you're in town.

If you have the cash reserve to buy a place needing some work, then have the work done to get the place rent-ready and rented you will get your best all-in price. I have seen a few auctions come through for rent-ready houses (not foreclosures with theft/vandalism, typically it's Grandma's house which hasn't been updated in 30 years)...these may be an excellent option to get a house at 70% of value and only have to put 5% in to be rent-ready...but it all depends on who else is attending!

The other option is to buy turn-key...plan on these being 125% of the market value so you will have to wait until the market values catch up with your purchase price. Still some have financing and management included as well as quality-guarantees. A good number of options in this niche. (Hell I could sell you a few of mine if you wanted to go that direction)

Focus on 43612 as a common favorite if you are looking for $30k houses earning $750 monthly for a 3 bedroom...northward into 43623 will be a $60k house earning $850 for a 3 bedroom house. You can head to other neighborhoods as your chosen management company shows competence.

PM me your email address and I will set you up with an MLS search drip.

Rob Badhorn · Answer

Hi @Patrick McInnis, I too was born/raised in Toledo and live here in AZ (and some in Toledo now).  If you any questions let me know.  I would be happy to help.  Also please stay out of the 43605 (East Side) its pretty rough.  Best of Luck! Thanks! Rob

Matt R. · Answer

I manage in the 43612 and 13 zips.  They are really nice to self manage.  But if you are not going to manage them yourself, go for 43609, the returns can be crazy high.  The local paper ran a story a few weeks ago that some zips have an ROI as high as 119% a year.  I had an opportunity (that I turned down) to buy an apartment building for 36000.  It was fully rented at 2100 a month.  Even with a management company ($70 a door), electric, water, taxes, and insurance it pulled in nearly 40% ROI a year.

Patrick McInnis · Answer

Haha, ok thanks, about what I figured.

Engelo Rumora · Answer

lol

Yes it is.

The thing is tho you will never get better deals then the locals do like us.

So as long as you're happy with "scrappy seconds" or stuff off the MLS, then go for it for sure.

PM is another story in itself lol

Much success mate

Engelo Rumora · Answer

How about scotch?

I have Johnny red, black and blue at my office hehe

Patrick McInnis · Answer

Hi @Andrew Fidler

Thank you so much for your thoughts! I will not be self managing, I will be looking for a quality local management company. Living in Arizona I think this will be the best strategy. My concern is the rougher the neighborhood the more difficult to manage with regards to rent collection especially. In your experience do you find 43608 is an area where rent can be collected relatively easily? Meaning if a manager has to physically go the property(s) to collect rent a management company may either not want to do this or not do it reliably. Im sure tenant screening will help this issue though.  Is this less of an issue in 43612? Thanks!

Best Toledo Rental Property Locations?

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