Hi I am fairly new to investing. My wife and I are strongly considering investing in Toledo. My wife is from Toledo and owns a rental house in the 43615 zip code. She has gotten decent returns renting the house, but is considering selling. Currently, we live in Dallas, so our strategy is to buy and hold in the Dallas-Fort-Worth area, but the more we analyze deals the more attractive the Toledo market becomes. Is the 43615 a good neighborhood for buy and hold? Any insight into the Toledo rental market would be greatly appreciated. Thanks
Buddy 43615 is Holland and that is a HOT area to own in. Definitely a nice area with some nice appreciation over the past few years.
The only real question to resolve is whether the rental you own is earning what you want and if so you just need ten more like that.
The basic rule here is: the higher the value of the property the better the tenant class will be and the higher the rent will be...then when you fraction that into actual returns you will find that nicer properties make less profit.
I own in 43608 in $25k priorities at $700/mo (33.6% annual gross rent to purchase ratio)
43612, $35k properties at $800/mo (27.4% annual gross rent to purchase ratio)
Monclova (43542) $150k property rented at $1100 (8.8% ratio)
And a theoretical $250k house at $1800 mo (8.6% ratio)
The ratio doesn’t really mean anything except gross $$ coming in, you can run the same numbers for profit - lower end properties have lower taxes, maintenance, whatever except there’s that whole tenant quality to factor in so I’m not going to wrack my brain. (My Monclova Property looks like a complete dog on paper except it has appreciation and the same tenants have been there for five years and I never have repairs or vandalism or late rent to worry about...the resulting profit is difficult to ratio)
Conclusion- invest in the highest profit category you are comfortable in...I have a cast-iron constitution so I own in some really great profit areas. You will need to draw your own conclusions and develop your strategy accordingly.
Hope this helps!
Hi @Andrew Fidler , How are you ?
Are those numbers valid today ?
I'd assume the first two ones will be in C-D areas, Am I correct ?
Wouldn't the ROI of the lower end prices will be reduced by vacancy and higher repairs rate ?
Happy investment day,
Hi Benny- yes those figures are the same but prices are up a good 20% from those. I haven’t moved my rents up, they would be adjusted between new tenants or lease renewals.
43608 is a solid D
43612 (south side) is a solid C and if moves to a B as you go north.
43613 (east side) is a solid C, B as you go West.
I recommend my investors stay on the 43612 and 43613 areas and better. 43608 is more adventurous...and over half of my personal holdings are there so I am clearly bullish on it.
It is an obvious statement that your vacancy and vandalism risk exponentially rise between Holland, OH suburb vs 43612 vs 43608.
We take measures to reduce both such as renting S8 and keeping monitored security systems in place.
43608 is a bit like eating carp...they’re kind of ugly and an acquired taste but the money definitely spends.
I manage properties for others in all of these zip codes, with proper preparation and a team. Definitely don’t start your portfolio blindly in 43608 just because the numbers are stronger on paper.
Hope this helps!
Hi @Andrew Fidler . I just sent you a PM. I am looking at a portfolio of SFRs in Toledo and wanted to get your expert opinion. Its a portfolio of 14 SFRs in 43605, 43606,43609,43611 and 43612. Feel free to respond here or on the PM when you have a chance. Thanks in advance
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