Flip or rehab to rental scenario in Toledo

4 Replies

Because of confidentiality, I'm limited on what information I can give at this moment, so I know there are a lot of variables that would determine if there would be any interest in this specific property or not. Just hypothetical at this moment.

It's located around the area of Airport Hwy and Fearing Blvd. Doesn't look like the prettiest area, so I assume more of a rental area than a fix and flip area. But I don't know the market.

Roughly 1,500 + SF, 3 bdr, two story on a corner lot. From the exterior photos I have it looks like it would need siding, windows and landscaping now to be presentable, and probably a new roof in the not-too-distant future. It is occupied, so I assume the inside is at least in livable condition. Supposedly updated electrical and plumbing in the last 10 or so years. 

I would want to sell it only to an investor on a land contract for somewhere around $12k with $1,500 or so down. They would be able to inspect the property before purchasing so they wouldn't be going in blind like me. Does it sound like something there could be enough room for somebody to make some money on buying it like this, assuming it's not about to fall over or need a complete remodel?

I'm mostly interested in selling on a land contract since it's really the only way I'll make money on it while selling it for a price I can move it quickly. Also only interested in selling to an investor because I don't want to end up selling it to somebody I'll just have to take it back from in worse condition. 

I appreciate any and all input! Thanks!

@Kevin Vandenboss Definitely not a good flipping area. It is tough to comment too much on your idea because I don't know the other investor. I am not sure what kind of return or profit margin he/she would be looking for to give much advice on the situation. However, I can say that the neighborhood is not the best over there, but I wouldn't say it is a total war zone either. I have certainly seen worse.

I had a friend that owned a number of rentals not too far from there and as I recall he was into most of those properties for 30-40K each. Some might have been a little less. Since I don't know the house you are talking about specifically or its condition, I can't give you an estimation of value, but I would say that is probably the range of values you are looking at over there. So assuming you were happy with the $12,500 and it didn't need a ton of work the other investor could expect to pick up a 30K house for about 12,500. That isn't bad. 

Thank you for the insight @Michael Temple that helps a lot. Exactly why I don't want to be sitting on a house in a market I'm not familiar with. I saw some comps in the area around the price range you gave, so my thought was if somebody could pick this up for $12k it would leave plenty of room for needed repairs. 

@Michael P No typo, $12k. It's in pretty rough shape. I have no interest in the property myself so I would just be trying to pass it along quickly before it costs me any money. 

I think that $12k is probably reasonable. A quick MLS search shows sales of $24-62k in the area, other than some land bank at <$5k. Good luck!