Toledo Ohio Rental Investing

11 Replies

I'm looking to invest in the Toledo market, specifically 43608. 

I plan on dipping my toe in first with a $25K-$45K rental at 30% down. If things work out, I will increase my investment in 2021. My strategy is buy and hold. I only care about rental income; I don't care about appreciation.

I've created a python program that performs rental real estate analysis on large data set. It takes in all the MLS listings for a particular zip code, processes each listing and then sorts them by the best ROIs. It allows me to quickly and efficiently find favorable deals (by the numbers). I've been finding some attractive investments, but I am hearing a lot of negative feedback about investing in a low income area like this.

I would like to know a little bit more about this area. If you've invested in this area, what has you're experience been?

Thank you!

@Matthew H Lohens - are you local to Toledo and self managing? 

I would get a team together before I would buy anything.

My findings have been the online data for 43608 is sketchy at best, I have been operating there for over a decade now and a few hundred properties but I stay in the top 20% of the zip code...and that area changes by the block from nice to ok to OMG to “glad I am carrying two firearms today”. 

You do have the correct approach that it’s a cash flow king over there...just avoid the wholesalers and inexperienced realtors who don’t know the area.

Getting a purchase under contract is easy. There are properties for $10k that arent worth a buck and $30k properties that should be worth $10k.  Be very careful is my advice. 


@Matthew H Lohens

I’m not sure where you would find financing for sub 50k properties in war zones. For your first investment I’d strongly recommend something a lot less risky. Investing into d neighborhoods from out of state is super risky. I’m out of state and find the suburbs out toledo to be a much safer investment.

Originally posted by @Matthew H Lohens :

I'm looking to invest in the Toledo market, specifically 43608. 

I plan on dipping my toe in first with a $25K-$45K rental at 30% down. If things work out, I will increase my investment in 2021. My strategy is buy and hold. I only care about rental income; I don't care about appreciation.

I've created a python program that performs rental real estate analysis on large data set. It takes in all the MLS listings for a particular zip code, processes each listing and then sorts them by the best ROIs. It allows me to quickly and efficiently find favorable deals (by the numbers). I've been finding some attractive investments, but I am hearing a lot of negative feedback about investing in a low income area like this.

I would like to know a little bit more about this area. If you've invested in this area, what has you're experience been? Any good property management recommendations? I'll take whatever you're willing to share. 


Thank you!

I would not recommend you buy in a rough neighborhood from out of state based on an MLS algorithm instead of using a realtor familiar with the area. The best deals there are probably not listed on the MLS but scooped up by Andrews team. There are safer neighborhoods in Toledo to invest in for only a little bit higher price point. Maybe look at the 43612 area properties for 45-55k.

Originally posted by @Matthew H Lohens :

@Stone Jin

What kind of ROIs do you get out there?

Our criteria is going to be different than what you may be looking based on this post.  We have been investing over a decade and are looking for stable assets and not in growth mode.  You will need to decide what your risk tolerance is and what your criteria is.  I can tell you that our cash on cash is usually greater than 10% annually

 

A safer strategy would be to hang out in the 43608 until someone comes along and kicks your butt and takes your money.  At least you won't be throwing good money after bad at that point.  

 

@Stone Jin

Thank you for sharing. My risk tolerance is relatively high. I don’t mind risk as long as I understand the risks and have proven ways to mitigate those risks.

Seeing as I don’t have the knowledge to understand the risks of the 43608 zip code, I think I will take your advice and look for an inherently less risky zip code.

Thank you for the advice!

@Michael P.

Thank you for you response. I will look in the 43612 zip code for this first property. I still think that there are some good opportunities in the 43608 zip code, but I think I need to strengthen my connections before I try to invest in those areas.

I appreciate the help!