Toledo, OH · Member since 2022 · 46 posts · 26 votes
Attention northwest Ohio investors...are you still finding deals in NWO and the greater Toledo area? I am seeing a lot of investment properties come to the market that are selling for 50-75% more expensive than they were just a few years ago (and they are not necessarily in great shape). What is interesting is that most of these properties still easily pass the 1% rule and work out well when you completely analyze the deal.
I'm selling a bunch since prices have gone up so much. The funny thing is what I'm selling still beats the 1% rule. For example purchased a duplex 2 years ago for 75k. Did minor updates and rented each unit for 750. Selling now for 130k, so I make a nice profit and it still beats the 1% rule for the buyer. Overall the plan is to sell off the C class holdings the keep/invest more in B & A class. That being said I've bought 4 deals this year as well. Still plenty of deals to be found through networking, wholesalers, sheriffs auctions, or just making all cash offers on MLS listings.
I've seen this in multifamily where there has been a lot of investor interest. Rents have increased but, in some cases, there's the mindset of "if someone is willing to pay more than its worth..." (Where "more than its worth is defined by the owner.) That same property might have hit the 2% rule (or better) for the owner but, if they can sell it to someone and keep the extra equity it makes sense, especially to an owner who thinks the property value is overinflated (but will sell for the overinflated price.)
I'm selling a bunch since prices have gone up so much. The funny thing is what I'm selling still beats the 1% rule. For example purchased a duplex 2 years ago for 75k. Did minor updates and rented each unit for 750. Selling now for 130k, so I make a nice profit and it still beats the 1% rule for the buyer. Overall the plan is to sell off the C class holdings the keep/invest more in B & A class. That being said I've bought 4 deals this year as well. Still plenty of deals to be found through networking, wholesalers, sheriffs auctions, or just making all cash offers on MLS listings.
As a realtor in Toledo myself, I see this too. Properties that I once would have sold to my clients I would steer clear away from now because the cash flow just isn't enough to support the value of the area.