Toledo, OH

[Shane Miller]

We are new to real estate investing and are considering the Toledo, OH market. Does anyone know about how long it takes to rent in this market? We are looking at properties in the 43612 zip.

[James Wise]

@Shane Miller welcome to the site.

Very high rental demand in areas of Ohio such as Toledo & Cleveland

[Ryan Pyle]

I have been a full time landlord in Toledo for 10 years. 43612 is going downhill. It is becoming the next 43608. With that said, Toledo is a very strong rental market right now. My vacancy rate for the last couple of years has been under 3%...that includes bad debt. But I self-manage my properties. My guess is it will be a bit higher with a property manager. This year I have been aggressive about raising rents as well and have had no drop in vacancy because of it.

But again, I urge you to use caution if you are buying in 43612. Values have been steadily falling in that zip code since the crash and they haven't leveled off. It used to be a mostly owner-occupant area, but it is now a mostly rental area. In Toledo, those trends don't tend to reverse. Therefore I would predict that 43612 properties will probably head the way of 43608, meaning they will eventually be worth maybe $15k at best in perfect condition.

[Shane Miller]

Thanks James and Ryan for the replies,

Ryan, So would you predict rents on these properties(43612) will stay strong but appreciation will be weak or nonexistent?

Is there a section of 43612 that is better than others, is there an area that provides better value today?

Thanks,

[Engelo Rumora]

Originally posted by @Shane Miller:

We are new to real estate investing and are considering the Toledo, OH market. Does anyone know about how long it takes to rent in this market? We are looking at properties in the 43612 zip.

Hi Shane,

Welcome to BP.

We just moved to Toledo and have bought quite a few properties in the last 6 weeks.

Your choice of zip code is spot on. Don't consider anything East of Lewis as it tends to be more rough. My business partner has been working in the 43612 zip code since the GFC and most of his sales have been to owner occupiers. The area is very clean with literally no bordered up houses at all. We believe once the banks credit loosens most "tenants" will become homeowners due to it being more affordable to pay a 30yr mortgage over monthly rents.

Other zip codes to consider are 43613, 43623, 43615, 43611 and parts of 43609 (close to the University).

As @James Wise mentioned. You shouldn't have any issues renting in this area. 3 bed, 1 bath homes will for for $700 - $750 and most tenants will stay at least 2 years.

Thanks for reading and feel free to reach out if your ever in town.

Have a great day.

[Wade Schwendemann]

@Shane Miller

I too am new to investing, and in the Toledo area. Best of luck to you!

[Ryan Pyle]

@Shane Miller

Rents should stay strong in this area. The housing stock is in better shape than the current rental-occupied areas because it is still in transition from owner-occ to renter-occ and therefore has not withstood tenant abuse yet.

I would focus on buying rentals in the Washington Local School district. There is very little rental stock there and very high demand. It is the "step-up" district from Toledo Public schools...not as good as the wealthier suburbs, but better than TPS, and taxes are still relatively low. The biggest thing to watch out for in WLS is flood plains. Don't buy anything that requires flood insurance because it will be very difficult to unload in the future.

You will pay more for houses in WLS...probably could be "all-in" for around $50k. A 3 bedroom will rent for at least $850 with tenant paying water (I bump the rent to $925 and I pay water). The tenant will have a good paying job and wages for you to garnish should they not pay. And you will have actual equity in the property, there will always be rental demand in the area, and it is way less likely to decline in price like 43612 will.

I speak from experience. I own about 40 houses in 43608 and 43605 zip codes. When I originally bought those houses I was selling flips in those areas for over $70k. I was all-in in my rentals for around $30k. I thought I had a ton of cushion. Guess what? As those areas turned from owner-occ to rental-occ prices fell quickly. Now those houses are worth $15k on a good day. Again, the same thing is happening in most of 43612.

With all that said, 43612 is OK in the Elmhurst Elementary school area. That should be OK for a while. But you will pay the same if not more that you would in WLS (because the homes are bigger in the Elmhurst hood) and the rents will be slightly lower and you have more risk of price decline down the road. I just don't see why you'd buy there.

Good luck.

[Scott Demots]

Hi welcome to BP, the community here can definitely help you navigate the REI waters. I have received a wealth of information and assistance from fellow members. Search around and ask questions as needed.

See you around the site!

[Shane Miller]

Thanks, this has been a huge help!

[Chris Sia]

Hi Everyone,

I've been reading your posts.

Thanks for sharing. I'm a newbie and have been doing extensive reading but still a bit chicken to get started. Can someone recommend a good property manager who has experience working with oversea investor? Thanks in advance.

Chris

[Sean Webb]

As for the post about value and rents dropping in Toledo. This is another reason why you should check the Clv market out

[Mark Nolan]

@Shane Miller

Welcome to Bigger Pockets. It is a good place to connect with real estate professionals and to learn about real estate. For example, you set up key word alerts. http://www.biggerpockets.com/alerts

[Stone Jin]

Can anyone discuss what the market conditions for rentals in the suburbs?  Sylvania/Maumee/Holland/Perrysburg.  I grew up in Toledo and am now pondering if investing there would be a good idea.

Thanks in advance.

[Engelo Rumora]

Originally posted by @Shane Miller:

We are new to real estate investing and are considering the Toledo, OH market. Does anyone know about how long it takes to rent in this market? We are looking at properties in the 43612 zip.

Great zip code

North of Syvlania Ave is good and the further North you go the better it gets ;)

Thanks and much success

[Fawaz Alkhaleefah]

do you guys recommend real estate investing  in Toledo 43620?

And what is the best management company?

Thanks in advance 

[Engelo Rumora]

Originally posted by @Fawaz Alkhaleefah:

do you guys recommend real estate investing  in Toledo 43620?

And what is the best management company?

Thanks in advance 

Hi Fawaz,

We opened up our PM doors to new investors.

Feel free to reach out to our team or send me a message and I can introduce you.

I'm sure they would love to hear from you.

[Jim Moody]

howdy...go to flexrealtypropertymanagement.com and there you will find 10 questions to ask any prospective property management company including licensing questions ...conflict of interest avoidance questions  and so forth ....I can tell you that with the right management Toledo is a great place to invest. BE SURE to be aware of the new lead laws being enacted and if your prospective manager does not tell you...well they might be??????

[Fawaz Alkhaleefah]

thanks for replying back guys!

but what do you mean about new lead laws Jim Moody?

[Adam A.]

 Here is more information about the lead base issue Toledo is facing right now.

There is a city council meeting today at 4 regarding this issue.

@Fawaz Alkhaleefah - My main concern is safefty and I use Trulia.com to determine if it's a good/safe area or not.

[Fawaz Alkhaleefah]

@the problem is i don't live in the states :/ .. But where i can read about this issue?

[Fawaz Alkhaleefah]

Jim Moody Adam A.

Thanks for the information guys , but how much does it cost to remove the lead of my investment property?

[Adam A.]

@Fawaz Alkhaleefah - It depends on how the law passes but it's estimated about 10K+. There are 158,000 in Toledo built before 1978 and 50% of them are rentals. About 45-55,000 have lead base problem.  

[Engelo Rumora]

Originally posted by @Adam A.:

@Fawaz Alkhaleefah - It depends on how the law passes but it's estimated about 10K+. There are 158,000 in Toledo built before 1978 and 50% of them are rentals. About 45-55,000 have lead base problem.  

Sounds like fun times once this gets approved. 

Will they force existing rentals to be abated?

[Fawaz Alkhaleefah]

Engelo Rumora Adam A. d

OMG! Did they approved this law already??

Or are they going to approve it soon?

What did the city council said about this law??

[Fawaz Alkhaleefah]

Engelo Rumora Adam A.

I mean , what did the city council decided??

[Engelo Rumora]

Originally posted by @Fawaz Alkhaleefah:

Engelo Rumora Adam A.

I mean , what did the city council decided??

I have no clue mate, I don't follow it closely.

Either way, there will always be opportunities out there so I wouldn't worry about getting caught up in stuff like this.

Much success