¡Holy Toledo, Ohio!

[Account Closed]

Greetings everybody,

I recently became aware of investment opportunities in Toledo, Ohio (not to mention other cities in so-called flyover country). Whereas it's tough to find properties in my area that meet the 1.5% rule, it looks like 2% rule properties are all over the place in Toledo!

I'm definitely interested in getting a few rentals in Toledo to diversify and to get some strong cashflow. I've also heard of people who do lease options, wherein they buy somewhat distressed properties, have them rehabbed, rent them out for a couple of years, and then sell them, at a profit, to the tenant-owners. Perhaps that's something I can get into later.

But for now, I'd really appreciate any and all feedback about Toledo. I'd like to know the usual stuff--where to buy, where to stay away from, what property managers you recommend, as well as contractors, home inspectors, real estate agents, possibly a lawyer and others.

Ideally, I'd like to find a strong network of professionals so that I can buy a few SFHs or multifamilies--say, ten units or so--without necessarily spending much time in Toledo myself. I've even heard that it's possible to close on properties remotely, and that's something that might be appealing to me, too.

I've already got an accountant and a financier contact, but one of the issues I have realized is that most banks don't want to do RE loans that are less than $100,000. Does anyone know financiers who work in the Toledo area, that can finance small RE purchases, or perhaps several small RE purchases at once as a bundle?

All help is greatly appreciated, and thanks in advance.

[Ryan Pyle]

Hi @Account Closed , I've been investing full time in Toledo for almost 10 years now. Yes, the deals can be good, but don't let the low prices fool you. A $10,000 house is a piece of crap no matter where you look...even in Toledo. Please don't get fooled into buying something just because it can be bought for less than a used car.

With that said, my recommendation for an out of state investor is to buy in the Washington Local school district of Toledo. It is spread out mostly in the 43613, 43623 and a little bit in the 43606 zip codes. You can probably be all-in for around $50k for a good rental house and it will rent for $850 - $950 per month. The 50% rule for expenses is a pretty good rule of thumb in Toledo. The WLS school district is the blue-collar step-up from Toledo Public schools. It's always in high demand and there is a definite shortage of rental houses in the area. The big thing you have to watch out for is flood zones, as they run all through WLS. Do not buy a house that requires flood insurance as it adds about $1k per year in expense and will be very difficult to sell.

If you want multifamily you can find good deals in the $30k - $40k per unit range in Washington Local. Again, they are pretty easy to rent and manage as the tenant pool strong and the supply is short. 

Let me know how I can help. Good luck,

Ryan Pyle