Someone talk me out of (or into) bying this property.

[James Thierbach]

I'm looking to purchase my first rental property by the end of the year and I've been scoping out out-of-state opportunities (I live in So Cal). I've seen a lot of people mention Toledo for cashflow, so I started looking MF in the area and I found this property:

1338 Brooke Park Drive Toledo, OH 43612 (8 Units - 2 Bed/1 Bath each) $280K

I ran a rental property analysis on BP and filled out (conservatively) everything I knew how to (I don't know the area very well). 

25% down, 30 year 6%, $4K monthly income ($500/unit), $3500 property taxes, $5000 annual insurance (shot in the dark, this is one of the things I have the hardest time estimating), 7% repairs/maintenance, 8% capex, 5% vacancy, 9% property management. I know I probably need to pay water and sewage as well, but honestly have no idea what to put for that. As the numbers stand, I come up with the following return:

$873/mo cashflow, 13.8% CoC ROI, cash needed - $76K.

Those numbers look great to me as a newbie, but seeing as the property has just been sitting on the MLS for the past 4.5 months, I'm assuming it's not a fantastic deal. So I was hoping some of you may be interested in analyzing it with me and we can discuss what makes it a good/bad deal. Thank you.

[Michael P.]

Brooke Park Dr is a running joke amongst Toledo investors. It’s a shìt street to buy an investment property. You’d need to buy the whole street and clean out the crap tenants and start over for it to work which would require losing money up front which nobody ever does so the buildings keep getting bought and sold as the owners burn out trying to collect rent from the drug dealers etc.

But that street aside there are plenty of great cash flowing investments in Toledo and 43612 is generally a great area for investment properties.