Orlando, FL · Member since 2011 · 176 posts · 23 votes
I notice duplexes are maybe 1/3 more expensive than SFRs in Toledo but generate 75% more rent. Seems like a good deal. Primary downside appears to be less inventory though still not bad.
I hear tenant quality is a step down though. In markets that are already low cost I wonder if I may be getting myself and my PM into a headache by buying in a B area but actually getting C tenants. What do you guys think, are they trouble for out of area owners? Or still a pretty good option?
Rental Property Investor · Columbus, GA · Member since 2016 · 623 posts · 337 votes
5y
@Gary Dezoysa, pay close attention to the average stay of each tenant. I’ve found that certain units in certain parts of town have more turnover. This was a major source of frustration due to the high turnover costs. I have several small family homes outside of town that keep tenants for many years. Despite the lower rents, they cash flow nicely due in large part to very low turnover.
Rental Property Investor · Columbus, GA · Member since 2016 · 623 posts · 337 votes
5y
@Gary Dezoysa, pay close attention to the average stay of each tenant. I’ve found that certain units in certain parts of town have more turnover. This was a major source of frustration due to the high turnover costs. I have several small family homes outside of town that keep tenants for many years. Despite the lower rents, they cash flow nicely due in large part to very low turnover.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
The area is going to dictate the tenant more than the product type. There are great tenants in large multi's, small multi's and single family rentals. You are right in that a duplex will typically rent for less than single family home, but rent and income of the tenant are not the only indicators.
My SFRs in C neighborhoods have had great tenants. My duplex in an A area also had great tenants. My single families tend to have more families as renters. My duplex was almost exclusively young professionals. My duplex did turn more frequently (about 3 yrs occupancy on average), but also rented much faster. My single families are averaging 4-5 yrs, but typically have a month down (also because longer stay means more touch up work).
The key is to make sure you have fairly strict rental standards when you lease up. But also confirm that potential tenants in the area can meet them, i.e. don't require $100k salary if the area is a $40k salary area. I always wanted 3x take home pay, must verify, versus rent. No evictions, no bankruptcies, no major criminal background, must provide landlord references and those landlords must match county ownership records.
Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
5y
You can achieve great results in Toledo whether you invest in single family or small multis. Its personal preference I suppose. There are a great variety of tenant types. Some older folks will never move again and stay decades. Some people move around every year. These can be found in either in singles or duplexes.
Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
5y
I can echo what @Account Closed has stated. Our market here in Toledo has a wealth of long term tenants. Crazy to think about renting for 20+ years when you could get a mortgage for 15... but they do it!