Investing in Toledo

[Dave Dumoulin]

Hello members,

I am an out of state investor, currently owning 10 units in Cleveland. I am now planning to buy some properties in Toledo for the cash flow, and collecting some data. What are the C and C+ neighborhoods in Toledo today ? Which tenant profile for SFH are you likely to meet in those areas ?

Great thanks !

[Andrew Fidler]

@Dave Dumoulin Hey thank you for focusing on Toledo Dave!

Defining the class of the neighborhoods is the tough one to start that grade C out for...I have some clients unused to the mid-west who are used to high-end suburbs who consider our better areas a B- area.

Personally, I classify the C- anything I verify I have easy access to my spare magazine before I enter a vacant property. B grade property walks are attended by my children to run around and tell me which bedrooms they would pick if it was their home.

43605, 43608, 43609 are the popular zipcodes for bottom-budget value purchases...I manage a ton in these areas and my personal portfolio contained over 40 43608 properties at the peak. 

20% of these properties will be crazy money earners, 20% will be astounding money pits, and 60% will fare average.

I have evolved into the nicer 43612/43613 for my personal portfolio and find the properties earn consistently and far smoother than my 43608 houses. ($80k renting for $1200 vs $40k renting for $800 multiplied by the ratio above vs boring consistency of the nicer area) 

Oh and I have zero excitement for apartments. I have been investing in Toledo, OH since 2009 and owned 2-12 unit buildings and find they are way too hyped (read lots of guys from BP want to pay too much for them) and the reality is residents in Toledo are ultimately seeking a house with a yard and a garage so as soon as a resident improves their financial situation they move into a house. Additionally Section 8 owns a ton of apartment complexes so there is aggressive competition when compared to the single family vouchers that are very commonly available to us small-time housing providers.

Love to talk Toledo, again thank you for the interest!