Toledo, Ohio Duplex

[Carlos A.]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $82,000
Cash invested: $17,000

Early 1900s duplex located in Toledo, Ohio. Was in pretty solid shape when purchased with long standing tenants.

What made you interested in investing in this type of deal?

I was looking for a cheap way to get started in oos investing and small multifamily properties. Killed two birds with one stone.

How did you find this deal and how did you negotiate it?

It took me about a month to find. We were able to talk down the purchase price due to some simple fixes needed on the property.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

We increased the rent day 1 and redid the electrical work.

What was the outcome?

Was able to pay down the mortgage quickly and now cash flow handsomely.

Lessons learned? Challenges?

Cheap real estate isnt always the best way to get started. Look for equity growth and purchase based off total ROI not just cashflow.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! Andrew Lee helped me find, purchase and manage the property!

[Engelo Rumora]

Quote from @Carlos A.:

Quote from @Michael P.:

Nice start. Are you going to keep buying in Toledo.

 I am certainly open to it. One of the main things that I have realized though is that the Toledo market (and markets similar to Toledo) are much more reliant on cash flow compared to appreciation. Although I love the monthly cash, I am torn between scaling the amount of properties in Toledo or purchasing fewer properties in much higher appreciation markets, like south florida...

Appreciation is unpredictable. Cashflow is more predictable. A good mix is needed IMO. Lots of “smoke and mirrors” that Toledo will appreciate this year but that’s all BS. You can’t compare Toledo to Florida or Texas from a growth prospect standpoint. Cashflow wise, nobody comes close 👍