The Toledo real estate market is becoming increasingly attractive for both Toledo residents and out-of-state investors. Toledo, a part of Lucas County, is an Ohio city that was heavily impacted by the departure of large industry in the 70s and 80s, but today is re-emerging as an investing hotspot. Rental property is affordable, and the cash returns are some of the strongest in the nation. So if you’re considering investing in real estate, it’s time to consider a Toledo investment property.

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A Toledo investment property will help build long-term wealth.

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If you’re looking to build long-term wealth and grow beyond your regular salary, investing in assets that appreciate and generate income is essential.

A Toledo, OH, property is a great way to build wealth through real estate. Having wealth means you have financial freedom and are no longer tied to your job to support you. Some choose to invest in stocks or mutual funds. However, when the stock market is volatile, the stock market can see gains quickly vanish.

When the economy holds strong, stocks can be an excellent asset class that quickly grows in value – but it’s a gamble. Stocks are one of the first places to look when the economy shows weakness because their price will quickly reflect a lack of confidence. Unlike stocks, a house price takes much longer to respond to economic conditions.

As a result, it’s important that investors diversify their investment portfolios, and real estate has long been one of the strongest asset classes for building long-term wealth.

For centuries, real estate, particularly single-family houses, has been one of the most popular asset classes for building wealth. Unlike stocks and bonds, which are subject to extreme market fluctuations, real estate is a physical asset that tends to appreciate over time with comparatively stable values. In addition, real estate offers the potential for rental income, which can provide a steadier income stream than other investments. Of course, there are risks associated with any investment, but for those who are willing to do their homework, real estate can be a sound way to build long-term wealth.

In today’s economy, with rapidly changing finance conditions shaking the real estate market, purchasing in a stable and growing market is essential to successful real estate investing. Toledo, Ohio, is blossoming as one of the country’s top property markets. A Toledo investment property could be the perfect asset to start your investment portfolio and get on the road to building generational wealth.

Here are the top reasons to buy a Toledo investment property.

The Toledo real estate market is positioned to start going up!

Unlike most of the country, Toledo, OH, and Northwest Ohio markets have been comparatively stable. So while the city did experience price growth throughout the pandemic, it wasn’t the outrageously rapid growth that other cities experienced that resulted in overvalued markets.

Toledo, OH, isn’t an overpriced city.

In today’s economy, overvalued markets are dangerous. We’ve watched the average listing price of a single-family home skyrocket, but now that debt costs have risen, buyers are finding it increasingly difficult to afford homes.

Rental property in overvalued markets is at a high risk of dropping in value. This is particularly true when interest rates climb. Interest rates have a powerful impact on buyers’ capacity to buy property. As purchase prices increase, so does the cost of financing. That’s why the overvalued markets across the US are now starting to see listing price declines.

Despite the impact of inflation and the pandemic, Toledo’s real estate market experienced similar growth during the pandemic as it did before. In addition, the city’s price appreciation has been steady with consistent seasonal patterns. Therefore, as we progress into 2023, we expect Toledo sale prices to increase just as they have at the start of each year for the past five years.

Purchasing a Toledo investment property or Toledo, OH turnkey property today will likely mean investors benefit from value appreciation and equity in the coming years on top of their monthly cash flow.

Affordable pricing makes Toledo, OH, investment properties achievable.

One of the main reasons that Toledo won’t be affected by rising interest rates on the same level as other cities is that the average home price is far lower. For example, when compared to other cities in Ohio, like Columbus, the median home price of Toledo is less than half. Even the most desirable neighborhoods with great education systems have a median listing price below the US average price.

People choose investment properties in Toledo because they require less capital than most cities in the United States. With a median home sitting around $111,000, the initial down payment needed to purchase a property is far lower than in competing cities. For example, based on median home values, an investor looking to purchase with a 20% initial deposit in Columbus, with a median home value of $243,000, would need a nearly $50,000 deposit. Comparatively, Toledo’s median home price would only call for a $22,000 deposit.

Lower barriers of entry.

A lower home price means lower barriers of entry, making Toledo one of the best places for building a portfolio.

A Toledo investment property is an excellent option for those looking to build up their portfolio but who don’t necessarily have large amounts of capital. In Toledo, an investor’s dollar goes much further than in other cities like Columbus, Cincinnati, or even Dayton.

A Toledo turnkey property offers an affordable cash-flowing investment option. Explore tenanted options with Toledo’s leading turnkey real estate investment provider, Ohio Cash Flow.

Toledo has a strong rental market.

Nearly half of the population of Toledo rents their home, meaning there’s a large pool of renters to lease from real estate investors. Fair Market Rent prices in Toledo are considered very low compared to the national average, but they are not staying still.

Data shows that Toledo’s low rental rates are increasing! According to data from Roofstock, rent for a 3-bedroom home in Toledo increased by 22.6% in the past three years and over 9% just in the past year. This kind of rental growth generates incredible cash returns for investors, which is hard, if not impossible, to find in other cities. Furthermore, the cost of living in Toledo is 13% lower than the national average, so there’s still room for rental rates to continue increasing. As a result, Toledo investment properties will benefit from continued rental rate increases and tenant demand.

Strong cash flow and return in Toledo, OH

Residential real estate investors in Toledo can expect high cash returns on their properties, which makes it the best place for those just starting to build their portfolios. Investors can purchase affordable homes at cap rates above 10% and then build their portfolios using the positive cash flow they receive from their properties.

Before considering property value appreciation, investment properties in Toledo, OH generate strong cash rental returns. As a result, the Toledo housing market is a rare in that it offers the possibility of high cash returns for investors starting in year one, despite the current market’s high interest rates.

To protect cash flow and ensure long-term investment success, it’s crucial to engage a Toledo, OH property management company. Property management services can include rent collection, tenant placement, listing price advice, lease renewal negotiation, and maintenance. The top Toledo property management company is OzRealty, which offers a full suite of property management services to local and remote real estate investors.

Room for negotiation in a buyer’s real estate markets

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The story for most real estate markets across the country is that there’s insufficient supply to meet demand. While a tight housing market is great for active investors, it makes it extraordinarily challenging for those looking to buy. Toledo’s housing market has gone from frenzied to sensible, and there’s now more power in the hands of buyers, which is excellent news for investors. Seller’s markets lead to bidding wars and paying too much for an investment.

Pick the right property for you.

When investing in a buyer’s market, investors have the luxury of time and options. They can browse the market to find the ideal property that suits their investment criteria without the pressure that competition will swoop in and purchase it from underneath them. Furthermore, buyer’s markets mean that sellers are open to negotiation. They are prepared to receive offers under their asking price and willing to work with a buyer’s contingencies.

Negotiate the best deal terms.

Over the past few years, many US markets became so heated that buyers even had their all cash, contingency-free offers rejected. In Toledo, investors have a little more time and room to work contingencies into their deals.

Contingencies can help avoid costly repair work that can easily be missed without an inspection and completely change the dynamics of a deal. Imagine purchasing a property for $100,000 only to discover a year later that the property needs a new roof and HVAC system, which will cost $25,000. The investor’s capital costs are now considerably higher than initially planned, which will likely reduce their long-term returns on the investment.

Inspection and finance contingencies give investors improved confidence in their deal analysis and investment strategy.

Business investment in Toledo is #1 in the nation.

In 2021, Site Selection, a credible and well-known source for business performance, ranked Toledo as the number one mid-sized city for new business investments across the entire country. To better understand the relevance of this ranking, cities like Atlanta are also considered mid-sized.

Investors benefit from economic growth.

One of the benefits of buying real estate in areas with substantial business investment is that these businesses create jobs that help grow the economy. Companies need employees to help them run their operations. In addition, business investment can help spur economic growth in an area, further improving other businesses.

When businesses are doing well, they tend to expand their operations and hire more staff, which leads to an increase in tax revenue for the local government and improved public services. Finally, business investment can have a positive impact on the local community. By supporting businesses, Toledo, OH, is helping improve the quality of life for residents and the local economy and making the area a more desirable place to live.

Current business development in Toledo is expected to add 3,500 new jobs to the market, with more to come. Major industries that operate in Toledo are manufacturing and medical technology-orientated businesses. The economy is also heavily influenced by the surrounding universities, namely the University of Toledo and Bowling Green State University.

Real estate investors need to target areas with strong economic growth potential and a diverse economy, which Toledo has. It’s important to have several major industries that generate jobs and monetary flow. Toledo’s local economy helps support growing home values and rental rates, which in turn increases returns on Toledo’s investment properties.

Toledo housing market and population are expected to grow.

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Photo by Burak The Weekender

Like many cities in the Great Lakes Megalopolis, Toledo’s population took a massive hit after peaking in the early 1970s. The population of these cities infamously plummeted after major industries left the region.

Toledo’s population decline appears to have bottomed out, and we expect to enter a state of growth once again. The city offers a good quality of life while the cost of living is one of the lowest in the country. The city’s low cost of living and positive business economic policies make it increasingly attractive to new residents.

Population growth is a key factor that real estate investors look for when calculating value appreciation in their investment projections. While Toledo’s population growth has yet to rebound fully, evidence that population decline has finally bottomed out is present. As a result, investors, homeowners, and the city’s residents should be excited by Toledo’s potential as industry and economic prosperity return to the Glass City.

Oz Realty: Helping real estate investors get the most out of their Toledo investment property.

Toledo is a city of renters, with nearly half the population renting their primary residence. Therefore, property managers are a much-needed service for regular maintenance and rent collection on behalf of investors. Real estate investing can be either hands-on or passive, depending on the type of investor you want to be. Active investors must be prepared for regular maintenance calls and collecting rental income should the tenants miss a payment. But there’s a better option.

A Toledo property management company can remove the stress from real estate investing.

OzRealty is Lucas County and Toledo’s #1 property management company. It was founded as an ancillary business to Ohio Cashflow, a Toledo turnkey property company. Toledo turnkey properties are investment properties for investors to purchase and generate cash flow immediately.

A Toledo turnkey rental property is an excellent option for remote investors seeking strong positive cash flow from day one. These properties are fully renovated at established with stress-free property management through Toledo property management company, OzRealty. The average price of a rental property comes in under $100,000, providing an accessible entry point for investors around the country.

For more information about Toledo investment properties or to get started with Toledo property management, get in touch with Oz Realty today.

About the Author

Kelsey Heath

Kelsey Heath is a real estate content specialist with an extensive background in residential, industrial, and commercial property. She has been involved in the industry for a decade as a professional and personal investor, gaining a deep understanding of the market and trends. With a passion for written communication, Kelsey loves helping people understand the sometimes-complicated concepts behind real estate and is now a sought-out guest and ghostwriter.

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