Dave Poeppelmeier LaPlante Real Estate
States: Ohio
Cities and Towns: Lucas and Clark
Cities and Towns: Toledo, Sylvania, Holland, Springfield, Maumee, Perrysburg, Rossford, Oregon
Licensed Since: 2020 | OH License # 2020001438
About Dave Poeppelmeier
I have been involved in Investment Real Estate since 2013 when my wife and I kept our personal home as an investment property in Akron, OH and moved back to Toledo. Since then, we began slowly by purchasing one house per year for a few years, then things continued to grow as we moved into Student Rentals at The University of Toledo. I was a Physical Therapist for 20 years, specializing in Home Care the last 5 years, before leaving Health Care to work in Real Estate full time in 2020. I worked in LaPlante's Property Management division for 9 months, where I experienced how a PM operates from the inside. I am now only a Realtor, and all I do is work with Investors.
When it comes to searching for properties, I work off the MLS primarily. I do learn of off-market properties occasionally, which I will pass along. I will help Investors analyze properties on paper, and if they look promising, I will go visit the property. If it is vacant, I will take a walkthrough video with my color commentary on what I like/don't like, what I think needs done to get a property rent ready, etc. If it is owner occupied, I will take pictures. If it is tenant occupied, I will take pictures of mechanicals, foundation, outside, etc, but not of the tenant's personal belongings. At that point, we will discuss my findings and make offers appropriately. What I will NOT do is make high offers, with the expectations of "beating down" sellers on the Inspection.
Market Overview
Toledo is a cash-flow town. I generally expect appreciation to keep up with inflation, which it has. Toledo's prices increased 10-15% over the past 2 years, and I expect a small pullback, but nothing drastic. Regarding Cash Flow, you can generally expect to see 1.2-1.4% (1%/2% Rule) on Single Family and at least 1% on Multi-Family in C class areas of town here. There is also a housing culture of renting here, as just under 50% of Toledo's housing stock are rentals, with most of those being in the C and D Class neighborhoods. There is, and will continue to be, demand for quality rental housing here, and the wait list for LMH Vouchers (Section 8) is 3 years long currently.
Toledo's economy has diversified significantly over the past 20 years, and is no longer reliant on the Auto Industry. Toledo has lots of Transportation employment, given that you can get to most of the Eastern US within an 8-hour drive because of I-80/90 and I-75. There is also significant Medical employment with the ProMedica and Mercy Hospital systems, and The University of Toledo/Owens Community College are large economic drivers in the region. Toledo is also proud to be the home of Jeep, with it's main manufacturing facility still in the city, and there is still a significant amount of Auto Support industry present.
Investment Price Points
Of course, one of Toledo's biggest attractions is the low cost of entry in this market. Being a Midwest City, Toledo's population density is much less than costal cities and larger metro areas. You will find significantly more Single Family properties here than Multi-Family. In C-class neighborhoods, you will see 2/1 and 3/1 houses primarily. There are 3/1.5, 3/2, and 4/2 houses around and those sell at a premium. For a 3/1 SF in a C-class neighborhood, you can expect to spend $70-85k with some work to do after, and $85-95k for a nice turnkey property. For duplexes in these same areas, you can expect to spend $90-120k that will need rehab, and $120-150k for properties that are ready to go. You can progress up to C+ properties and find similar to slightly less cash flowing properties, but once you start getting into B- and B class properties, your returns diminish significantly. You can also find good returns in C- area, but you need to know the streets and neighborhoods, which is what I know very well with my time working in people's homes as a PT.
Free Report: Demographic and Housing Data on the Toledo Market
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