What's wrong with Toledo? Help!

Bird Dogs, Wholesaling
1

My partner and I have 5 properties on contract for 85K, 2 duplexes and 3 houses, all rented and bringing in $2800 in rents. They are all in good condition, some have new roofs, new siding and interior upgrades.

This last week and a half I have run ads in some magor cities, Orlando, Miami, Cincinatti, Akron, Los Angeles and San Francisco etc with not one call.

If these properties were in California I could of flipped them in 2 hours. Is East Toledo a severly depressed area?
Would that be a bad investment for an investor? OMG it’s pulling in nearly $2,000 Positive Cash Flow a month? We are trying to flip them for 1115K The lady owner owes 60K She’s distressed, husband went to prison.
I have been wondering why she wud give up that kind of income for just 25K

What am I missing here? Am I the only one that thinks this is the deal of the Century? Anybody familiar with Ohio and the situation there?

Rando

2

I would suspect that the investors are looking at the cash flow as being somewhere around $1400/mo less debt service.

So how much are they required to put down?
What’s the return after debt service?

Toledo is probably not even a warm market, so the “Toledo” investors are gonna invest for cash flow, not appreciation, unless there is a forced appreciation play available here.

Can these properties be upgraded to capture at least 30% more in rents, to justify a cash purchase?

If not, it falls back to a cash-flow-only play.

If the deal doesn’t represent a solid opportunity for high cash flow, then it will likely sit.

Not to mention, the high-cash-flow deals are likely high turnover, if not management intensive situations. The trade off for high maintenance and management opportunities, is usually cash flow potential. Just saying.

That’s my take.