Toledo's small multifamily stock is mostly older and mostly affordable: up-and-down doubles in East Toledo, side-by-side doubles in South Toledo, Victorian houses split into three or four apartments in the Old West End, and brick fourplexes along West Toledo's side streets.
In short: LendingStreet finances Toledo duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns. Loans start at $150,000, purchases go up to 80% LTV and cash-out up to 75% LTV, with a 1.0x standard minimum DSCR, 620 minimum credit score and LLC borrowers allowed. Our investor loans are business-purpose loans on non-owner-occupied property.
Much of Toledo was built before 1950, and the city has a large supply of two-family homes. The classic up-and-down double puts one apartment on each floor with separate entrances. Side-by-side doubles share a center wall. In the Old West End, Vistula and around Toledo Hospital, large older houses were divided into three or four units decades ago.
West Toledo, Old Orchard and the streets near the University of Toledo have brick fourplexes and small two-story buildings from the 1920s through the 1960s. In the suburbs, Maumee, Oregon and parts of Sylvania have newer duplexes, often side-by-side units with garages, at higher prices and rents.
Bowling Green, in Wood County about 25 minutes south, adds another pocket of duplexes and small converted houses leased to students at Bowling Green State University. Those properties follow Bowling Green's own zoning and rental rules, not Toledo's, so check with that city before you buy.
Many Toledo doubles sell for less than our $150,000 minimum loan. A double at $165,000 with 20% down needs only a $132,000 loan, which falls short. There are a few ways around that:
Confirm the legal unit count with the city's zoning records and the Lucas County Auditor before you buy. Some older conversions were done without permits, and an appraiser may value an illegal third unit as storage, which lowers both value and qualifying rent.
Toledo's lead-safe rental rules apply to many pre-1978 rentals with one to four units, which covers most doubles and fourplexes in the city. Budget for the inspection, any repairs needed to pass and registration. Confirm the current rules with the city and the county health department.
This example is illustrative and not a quote. An investor buys a brick fourplex in West Toledo for $260,000 with 25% down. The four units rent for $875, $850, $850, $825, a total of $3,400 a month.
Estimated principal and interest on a 30-year loan of $195,000 is about $1,330. Taxes of $350 and insurance of $233 bring the total payment to about $1,914. Rent divided by payment gives a DSCR of about 1.78x.
This is why fourplexes are popular with Toledo investors: modest rents per unit, but four of them against one low price. Watch the costs DSCR does not capture, such as owner-paid water and heat in older buildings with shared systems.
| Unit | Monthly rent |
|---|---|
| Unit 1 (two-bedroom) | $875 |
| Unit 2 (two-bedroom) | $850 |
| Unit 3 (two-bedroom) | $850 |
| Unit 4 (one-bedroom plus den) | $825 |
| Total rent | $3,400 |
| Estimated total payment | $1,914 |
| DSCR | 1.78x |
Unit rents in the city are generally modest, while suburban duplexes in Maumee, Perrysburg and Sylvania rent for noticeably more. Student demand around the University of Toledo and Bowling Green State University, about 25 minutes south, supports multi-unit rentals with more turnover. Use the appraiser's rent schedule, which shows market rent for each unit, as your guide rather than an old lease.
Buying from a long-time owner often means leases well below market. That can be an opportunity, since raising rents at turnover improves the ratio, but how actual leases and market rent are weighed varies by program. If the in-place rents are far below market, ask how they will be treated before you lock in the purchase price.
Lucas County taxes are moderate in dollars but high relative to the low values of many city properties, and reappraisals on Ohio's six-year cycle can raise them. Rental properties do not get the owner-occupancy reduction. Insurance carriers will ask about roof age, electrical service, heating systems and whether units have separate furnaces and meters. Older knob-and-tube wiring or a shared boiler can raise premiums or limit carriers.
Lake-effect snow and freeze-thaw winters are hard on older porches, gutters and roofs, which are common inspection items on Toledo doubles. Fixing them before you apply can help both the appraisal and the insurance quote, and it keeps the property in shape for the lead-safe inspection as well.
Five- to eight-unit buildings are still residential for us. Toledo has a number of them in the Old West End and near downtown. See our Toledo 5-8 unit page, since leverage on those buildings can be lower and varies by program. Larger apartment buildings fall under our commercial pages.
Send the address, price, rent roll, and any lead-safe or inspection reports through the form below, or call (877) 298-1001. We will tell you quickly whether the deal clears the minimum loan amount and the DSCR test, and if it does not, whether a blanket or a different structure would work.
Yes, if the loan amount is at least $150,000. Many lower-priced doubles need to be combined with other properties or financed under a blanket loan.
Yes. The appraiser's rent schedule shows market rent for each legal unit.
Toledo's lead-safe rental rules cover many pre-1978 rentals with one to four units. Confirm the current requirements before you buy.
An unpermitted unit may not count toward value or rent. Confirm the legal unit count with the city and county records.
Purchases go up to 80% LTV, so 20% down at minimum. On a low-priced double, a larger down payment can push the loan under the $150,000 minimum, so the right down payment depends on the price.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Yes. Cash-out goes up to 75% LTV after seasoning, and rate-and-term goes up to 80% on some programs.
Yes, if they are 1 to 8 unit residential rentals that meet the DSCR test. Expect the appraiser to use market rent per unit, and plan for more turnover than a family rental.
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