Toledo is one of the lowest-cost places in the Midwest to own a small apartment building. Brick six-unit walk-ups and big Old West End houses split into apartments often cost less than a single suburban house, and the rent covers the payment with room to spare.
In short: LendingStreet finances 5-8 unit buildings in Toledo, Sylvania, Maumee and the rest of Lucas County with DSCR loans that qualify on combined rent, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, and leverage on 5-8 units varies by program. Check Toledo's lead-safe rules and budget for capital repairs on older buildings.
The Old West End has large Victorian and early 1900s houses, many split into apartments. Brick six-unit and eight-unit walk-ups are scattered through the neighborhoods around downtown, near the University of Toledo and in West Toledo.
Sylvania, Maumee and Perrysburg have newer small buildings at higher prices. East Toledo and the north end have lower-priced older stock.
Many Toledo six-unit buildings were built in the 1920s with two units per floor on three floors and a central stairway. Converted Old West End houses can have unusual layouts, so confirm each unit's legal status.
| Area | Typical building | Tenant base |
|---|---|---|
| Old West End | Victorian conversions | Professionals and hospital staff |
| Near the University of Toledo | Brick walk-ups | Students and staff |
| West Toledo | Six-unit brick buildings | Working households |
| Sylvania and Maumee | Newer small buildings | Families and commuters |
Ohio counties reappraise every six years with an update at the three-year mark. Taxable value is 35% of appraised value, the assessment ratio Ohio uses statewide, and local levies set the rate.
Rental property does not get the homestead reduction. Budget on your purchase price, because a recent sale can push the next value up. Ohio charges a county conveyance fee on sales.
Lucas County taxes vary by school district, so a building in Sylvania or Maumee may carry a different bill than a similar building in the city. Compare actual bills, not just prices.
A building with five to eight units is still residential for our DSCR programs, so it qualifies on the property's rent rather than your personal income. There are no W-2s or tax returns to collect, LLC borrowers are standard and the minimum credit score is 620. Loans start at $150,000 with no stated maximum, and 30-year terms are available.
The ratio is the combined monthly rent of every unit divided by the full monthly payment: principal, interest, taxes and insurance. The standard minimum is 1.0x, and sub-1.0 programs exist for buildings that fall a little short. Maximum LTV on 5-8 unit buildings can be lower than the 80% purchase and 75% cash-out ceilings that apply to smaller rentals; it varies by program.
Expect the appraiser to review the rent roll unit by unit and compare each rent with similar units nearby. Leases well above the local market can be questioned, and vacant units need a supportable rent figure, so a clean rent roll matters as much as the purchase price.
Toledo adopted a lead-safe ordinance requiring many older rental properties to obtain lead-safe certificates. The ordinance has focused on smaller properties built before 1978, so ask the city whether it applies to your building.
Ohio does not allow local rent control, and state landlord-tenant law sets notice and deposit rules.
Toledo has also used code enforcement and vacant building rules in older neighborhoods. Ask about open code cases before you close.
Owners of older rental buildings should also expect property maintenance inspections in response to complaints. Keep records of repairs.
This example is illustrative and not a quote. An investor buys a six-unit brick walk-up in West Toledo for $460,000. The units rent for $800 each, for a combined $4,800 a month. Taxes are budgeted at $800 a month and insurance at $383.
At 75% LTV the loan is $345,000, estimated principal and interest is about $2,412 and the total payment is about $3,596, for a DSCR of about 1.33x. At 70% LTV the loan drops to $322,000, the payment to about $3,435 and the DSCR rises to about 1.40x. The ratio is strong at both leverage levels, but the real test is reserves for a building that may need a new roof or boiler.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $460,000 | $460,000 |
| Combined monthly rent | $4,800 | $4,800 |
| Loan amount | $345,000 | $322,000 |
| Estimated principal and interest | $2,412 | $2,251 |
| Taxes and insurance | $1,183 | $1,183 |
| Total monthly payment | $3,596 | $3,435 |
| DSCR | About 1.33x | About 1.40x |
Many Toledo buildings date from the early 1900s, with boilers, original wiring, slate or older roofs and brick that needs masonry repair. Owner-paid heat is common in older walk-ups.
Get an inspection and a full-building insurance quote, and keep reserves for capital repairs.
Masonry repair, roof replacement and boiler work can each cost tens of thousands of dollars on a six-unit building. Keep reserves even when the ratio looks strong.
ProMedica and Mercy Health hospitals, the University of Toledo, Jeep production at the Toledo Assembly Complex and logistics jobs support rental demand.
Rents are modest, but low prices often produce strong ratios.
Students and staff near the University of Toledo lease on an academic cycle, while hospital workers lease year-round. A mix of both can smooth out turnover.
Toledo is also within commuting distance of Detroit and Ann Arbor, and some tenants work across the state line in Michigan.
Have these on hand when you request a quote.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote, use the form below or call (877) 298-1001 with the address, units, current rents and price.
The LendingStreet team will check the ratio against a realistic tax and insurance budget and show what loan amount the rent supports. Investors comparing markets can also read our Ohio 5-8 unit DSCR page.
It has focused on smaller pre-1978 rentals. Ask the city whether it applies to your building.
Ohio taxes 35% of appraised value at local levy rates. Lucas County reappraises every six years.
No. Ohio preempts local rent control.
Yes. We finance 5-8 unit buildings throughout Lucas and Wood counties.
Often the owner. Include it in your budget if so.
On our DSCR programs, 1 to 8 units is residential. Nine or more units is commercial and is covered on our multifamily pages.
No. A DSCR loan qualifies on the property's rent. We do not collect W-2s or tax returns. The credit score minimum is 620.
You can bring more cash to lower the loan amount, or look at a sub-1.0 DSCR program if the numbers are close.
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