16 Harris Ave

Norwalk, OH 44857

$140,000B-

3 bd · 2.0 ba · 1,063 sqft · Built 2000 · MultiFamily · Active Under Contract · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,821/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$139
• HOA: −$0
• Vac / Maint / Mgmt: −$382
• Net cashflow: $566/mo
• Annual: $6,787/yr
• Cap rate: 11.14%
• Cash-on-cash: 17.32%
• DSCR: 1.77
• 1% rule: 1.30%
• Cash to close: $39,200

Investor read

• This is a 1×2bd/1.0ba + 1×1bd/1.0ba units multifamily listed at $140k.
• At list price, monthly cash flow is $566 ($7k/yr) — positive. Per door: $283/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#120 in OH, #1,771 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, commute F.
• Norwalk City (town): math 59% / reading 64% proficiency, ranked #279 of 656 in OH (top 42%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Maplehurst Elementary School (467 students, 32% FRL); Norwalk Middle School (math 52% / reading 59%, grade B-, #321 of 654 statewide, top 51%, 404 students, 35% FRL); Norwalk High School (math 37% / reading 68%, grade C-, #340 of 781 statewide, top 44%, 739 students, 29% FRL).
• Market conditions: 52 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 40 units permitted in Huron County in 2024 (0 in 5+ unit buildings).
• Huron County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $65k; list at $140k implies a 115% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.1% vs local median 4.0% in Norwalk — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent runs 34% of the median local income ($64k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.