221 Tower St SW

Beach City, OH 44608

$174,900B

5 bd · 3.0 ba · 2,528 sqft · Built 1949 · MultiFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,965/mo
• Mortgage (P&I): −$917
• Tax + insurance: −$345
• HOA: −$0
• Vac / Maint / Mgmt: −$833
• Net cashflow: $1,871/mo
• Annual: $22,447/yr
• Cap rate: 19.58%
• Cash-on-cash: 47.46%
• DSCR: 3.11
• 1% rule: 2.27%
• Cash to close: $48,972

Investor read

• This is a 2×2bd/1ba + 1×1bd/1ba units multifamily listed at $175k.
• At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $624/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $175k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#1,046 in OH) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D+, amenities F.
• Fairless Local (rural): math 56% / reading 55% proficiency, ranked #365 of 656 in OH (top 56%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Fairless Elementary School (math 65% / reading 54%, grade B-, #670 of 1,584 statewide, top 45%, 602 students, 41% FRL); Fairless Middle School (math 49% / reading 57%, grade C+, #372 of 654 statewide, top 58%, 316 students, 40% FRL); Fairless High School (math 47% / reading 52%, grade D, #390 of 781 statewide, top 54%, 343 students, 33% FRL) — zoned schools at 38% FRL track the district average.
• Watch-outs: flood insurance adds $66/mo; built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 528 units permitted in Stark County in 2024 (84 in 5+ unit buildings).
• Stark County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 11y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $86k; list at $175k implies a 103% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $49k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• At $3,965/mo this rent would consume 85% of the median local household income ($56k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Built in 1949 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.