5872 Main St

Peninsula, OH 44264

$250,000D

2 bd · 1.0 ba · 1,205 sqft · Built 1919 · SingleFamily · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,032/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$355
• HOA: −$0
• Vac / Maint / Mgmt: −$427
• Net cashflow: $-61/mo
• Annual: $-726/yr
• Cap rate: 6.00%
• Cash-on-cash: -1.04%
• DSCR: 0.95
• 1% rule: 0.81%
• Cash to close: $70,000

Investor read

• This is a 2-bed/1.0-bath single-family listed at $250k.
• At list price, monthly cash flow is $-61 ($-726/yr) — negative.
• To cash-flow at today's rent, offer at most $239k (4.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $203k (18.7% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $203k (18.7% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($2k loan paydown + $6k appreciation (2.4% local appreciation)).
• Location reads 65/100 on livability (#707 in OH) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: cost of living D+, crime F, amenities F.
• Woodridge Local (rural): math 49% / reading 59% proficiency, ranked #379 of 656 in OH (top 58%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Woodridge Elementary School (math 53% / reading 59%, grade C+, #766 of 1,584 statewide, top 49%, 861 students, 48% FRL); Woodridge Middle School (math 40% / reading 54%, grade D+, #451 of 654 statewide, top 70%, 424 students, 47% FRL); Woodridge High School (math 57% / reading 77%, grade B, #137 of 781 statewide, top 19%, 637 students, 28% FRL) — zoned schools at 41% FRL track the district average.
• Watch-outs: built in 1919 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 25 active listings in the ZIP; high-income renter base; 1,114 units permitted in Summit County in 2024 (397 in 5+ unit buildings).
• Summit County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts 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 $208k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (2.4% appreciation + 3.0% rent growth), your $70k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1919 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is F 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.