2556 Shakespeare Ln

Avon, OH 44011

$179,900D

2 bd · 1.5 ba · 960 sqft · Built 1973 · Townhouse · Active · 117 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,903/mo
• Mortgage (P&I): −$943
• Tax + insurance: −$243
• HOA: −$387
• Vac / Maint / Mgmt: −$400
• Net cashflow: $-70/mo
• Annual: $-842/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.67%
• DSCR: 0.93
• 1% rule: 1.06%
• Cash to close: $50,372

Investor read

• This is a 2-bed/1.5-bath townhouse listed at $180k.
• At list price, monthly cash flow is $-70 ($-842/yr) — negative.
• To cash-flow at today's rent, offer at most $168k (6.9% below list).
• Meets the 1% rule at list price ($2k rent vs $180k).
• It's been on market 117 days — a 9% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $164k (9.0% below list) — sets the bar for market timing.
• 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 72/100 on livability (#356 in OH) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Avon Local (suburban): math 77% / reading 84% proficiency, ranked #37 of 656 in OH (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Avon Heritage Elementary School (math 84% / reading 83%, grade A+, #96 of 1,584 statewide, top 6%, 972 students, 13% FRL); Avon Middle School (math 75% / reading 83%, grade A+, #54 of 654 statewide, top 9%, 1,084 students, 11% FRL); Avon High School (math 65% / reading 86%, grade A-, #65 of 781 statewide, top 8%, 1,456 students, 9% FRL) — zoned schools at 11% FRL track the district average.
• Watch-outs: HOA is 20% of rent.
• Market conditions: 130 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 1,098 units permitted in Lorain County in 2024 (20 in 5+ unit buildings).
• Current owner paid $120k; 50% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.8% vs local median 2.3% in Avon — 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 is only 17% of the median local income ($136k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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?
• It's been on market 117 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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?