2426 Lander Rd

Pepper Pike, OH 44124

$500,000D

3 bd · 2.0 ba · 1,866 sqft · Built 1956 · SingleFamily · Active · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,460/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$879
• HOA: −$0
• Vac / Maint / Mgmt: −$727
• Net cashflow: $-768/mo
• Annual: $-9,217/yr
• Cap rate: 4.45%
• Cash-on-cash: -6.58%
• DSCR: 0.71
• 1% rule: 0.69%
• Cash to close: $140,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $500k.
• At list price, monthly cash flow is $-768 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $364k (27.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $346k (30.8% below list).
• It's been on market 51 days — a 3% lower offer ($485k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $346k (30.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#429 in OH) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F, cost of living F.
• Orange City (suburban): math 76% / reading 83% proficiency, ranked #32 of 656 in OH (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 11% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.5%/yr); 178 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,441 units permitted in Cuyahoga County in 2024 (700 in 5+ unit buildings).
• Cuyahoga County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 5 sale attempts since 21y ago; this cycle's ask has dropped $69k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $235k; list at $500k implies a 113% gain — meaningful room to come down on a strong offer.
• Cap rate 4.4% vs local median 0.5% in Pepper Pike — 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.
• At $3,460/mo this rent would consume 50% of the median local household income ($82k/yr) (locally 1286% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 51 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1956 — 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?
• 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.