226-230 N Broad St

Fairborn, OH 45324

$550,000C+

36 bd · 72.0 ba · 7,081 sqft · Built 1968 · MultiFamily · Pending · 348 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,490/mo
• Mortgage (P&I): −$2,884
• Tax + insurance: −$917
• HOA: −$0
• Vac / Maint / Mgmt: −$2,413
• Net cashflow: $5,276/mo
• Annual: $63,314/yr
• Cap rate: 17.80%
• Cash-on-cash: 41.11%
• DSCR: 2.83
• 1% rule: 2.09%
• Cash to close: $154,000

Investor read

• This is a 6 × 6-bed/?-bath units multifamily listed at $550k. Condition is rated fair.
• At list price, monthly cash flow is $5k ($63k/yr) — positive. Per door: $879/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $550k).
• It's been on market 348 days — a 12% lower offer ($484k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $484k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#374 in OH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, schools D+, employment D+.
• Fairborn City (suburban): math 36% / reading 49% proficiency, ranked #520 of 656 in OH (top 79%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+5.8%/yr); 180 active listings in the ZIP; 797 units permitted in Greene County in 2024 (148 in 5+ unit buildings).
• 11 sale attempts since 14y ago; this cycle's ask has dropped $150k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $140k; list at $550k implies a 293% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.8% rent growth), your $154k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 17.8% vs local median 3.7% in Fairborn — 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 $11,490/mo this rent would consume 212% of the median local household income ($65k/yr) (locally 1472% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 348 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1968 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Significant wear and tear
• Major: roof — Signs of wear and tear
• Major: flooring — Worn-out carpet
• Major: HVAC/mechanicals — No visible signs of recent maintenance