22350 Tracy Ave

Euclid, OH 44123

$85,000B+

3 bd · 2.0 ba · 1,262 sqft · Built 1924 · SingleFamily · Active · 120 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,412/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$251
• HOA: −$0
• Vac / Maint / Mgmt: −$296
• Net cashflow: $418/mo
• Annual: $5,017/yr
• Cap rate: 12.20%
• Cash-on-cash: 21.08%
• DSCR: 1.94
• 1% rule: 1.66%
• Cash to close: $23,800

Investor read

• This is a 3-bed/2.0-bath single-family listed at $85k. Condition is rated fair.
• At list price, monthly cash flow is $418 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• It's been on market 120 days — a 9% lower offer ($77k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $588 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#204 in OH, #3,149 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: commute F, employment D-.
• Euclid City (suburban): math 14% / reading 28% proficiency, ranked #625 of 656 in OH (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Arbor Elementary School (math 17% / reading 28%, grade F, #1,239 of 1,584 statewide, top 78%, 370 students, 0% FRL); Euclid Middle School (math 10% / reading 22%, grade F, #624 of 654 statewide, top 96%, 934 students, 0% FRL); Euclid High School (math 7% / reading 33%, grade F, #675 of 781 statewide, top 87%, 1,618 students, 0% FRL) — zoned schools average 0% FRL vs 70% district-wide (70 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 3.0% of price; built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.3%/yr); 186 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 53d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 65% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 9 sale attempts since 29y ago; this cycle's ask has dropped $16k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $24k; list at $85k implies a 251% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.3% rent growth), your $24k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 12.2% vs local median 6.4% in Euclid — 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 runs 30% of the median local income ($56k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 120 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1924 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible damage and potential leaks.
• Moderate: exterior siding — The exterior siding appears to be in fair condition, with some wear and tear visible.
• Major: flooring — The flooring in the interior appears to be in poor condition, with visible wear and tear.
• Moderate: interior walls/paint — The interior walls and paint appear to be in fair condition, with some wear and tear visible.