115 S Rocky River Dr

Berea, OH 44017

$114,900F

2 bd · 1.0 ba · 846 sqft · Built 1977 · Condo · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,170/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$192
• HOA: −$365
• Vac / Maint / Mgmt: −$246
• Net cashflow: $-235/mo
• Annual: $-2,820/yr
• Cap rate: 3.84%
• Cash-on-cash: -8.77%
• DSCR: 0.61
• 1% rule: 1.02%
• Cash to close: $32,172

Investor read

• This is a 2-bed/1.0-bath condo listed at $115k. Condition is rated poor.
• At list price, monthly cash flow is $-235 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $115k).
• It's been on market 34 days — a 3% lower offer ($111k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $111k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $794 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#136 in OH, #1,955 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities D, commute F.
• Berea City (suburban): math 47% / reading 56% proficiency, ranked #414 of 656 in OH (top 63%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Grindstone Elementary School (math 72% / reading 67%, grade A-, #391 of 1,584 statewide, top 27%, 642 students, 27% FRL); Berea-Midpark Middle School (math 43% / reading 52%, grade C-, #444 of 654 statewide, top 69%, 1,556 students, 0% FRL); Berea-Midpark High School (math 28% / reading 60%, grade F, #489 of 781 statewide, top 63%, 1,850 students, 29% FRL).
• Watch-outs: HOA is 31% of rent.
• Market conditions: 61 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 13d 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.
• 13 sale attempts since 24y ago; this cycle's ask is 18% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $94k; 23% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 3.8% vs local median 4.9% in Berea — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 34 days. Have you received any prior offers? Is the seller open to a 3% 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 1977 — 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?

Repairs flagged (vision-AI assessment)

• Major: kitchen appliances — Older and worn
• Major: bathroom fixtures — Older and worn
• Major: flooring — Worn and outdated
• Major: landscaping — Snow-covered and unkempt