241 5th St NW

Barberton, OH 44203

$179,900B

4 bd · 2.0 ba · 1,687 sqft · Built 1906 · MultiFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,710/mo
• Mortgage (P&I): −$943
• Tax + insurance: −$177
• HOA: −$0
• Vac / Maint / Mgmt: −$569
• Net cashflow: $1,021/mo
• Annual: $12,250/yr
• Cap rate: 13.10%
• Cash-on-cash: 24.32%
• DSCR: 2.08
• 1% rule: 1.51%
• Cash to close: $50,372

Investor read

• This is a 2 × 3-bed/1.0-bath units multifamily listed at $180k.
• At list price, monthly cash flow is $1k ($12k/yr) — positive. Per door: $510/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $180k).
• It's been on market 66 days — a 6% lower offer ($169k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $169k (6.0% 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 71/100 on livability (#428 in OH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, amenities F, commute F.
• Barberton City (suburban): math 47% / reading 51% proficiency, ranked #466 of 656 in OH (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Barberton Primary School (math 56% / reading 51%, grade C, #834 of 1,584 statewide, top 53%, 762 students, 0% FRL); Barberton Middle School (math 45% / reading 50%, grade C-, #444 of 654 statewide, top 69%, 797 students, 72% FRL); Barberton High School (math 33% / reading 57%, grade D-, #468 of 781 statewide, top 60%, 1,220 students, 60% FRL) — zoned schools average 44% FRL vs 62% district-wide (18 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1906 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.9%/yr); 226 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); 1,114 units permitted in Summit County in 2024 (397 in 5+ unit buildings).
• Summit County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $53k; list at $180k implies a 241% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.9% rent growth), your $50k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 13.1% vs local median 6.0% in Barberton — 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 $2,710/mo this rent would consume 51% of the median local household income ($64k/yr) (locally 805% 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 66 days. Have you received any prior offers? Is the seller open to a 6% 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?
• Built in 1906 — 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.
• 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.