2745 S Conant Rd

Spencerville, OH 45887

$335,000C-

3 bd · 1.5 ba · 2,214 sqft · Built 1963 · SingleFamily · Under Contract · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,000/mo
• Mortgage (P&I): −$1,757
• Tax + insurance: −$305
• HOA: −$0
• Vac / Maint / Mgmt: −$630
• Net cashflow: $308/mo
• Annual: $3,697/yr
• Cap rate: 7.40%
• Cash-on-cash: 3.94%
• DSCR: 1.18
• 1% rule: 0.90%
• Cash to close: $93,800

Investor read

• This is a 3-bed/1.5-bath single-family listed at $335k.
• At list price, monthly cash flow is $308 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $300k (10.4% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $300k (10.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#518 in OH) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Spencerville Local (rural): math 72% / reading 73% proficiency, ranked #130 of 656 in OH (top 20%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Spencerville Elementary School (math 82% / reading 77%, grade A, #173 of 1,584 statewide, top 12%, 344 students, 99% FRL); Spencerville Middle School (math 69% / reading 70%, grade A, #143 of 654 statewide, top 23%, 304 students, 0% FRL); Spencerville High School (math 62% / reading 77%, grade B, #106 of 781 statewide, top 16%, 278 students, 0% FRL) — zoned schools at 33% FRL track the district average.
• Market conditions: 11 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 88 units permitted in Allen County in 2024 (0 in 5+ unit buildings).
• Allen County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $264k; 27% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At $3,000/mo this rent would consume 57% of the median local household income ($63k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Built in 1963 — 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.