1236-1238 Bowen Cir NW

Perry Heights, OH 44708

$279,000D

4 bd · 3.0 ba · 2,072 sqft · Built 1976 · MultiFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,312/mo
• Mortgage (P&I): −$1,463
• Tax + insurance: −$364
• HOA: −$0
• Vac / Maint / Mgmt: −$486
• Net cashflow: $-1/mo
• Annual: $-6/yr
• Cap rate: 6.29%
• Cash-on-cash: -0.01%
• DSCR: 1.00
• 1% rule: 0.83%
• Cash to close: $78,120

Investor read

• This is a 2 × 2-bed/2.5-bath units multifamily listed at $279k.
• At list price, monthly cash flow is $-1 ($-6/yr) — negative. Per door: $0/mo.
• To cash-flow at today's rent, offer at most $279k (0.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $231k (17.1% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $231k (17.1% 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 $8k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#575 in OH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Zoned schools: T C Knapp Elementary School (math 82% / reading 72%, grade A, #221 of 1,584 statewide, top 16%, 416 students, 24% FRL); Edison Middle School (math 61% / reading 75%, grade A-, #155 of 654 statewide, top 24%, 689 students, 37% FRL); Perry High School (math 36% / reading 72%, grade C-, #331 of 781 statewide, top 43%, 1,478 students, 30% FRL).
• Market conditions: Rents rising fast (+6.7%/yr); 124 active listings in the ZIP; 528 units permitted in Stark County in 2024 (84 in 5+ unit buildings).
• Stark County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Cap rate 6.3% vs local median 2.7% in Perry Heights — 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 44% of the median local income ($64k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• 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 1976 — 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.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.