1130-1136 Stoney Springs Rd

Vandalia, OH 45377

$405,000B

24 bd · 4.0 ba · 3,528 sqft · Built 1976 · MultiFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,981/mo
• Mortgage (P&I): −$2,124
• Tax + insurance: −$760
• HOA: −$0
• Vac / Maint / Mgmt: −$1,256
• Net cashflow: $1,841/mo
• Annual: $22,094/yr
• Cap rate: 11.75%
• Cash-on-cash: 19.48%
• DSCR: 1.87
• 1% rule: 1.48%
• Cash to close: $113,400

Investor read

• This is a 4 × 6-bed/4.0-bath units multifamily listed at $405k.
• At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $460/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $405k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#463 in OH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: amenities F, commute F, health & safety F.
• Vandalia-Butler City (suburban): math 59% / reading 66% proficiency, ranked #239 of 656 in OH (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Smith Middle School (math 73% / reading 70%, grade A-, #364 of 1,584 statewide, top 23%, 453 students, 32% FRL); Morton Middle School (math 55% / reading 61%, grade B, #297 of 654 statewide, top 46%, 715 students, 29% FRL); Butler High School (math 32% / reading 71%, grade D+, #371 of 781 statewide, top 48%, 860 students, 26% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: 94 active listings in the ZIP; solid renter incomes; 907 units permitted in Montgomery County in 2024 (416 in 5+ unit buildings).
• Montgomery County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $127k; list at $405k implies a 219% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $113k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.7% vs local median 2.8% in Vandalia — 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 $5,981/mo this rent would consume 93% of the median local household income ($77k/yr) (locally 341% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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.
• Schools are B-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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.