407 E 2nd St

Ottawa, OH 45875

$170,000D+

4 bd · 4.0 ba · 1,400 sqft · Built 1900 · MultiFamily · Active · 59 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,626/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$406
• HOA: −$0
• Vac / Maint / Mgmt: −$341
• Net cashflow: $-13/mo
• Annual: $-151/yr
• Cap rate: 7.07%
• Cash-on-cash: 2.77%
• DSCR: 1.12
• 1% rule: 0.96%
• Cash to close: $47,600

Investor read

• This is a 2 × 2-bed/2.0-bath units multifamily listed at $170k. Condition is rated fair.
• At list price, monthly cash flow is $-13 ($-151/yr) — negative. Per door: $-6/mo.
• To cash-flow at today's rent, offer at most $168k (1.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $163k (4.4% below list).
• It's been on market 59 days — a 3% lower offer ($165k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $163k (4.4% below list) — sets the bar for 1% rule.
• 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 80/100 on livability (#114 in OH, #1,709 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, health & safety A+, crime A; Watch: amenities D-, commute F, employment D-.
• Ottawa-Glandorf Local (town): math 73% / reading 76% proficiency, ranked #99 of 656 in OH (top 15%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Ottawa Elementary School (math 58% / reading 64%, grade B, #652 of 1,584 statewide, top 41%, 441 students, 37% FRL); Ottawa-Glandorf High School (math 57% / reading 82%, grade B, #106 of 781 statewide, top 16%, 537 students, 12% FRL) — zoned schools at 25% FRL track the district average.
• Watch-outs: flood insurance adds $122/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 27 active listings in the ZIP; solid renter incomes; 41 units permitted in Putnam County in 2024 (0 in 5+ unit buildings).
• Putnam County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

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 59 days. Have you received any prior offers? Is the seller open to a 4% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.

Repairs flagged (vision-AI assessment)

• Moderate: Siding — Worn appearance
• Major: Flooring — Carpeted floors in living areas
• Major: Paint — Painted walls, some wear