12029 Clifton Blvd #505

Lakewood, OH 44107

$89,000D

2 bd · 1.5 ba · 836 sqft · Built 1965 · Condo · Pending · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,328/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$183
• HOA: −$675
• Vac / Maint / Mgmt: −$279
• Net cashflow: $-276/mo
• Annual: $-3,315/yr
• Cap rate: 2.57%
• Cash-on-cash: -13.30%
• DSCR: 0.41
• 1% rule: 1.49%
• Cash to close: $24,920

Investor read

• This is a 2-bed/1.5-bath condo listed at $89k.
• At list price, monthly cash flow is $-276 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $40k (54.8% below list).
• Meets the 1% rule at list price ($1k rent vs $89k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $40k (54.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#29 in OH, #249 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Lakewood City (suburban): math 60% / reading 71% proficiency, ranked #213 of 656 in OH (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Emerson Elementary School (math 67% / reading 62%, grade B, #522 of 1,584 statewide, top 36%, 335 students, 38% FRL); Garfield Middle School (math 55% / reading 62%, grade B, #287 of 654 statewide, top 45%, 454 students, 45% FRL); Lakewood High School (math 32% / reading 64%, grade D, #429 of 781 statewide, top 55%, 1,382 students, 30% FRL).
• Watch-outs: HOA is 51% of rent.
• Market conditions: Rents rising fast (+5.4%/yr); 203 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); 1,441 units permitted in Cuyahoga County in 2024 (700 in 5+ unit buildings).
• Cuyahoga County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 31y 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 $46k; list at $89k implies a 96% gain — meaningful room to come down on a strong offer.

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?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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.