361 Granville St

Newark, OH 43055

$65,000D+

4 bd · 4.0 ba · 2,639 sqft · Built 1885 · MultiFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,481/mo
• Mortgage (P&I): −$341
• Tax + insurance: −$277
• HOA: −$0
• Vac / Maint / Mgmt: −$731
• Net cashflow: $2,132/mo
• Annual: $25,582/yr
• Cap rate: 45.65%
• Cash-on-cash: 140.56%
• DSCR: 7.25
• 1% rule: 5.36%
• Cash to close: $18,200

Investor read

• This is a 4 × 1-bed/?-bath units multifamily listed at $65k.
• At list price, monthly cash flow is $2k ($26k/yr) — positive. Per door: $533/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $65k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $449 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#493 in OH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, schools B; Watch: employment D+, amenities F, commute F.
• Newark City (suburban): math 48% / reading 56% proficiency, ranked #431 of 656 in OH (top 66%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: property tax is 4.6% of price; built in 1885 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.6%/yr); 204 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 159 units permitted in Licking County in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 1.6% rent growth), your $18k cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 45.6% vs local median 3.2% in Newark — 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 $3,481/mo this rent would consume 65% of the median local household income ($64k/yr) (locally 2269% 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 1885 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.