324 E Center St

Farmersville, OH 45325

$450,000D

8 bd · 3.0 ba · 3,914 sqft · Built 1998 · MultiFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,837/mo
• Mortgage (P&I): −$2,360
• Tax + insurance: −$765
• HOA: −$0
• Vac / Maint / Mgmt: −$806
• Net cashflow: $-94/mo
• Annual: $-1,128/yr
• Cap rate: 6.04%
• Cash-on-cash: -0.90%
• DSCR: 0.96
• 1% rule: 0.85%
• Cash to close: $126,000

Investor read

• This is a 8-bed/3.0-bath multifamily listed at $450k.
• At list price, monthly cash flow is $-94 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $433k (3.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $384k (14.7% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $384k (14.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#275 in OH, #4,528 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Valley View Local (suburban): math 54% / reading 69% proficiency, ranked #250 of 656 in OH (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Valley View Primary School (math 57% / reading 62%, grade B-, #670 of 1,584 statewide, top 45%, 571 students, 0% FRL); Valley View Intermediate School (math 59% / reading 67%, grade B+, #233 of 654 statewide, top 36%, 464 students, 32% FRL); Valley View High School (math 47% / reading 82%, grade B-, #164 of 781 statewide, top 24%, 453 students, 32% FRL).
• Market conditions: 16 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.
• At $3,837/mo this rent would consume 58% of the median local household income ($80k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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.
• 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.