ARLINGTON 106 Melrose Village Plan

Wooster, OH 44691

$86,000B

3 bd · 2.0 ba · 1,216 sqft · Built — · Manufactured · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,733/mo
• Mortgage (P&I): −$451
• Tax + insurance: −$143
• HOA: −$0
• Vac / Maint / Mgmt: −$364
• Net cashflow: $775/mo
• Annual: $9,295/yr
• Cap rate: 17.10%
• Cash-on-cash: 38.60%
• DSCR: 2.72
• 1% rule: 2.01%
• Cash to close: $24,080

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $86k. Condition is rated good.
• At list price, monthly cash flow is $775 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $86k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $595 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#195 in OH, #3,001 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D+, amenities D-, commute F.
• Wooster City (town): math 47% / reading 57% proficiency, ranked #422 of 656 in OH (top 64%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Kean Elementary School (math 67% / reading 67%, grade B+, #456 of 1,584 statewide, top 31%, 324 students, 26% FRL); Edgewood Middle School (math 47% / reading 56%, grade C, #401 of 654 statewide, top 62%, 721 students, 45% FRL); Wooster High School (math 38% / reading 60%, grade D, #422 of 781 statewide, top 54%, 1,227 students, 40% FRL) — zoned schools at 37% FRL track the district average.
• Market conditions: Rents rising fast (+8.4%/yr); 155 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 284 units permitted in Wayne County in 2024 (42 in 5+ unit buildings).
• Wayne County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 17.1% vs local median 3.3% in Wooster — 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.

Questions for listing agent

• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.