27500 Cedar Rd #403

Beachwood, OH 44122

$175,000D

2 bd · 3.0 ba · 2,108 sqft · Built 1979 · Condo · Pending · 229 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,287/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$471
• HOA: −$2,528
• Vac / Maint / Mgmt: −$690
• Net cashflow: $-1,320/mo
• Annual: $-15,840/yr
• Cap rate: -2.76%
• Cash-on-cash: -32.33%
• DSCR: -0.44
• 1% rule: 1.88%
• Cash to close: $49,000

Investor read

• This is a 2-bed/3.0-bath condo listed at $175k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $10k (94.3% below list).
• Meets the 1% rule at list price ($3k rent vs $175k).
• It's been on market 229 days — a 12% lower offer ($154k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $10k (94.3% below list) — sets the bar for cash-flow.
• 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 84/100 on livability (#54 in OH, #756 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, crime A-; Watch: cost of living C-, amenities D.
• Beachwood City (suburban): math 79% / reading 89% proficiency, ranked #31 of 656 in OH (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Hilltop Elementary School (math 84% / reading 89%, grade A+, #55 of 1,584 statewide, top 4%, 328 students, 10% FRL); Beachwood Middle School (math 78% / reading 89%, grade A+, #25 of 654 statewide, top 4%, 304 students, 10% FRL); Beachwood High School (math 62% / reading 87%, grade B+, #69 of 781 statewide, top 10%, 587 students, 10% FRL) — zoned schools at 10% FRL track the district average.
• Watch-outs: property tax is 2.7% of price; HOA is 77% of rent.
• Market conditions: Rents rising (+1.1%/yr); 183 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 0d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 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.
• 6 sale attempts since 24y ago; this cycle's ask has dropped $110k (39%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate -2.8% vs local median 2.6% in Beachwood — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent runs 39% of the median local income ($101k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 229 days. Have you received any prior offers? Is the seller open to a 94% concession, seller financing, or rate buy-down credit?
• Built in 1979 — 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?
• 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?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.