224 Ridgeway Ave

Southgate, KY 41071

$474,000C-

6 bd · 4.0 ba · 3,552 sqft · Built 1953 · MultiFamily · Active · 100 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,405/mo
• Mortgage (P&I): −$2,486
• Tax + insurance: −$294
• HOA: −$0
• Vac / Maint / Mgmt: −$925
• Net cashflow: $700/mo
• Annual: $8,398/yr
• Cap rate: 8.06%
• Cash-on-cash: 6.33%
• DSCR: 1.28
• 1% rule: 0.93%
• Cash to close: $132,720

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $474k.
• At list price, monthly cash flow is $700 ($8k/yr) — positive. Per door: $350/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $440k (7.1% below list).
• It's been on market 100 days — a 9% lower offer ($431k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $431k (9.0% below list) — sets the bar for market timing.
• 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 85/100 on livability (#45 in KY, #513 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, cost of living A+; Watch: amenities F.
• Southgate Independent (suburban): math 35% / reading 55% proficiency, ranked #119 of 173 in KY (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Southgate Public School (math 12% / reading 32%, grade F, #525 of 676 statewide, top 82%, 207 students, 87% FRL) — zoned schools average 87% FRL vs 60% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 22% at this address vs 45% district-wide (-23 pts) — the specific schools serving this property underperform the Southgate Independent average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.6%/yr); 239 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 247 units permitted in Campbell County in 2024 (77 in 5+ unit buildings).
• 8 sale attempts since 22y 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 $214k; list at $474k implies a 121% gain — meaningful room to come down on a strong offer.
• Cap rate 8.1% vs local median 4.1% in Southgate — 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 $4,405/mo this rent would consume 88% of the median local household income ($60k/yr) (locally 1136% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 100 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• 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 1953 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.