Somerville Plan

Sunbury, OH 43074

$225,250F

3 bd · 2.0 ba · 1,548 sqft · Built — · SingleFamily · Active · 802 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,191/mo
• Mortgage (P&I): −$2,413
• Tax + insurance: −$767
• HOA: −$0
• Vac / Maint / Mgmt: −$460
• Net cashflow: $-1,449/mo
• Annual: $-17,391/yr
• Cap rate: 2.51%
• Cash-on-cash: -13.50%
• DSCR: 0.40
• 1% rule: 0.48%
• Cash to close: $128,847

Investor read

• This is a 3-bed/2.0-bath single-family listed at $225k. Condition is rated poor.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $219k (2.7% below list).
• It's been on market 802 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (12.0% 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 74/100 on livability (#274 in OH, #4,498 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Olentangy Local (rural): math 81% / reading 84% proficiency, ranked #18 of 656 in OH (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Johnnycake Corners Elementary School (math 81% / reading 83%, grade A+, #116 of 1,584 statewide, top 9%, 686 students, 2% FRL); Berkshire Middle School (math 80% / reading 80%, grade A+, #46 of 654 statewide, top 7%, 1,298 students, 4% FRL); Olentangy High School (math 76% / reading 90%, grade A, #21 of 781 statewide, top 3%, 1,688 students, 6% FRL) — zoned schools at 4% FRL track the district average.
• Watch-outs: property tax is 3.1% of price.
• Market conditions: Rents flat; 325 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); 43% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 2,233 units permitted in Delaware County in 2024 (304 in 5+ unit buildings).
• Delaware County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 2y ago; this cycle's ask is 5% above the opening price — seller raised mid-cycle; expect resistance to lowballs.

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 802 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The independent image shows significant damage to the roof.
• Major: siding — The independent image shows significant damage to the siding.
• Major: landscaping — The independent image shows a poorly maintained lawn and landscaping. The listing photo shows a well-maintained home, but the independent image suggests a lack of recent landscaping work.
• Major: exterior paint — The independent image shows significant damage to the exterior paint. The listing photo shows a well-maintained home, but the independent image suggests a lack of recent exterior painting.
• Major: HVAC/mechanicals — No photos of HVAC/mechanicals are provided, but the exterior suggests a lack of recent maintenance.
• Major: interior paint — No interior photos are provided, but the exterior suggests a lack of recent maintenance.