893 Maxwell Ave

Millersburg, OH 44654

$205,000D

3 bd · 1.5 ba · 1,440 sqft · Built 1880 · SingleFamily · Active · 111 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,196/mo
• Mortgage (P&I): −$1,075
• Tax + insurance: −$189
• HOA: −$0
• Vac / Maint / Mgmt: −$251
• Net cashflow: $-319/mo
• Annual: $-3,833/yr
• Cap rate: 4.42%
• Cash-on-cash: -6.68%
• DSCR: 0.70
• 1% rule: 0.58%
• Cash to close: $57,400

Investor read

• This is a 3-bed/1.5-bath single-family listed at $205k.
• At list price, monthly cash flow is $-319 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $149k (27.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (41.7% below list).
• It's been on market 111 days — a 9% lower offer ($187k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $120k (41.7% below list) — sets the bar for 1% rule.
• In year one you build about $22k of equity ($1k loan paydown + $20k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#445 in OH) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• West Holmes Local (rural): math 60% / reading 62% proficiency, ranked #283 of 656 in OH (top 43%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Millersburg Elementary School (math 72% / reading 62%, grade B+, #456 of 1,584 statewide, top 31%, 379 students, 36% FRL); West Holmes Middle School (math 59% / reading 61%, grade B, #266 of 654 statewide, top 41%, 409 students, 35% FRL); West Holmes High School (math 42% / reading 62%, grade D+, #343 of 781 statewide, top 47%, 540 students, 28% FRL) — zoned schools at 33% FRL track the district average.
• Watch-outs: built in 1880 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 61 active listings in the ZIP; solid renter incomes; 8 units permitted in Holmes County in 2024 (0 in 5+ unit buildings).
• Holmes County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 21y ago; this cycle's ask has dropped $20k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $135k; list at $205k implies a 52% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 111 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• Built in 1880 — 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.
• 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?
• 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.