Sequoia Plan

Springfield, OH 45503

$275,990F

4 bd · 2.5 ba · 1,749 sqft · Built — · SingleFamily · Active · 143 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,893/mo
• Mortgage (P&I): −$1,530
• Tax + insurance: −$486
• HOA: −$0
• Vac / Maint / Mgmt: −$398
• Net cashflow: $-521/mo
• Annual: $-6,253/yr
• Cap rate: 4.15%
• Cash-on-cash: -7.65%
• DSCR: 0.66
• 1% rule: 0.65%
• Cash to close: $81,698

Investor read

• This is a 4-bed/2.5-bath single-family listed at $276k. Condition is rated good.
• At list price, monthly cash flow is $-521 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (21.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (31.4% below list).
• It's been on market 143 days — a 12% lower offer ($243k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (31.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#1,108 in OH) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Clark-Shawnee Local (rural): math 54% / reading 62% proficiency, ranked #301 of 656 in OH (top 46%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Shawnee Elementary School (math 47% / reading 52%, grade D, #906 of 1,584 statewide, top 59%, 1,010 students, 46% FRL); Shawnee Middle School/High School (math 47% / reading 67%, grade C, #275 of 781 statewide, top 37%, 687 students, 46% FRL).
• Market conditions: 278 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 63d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 232 units permitted in Clark County in 2024 (116 in 5+ unit buildings).
• Clark County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• This rent runs 42% of the median local income ($55k/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 143 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.
• 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.