Deal Analysis: 4-Plex in Tallmadge, OH – $195K Purchase Price

[Rereloluwa Fatunmbi]

Hi BP Community,

I’m an out-of-state investor based in Austin, TX, but I already own two single-family rentals in Akron (44305 & 44306). I just went under contract for a quadplex in Tallmadge, OH and I’d love your feedback before moving forward.

Financing Plan: Finance with a DSCR loan (OfferMarket).

Deal at a Glance:

Item	Value
Purchase Price	$195,000
Units	1/1, 1/1, 2/1, Studio
Current Occupied Rent	$2,065/mo (3 units)
Pro Forma Rent (all units)	~$3,165/mo (if 2/1 rents for $1,100)
Gross Rent (Annual)	$24,780 (current) → $38,880 (stabilized)
Seller-Stated Updates	2x New roofs, 1 New HWT, Electrical cleanup, Repaired stairs, Unit updates
Cash-on-Cash Return (current)	~15%
Cash-on-Cash Return (stabilized)	~44%
Lot Size	1.5 acres

Questions I’d Love Feedback On:

1. Utility Setup:
   Seller claims utilities are passed through to tenants, but there’s only one meter.

   • - How do landlords usually handle this in similar setups?

   • - Is this a red flag? Should I budget utilities as part of my expenses? If so, what’s a safe monthly estimate for Northeast Ohio?

2. Financing Strategy:

   • - Does a DSCR loan make sense here given prepayment penalties and the likelihood of falling interest rates in the next 12–18 months?

   • - Would you consider another financing option first (e.g., bridge loan, local bank portfolio loan, conventional)?

3. Deal Evaluation:

   • - Is $195K a reasonable purchase price given condition, recent updates, and current rents?

   • - Would you consider this a good buy, fair buy, or a pass?

4. Rent Potential:

   • - Are the rent projections for the vacant 2/1 realistic ($1,100–$1,200)?

   • - What would you expect total stabilized rents to be in Tallmadge for a mix of 1/1s, studio, and a 2/1?

5. Neighborhood/Exit Strategy:

   • - For those who know Tallmadge: how would you classify this neighborhood (A/B/C)?

   • - Long-term, would you hold this as a cash-flowing rental, reposition to increase NOI, or look at resale once stabilized?

6. Other Considerations:

   • - What hidden costs should I watch for in an older multifamily like this (1940s build)?

   • - With a 1.5 acre lot, any thoughts on long-term value-add potential (additional units, storage, parking, etc.)?

[Jill F.]

Tallmadge is a nice area with good schools. 50k per unit in Tallmadge is a good price especially if the property condition is decent. One meter with shared utilities is never ideal but at that price it probably wouldn't be a deal killer for me. I would have to see pictures and sq footage to take a stab at potential rent but 1100-1200 is should be doable  for a 2-1 unless it is really tired or small. Snowplowing and landscaping could be a pita if you can't make it the tenant responsibility. if the plumbing is galvanized that will be troublesome, cast iron stacks will be end of life. Hopefully you don't have knob and tube electrical. I use main street bank and cvista for financing but I don't know if they deal with out of state investors.