11-Unit Multifamily | London, OH | 6.9% Cap | $675K
Hey BP — full disclosure, I'm the broker. Posting to pressure-test the deal with operators who know Central Ohio tertiary markets.
The Asset:
- 11 units, two buildings on one parcel in London, OH (~25 miles SW of Columbus, I-70 corridor)
- Built 1930, 4,500 SF, 91% occupied
- 7 of 8 Walnut units renovated, both roofs new in last 3 years
The Numbers:
- List: $675K ($61,364/door)
- T12 NOI: $46,692 | In-Going Cap: 6.9%
- ~$200K down at 75% LTV, 1.91x Year 1 DSCR
- Pro forma: 14% avg cash-on-cash, 15.4% IRR, 1.82x equity multiple
The Story:
Three execution levers: three Walnut units rolling at higher rents in the buyer's first 90 days (Unit F already turned, leasing 5/22 at $700 vs. prior $610), a vacant 1,212 SF 2BR at the High Street building with a seller renovation credit at closing plus a 6-month leaseback at $900, and a RUBS implementation opportunity. Underwriting is conservative on the 2BR — models it at $950 but should rent $1,050+.
Honest Tradeoffs:
1930s building, so inspection will find things. Tertiary exit liquidity is thinner than Columbus core. Workforce housing tenant base — turnover is part of the business.
Looking For:
Operator feedback on:
1. Studio rent comps in London — do $745 pro forma rents hold up?
2. Realistic budget for a 1,212 SF 2BR turn in tertiary Ohio?
3. Where community bank rates are actually landing on sub-$1M Central Ohio multifamily
Happy to DM the full OM and model to anyone seriously interested.