The Highland Plan

Penn, PA 15675

$79,999D-

3 bd · 2.0 ba · 1,013 sqft · Built — · SingleFamily · Active · 168 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $958/mo
• Mortgage (P&I): −$751
• Tax + insurance: −$239
• HOA: −$0
• Vac / Maint / Mgmt: −$201
• Net cashflow: $-234/mo
• Annual: $-2,803/yr
• Cap rate: 4.34%
• Cash-on-cash: -6.99%
• DSCR: 0.69
• 1% rule: 0.67%
• Cash to close: $40,115

Investor read

• This is a 3-bed/2.0-bath single-family listed at $80k. Condition is rated excellent.
• At list price, monthly cash flow is $-234 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($958 rent vs $80k).
• It's been on market 168 days — a 12% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (12.0% below list) — sets the bar for market timing.
• In year one you build about $169 of equity ($990 loan paydown + $-821 appreciation (-0.6% local appreciation)).
• Location reads 56/100 on livability (#1,637 in PA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime D+, amenities F, commute F.
• Penn-Trafford SD (suburban): math 60% / reading 78% proficiency, ranked #27 of 539 in PA (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Penn Trafford Hs (math 89%, 1,263 students, 19% FRL) — zoned schools at 19% FRL track the district average.
• Watch-outs: property tax is 2.7% of price.
• Market conditions: 15 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 62d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; 415 units permitted in Westmoreland County in 2024 (10 in 5+ unit buildings).
• Westmoreland County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 4.3% vs local median 2.4% in Penn — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent is only 16% of the median local income ($72k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 168 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?