659 W Broadway

Red Lion, PA 17356

$149,900B-

3 bd · 2.5 ba · 1,526 sqft · Built 1920 · Townhouse · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,764/mo
• Mortgage (P&I): −$786
• Tax + insurance: −$282
• HOA: −$0
• Vac / Maint / Mgmt: −$370
• Net cashflow: $325/mo
• Annual: $3,901/yr
• Cap rate: 8.90%
• Cash-on-cash: 9.29%
• DSCR: 1.41
• 1% rule: 1.18%
• Cash to close: $41,972

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $150k.
• At list price, monthly cash flow is $325 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $150k).
• It's been on market 16 days — a 2% lower offer ($148k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $148k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#349 in PA, #3,056 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D, commute F.
• Red Lion Area SD (suburban): math 36% / reading 50% proficiency, ranked #282 of 539 in PA (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mazie Gable El Sch (math 23% / reading 39%, grade F, #1,116 of 1,518 statewide, top 74%, 523 students, 73% FRL); Red Lion Area Jhs (math 23% / reading 49%, grade F, #313 of 512 statewide, top 62%, 813 students, 50% FRL); Red Lion Area Shs (math 63% / reading 24%, grade F, #211 of 437 statewide, top 48%, 1,432 students, 44% FRL) — zoned schools average 56% FRL vs 28% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 147 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,328 units permitted in York County in 2024 (338 in 5+ unit buildings).
• Current owner paid $50k; list at $150k implies a 199% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.9% vs local median 4.5% in Red Lion — 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.

Questions for listing agent

• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.