376 Penn Ave

Upper Tyrone, PA 15631

$40,000B

4 bd · 2.0 ba · 1,680 sqft · Built — · SingleFamily · Active · 71 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,102/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$122
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $539/mo
• Annual: $6,463/yr
• Cap rate: 24.12%
• Cash-on-cash: 63.65%
• DSCR: 3.83
• 1% rule: 2.75%
• Cash to close: $11,200

Investor read

• This is a 4-bed/2.0-bath single-family listed at $40k. Condition is rated poor.
• At list price, monthly cash flow is $539 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 71 days — a 6% lower offer ($38k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $38k (6.0% below list) — sets the bar for market timing.
• In year one you build about $242 of equity ($277 loan paydown + $-35 appreciation (-0.1% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Southmoreland SD (suburban): math 29% / reading 51% proficiency, ranked #359 of 539 in PA (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Southmoreland El Sch (math 29% / reading 51%, grade F, #942 of 1,518 statewide, top 62%, 546 students, 58% FRL); Southmoreland Ms (math 15% / reading 50%, grade F, #355 of 512 statewide, top 70%, 414 students, 54% FRL); Southmoreland Shs (math 62% / reading 24%, grade F, #215 of 437 statewide, top 50%, 584 students, 42% FRL).
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 5 active listings in the ZIP; 201 units permitted in Fayette County in 2024 (10 in 5+ unit buildings).
• Fayette County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-0.1% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 71 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exposed plumbing in kitchen — Needs full replacement
• Major: Exposed plumbing in bathroom — Needs full replacement
• Major: Exposed roof beams — Needs full roof replacement
• Major: Exposed siding — Needs full siding replacement
• Major: Exposed drywall — Needs full drywall replacement
• Major: Exposed ductwork — Needs full HVAC replacement