205 N Water St

Masontown, PA 15461

$33,900B

3 bd · 1.0 ba · 1,744 sqft · Built 1912 · Other · Active · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,233/mo
• Mortgage (P&I): −$178
• Tax + insurance: −$56
• HOA: −$0
• Vac / Maint / Mgmt: −$259
• Net cashflow: $740/mo
• Annual: $8,880/yr
• Cap rate: 32.49%
• Cash-on-cash: 93.56%
• DSCR: 5.16
• 1% rule: 3.64%
• Cash to close: $9,492

Investor read

• This is a 3-bed/1.0-bath other listed at $34k.
• At list price, monthly cash flow is $740 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $34k).
• It's been on market 69 days — a 6% lower offer ($32k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $32k (6.0% below list) — sets the bar for market timing.
• In year one you build about $798 of equity ($234 loan paydown + $564 appreciation (1.7% local appreciation)).
• Location reads 65/100 on livability (#1,115 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Albert Gallatin Area SD (rural): math 26% / reading 46% proficiency, ranked #419 of 539 in PA (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Masontown El Sch (math 22% / reading 42%, grade F, #1,094 of 1,518 statewide, top 73%, 249 students, 100% FRL); Albert Gallatin South Ms (math 16% / reading 42%, grade F, #391 of 512 statewide, top 77%, 360 students, 100% FRL); Albert Gallatin Area Shs (math 48% / reading 50%, grade D, #151 of 437 statewide, top 35%, 964 students, 76% FRL) — zoned schools average 92% FRL vs 56% district-wide (36 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1912 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 19 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.
• At projected returns (1.7% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 69 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1912 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.