Clayton 204 Sunny Acres Plan

Somerset, PA 15501

$90,000F

3 bd · 2.0 ba · 1,568 sqft · Built — · Manufactured · Active · 176 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $712/mo
• Mortgage (P&I): −$763
• Tax + insurance: −$243
• HOA: −$0
• Vac / Maint / Mgmt: −$150
• Net cashflow: $-443/mo
• Annual: $-5,322/yr
• Cap rate: 2.64%
• Cash-on-cash: -13.05%
• DSCR: 0.42
• 1% rule: 0.49%
• Cash to close: $40,765

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $90k. Condition is rated good.
• At list price, monthly cash flow is $-443 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $81k (9.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $71k (20.9% below list).
• It's been on market 176 days — a 12% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $71k (20.9% below list) — sets the bar for 1% rule.
• 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 66/100 on livability (#1,031 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A, housing B+; Watch: amenities F, commute F, employment D-.
• Somerset Area SD (town): math 40% / reading 61% proficiency, ranked #185 of 539 in PA (top 34%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Maple Ridge El Sch (522 students, 53% FRL); Somerset Area Jr-Sr Hs (math 39% / reading 66%, grade C-, #110 of 437 statewide, top 25%, 1,088 students, 44% FRL).
• Market conditions: 131 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 78 units permitted in Somerset County in 2024 (0 in 5+ unit buildings).
• Somerset County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• This rent is only 15% of the median local income ($56k/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 176 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?
• 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.