940 Peters Mountain Rd

Middle Paxton, PA 17018

$125,000C-

2 bd · 2.0 ba · 1,740 sqft · Built 1933 · MultiFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,402/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$282
• HOA: −$0
• Vac / Maint / Mgmt: −$294
• Net cashflow: $170/mo
• Annual: $2,039/yr
• Cap rate: 7.92%
• Cash-on-cash: 5.83%
• DSCR: 1.26
• 1% rule: 1.12%
• Cash to close: $35,000

Investor read

• This is a 2-bed/2.0-bath multifamily listed at $125k.
• At list price, monthly cash flow is $170 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $125k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Central Dauphin SD (suburban): math 30% / reading 52% proficiency, ranked #305 of 539 in PA (top 57%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Middle Paxton El Sch (math 52% / reading 67%, grade B-, #377 of 1,518 statewide, top 28%, 263 students, 31% FRL); Central Dauphin Ms (math 27% / reading 66%, grade D+, #172 of 512 statewide, top 35%, 848 students, 33% FRL); Central Dauphin Shs (math 71% / reading 24%, grade D, #164 of 437 statewide, top 38%, 1,975 students, 33% FRL) — zoned schools at 32% FRL track the district average.
• Watch-outs: built in 1933 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 25 active listings in the ZIP; 540 units permitted in Dauphin County in 2024 (194 in 5+ unit buildings).
• 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.

Questions for listing agent

• Built in 1933 — 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.