150 N Fraley St

Kane, PA 16735

$175,000B

5 bd · None ba · 11,190 sqft · Built 1950 · MultiFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,342/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$292
• HOA: −$0
• Vac / Maint / Mgmt: −$1,122
• Net cashflow: $3,011/mo
• Annual: $36,130/yr
• Cap rate: 26.94%
• Cash-on-cash: 73.73%
• DSCR: 4.28
• 1% rule: 3.05%
• Cash to close: $49,000

Investor read

• This is a 5-bed/?-bath multifamily listed at $175k. Condition is rated fair.
• At list price, monthly cash flow is $3k ($36k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $175k).
• It's been on market 24 days — a 2% lower offer ($172k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-2.7%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#901 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Kane Area SD (rural): math 35% / reading 54% proficiency, ranked #291 of 539 in PA (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Kane Area El Sch (math 37% / reading 51%, grade F, #858 of 1,518 statewide, top 57%, 433 students, 100% FRL); Kane Area Ms (math 22% / reading 57%, grade F, #268 of 512 statewide, top 53%, 222 students, 100% FRL); Kane Area Hs (math 67%, 329 students, 49% FRL) — zoned schools average 83% FRL vs 40% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 44 active listings in the ZIP; 29 units permitted in McKean County in 2024 (0 in 5+ unit buildings).
• McKean County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-2.7% appreciation + 3.0% rent growth), your $49k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 26.9% vs local median 5.6% in Kane — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1950 — 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of wear and discoloration suggest significant damage and potential leaks.
• Major: exterior siding — The siding is visibly worn and needs repainting or replacement.
• Major: landscaping — The landscaping is sparse and overgrown, detracting from the property's curb appeal.
• Major: HVAC/mechanicals — Given the overall condition, it's likely that the HVAC and other systems need updating or replacement.
• Major: flooring — The flooring is likely outdated and in poor condition, requiring replacement or updating.
• Major: interior walls/paint — The interior walls and paint are likely outdated and in poor condition, requiring updating or replacement.