223 Lafayette Ave

Collingdale, PA 19023

$217,900D+

3 bd · 1.0 ba · 1,280 sqft · Built 1930 · SingleFamily · Active · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,946/mo
• Mortgage (P&I): −$1,143
• Tax + insurance: −$420
• HOA: −$0
• Vac / Maint / Mgmt: −$409
• Net cashflow: $-25/mo
• Annual: $-305/yr
• Cap rate: 6.15%
• Cash-on-cash: -0.50%
• DSCR: 0.98
• 1% rule: 0.89%
• Cash to close: $61,012

Investor read

• This is a 3-bed/1.0-bath single-family listed at $218k.
• At list price, monthly cash flow is $-25 ($-305/yr) — negative.
• To cash-flow at today's rent, offer at most $213k (2.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $195k (10.7% below list).
• It's been on market 61 days — a 6% lower offer ($205k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (10.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#105 in PA, #781 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, amenities D.
• Southeast Delco SD (suburban): math 13% / reading 33% proficiency, ranked #478 of 539 in PA (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Darby Twp Sch (math 7% / reading 34%, grade F, #1,243 of 1,518 statewide, top 82%, 614 students, 100% FRL); Academy Park Hs (math 31% / reading 39%, grade F, #311 of 437 statewide, top 71%, 1,355 students, 95% FRL) — zoned schools average 97% FRL vs 63% district-wide (34 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+13.1%/yr); 98 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 299 units permitted in Delaware County in 2024 (5 in 5+ unit buildings).
• Current owner paid $52k; list at $218k implies a 320% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $1,946/mo this rent would consume 50% of the median local household income ($46k/yr) (locally 1468% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 61 days. Have you received any prior offers? Is the seller open to a 11% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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.
• 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.