636 Pa 981

Smithton, PA 15479

$29,000D+

4 bd · 1.5 ba · 5,500 sqft · Built 1964 · MultiFamily · Pending · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,445/mo
• Mortgage (P&I): −$152
• Tax + insurance: −$174
• HOA: −$0
• Vac / Maint / Mgmt: −$303
• Net cashflow: $816/mo
• Annual: $9,787/yr
• Cap rate: 45.22%
• Cash-on-cash: 139.03%
• DSCR: 7.19
• 1% rule: 4.98%
• Cash to close: $8,120

Investor read

• This is a 4-bed/1.5-bath multifamily listed at $29k.
• At list price, monthly cash flow is $816 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $29k).
• It's been on market 58 days — a 3% lower offer ($28k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $28k (3.0% below list) — sets the bar for market timing.
• In year one you build about $99 of equity ($200 loan paydown + $-101 appreciation (-0.3% local appreciation)).
• Location reads 56/100 on livability (#1,643 in PA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Yough SD (rural): math 29% / reading 51% proficiency, ranked #353 of 539 in PA (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mendon El Sch (math 27% / reading 52%, grade F, #947 of 1,518 statewide, top 65%, 226 students, 52% FRL); Yough Intrmd/Ms Sch (math 18% / reading 47%, grade F, #355 of 512 statewide, top 70%, 576 students, 46% FRL); Yough Shs (math 67%, 558 students, 35% FRL).
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 8 active listings in the ZIP; 415 units permitted in Westmoreland County in 2024 (10 in 5+ unit buildings).
• Westmoreland County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 2y ago; this cycle's ask has dropped $10k (26%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.3% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 58 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.