821 Mckean Ave

Charleroi, PA 15022

$53,000B-

3 bd · 1.0 ba · 1,482 sqft · Built 1895 · SingleFamily · Active · 103 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,249/mo
• Mortgage (P&I): −$278
• Tax + insurance: −$556
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $153/mo
• Annual: $1,835/yr
• Cap rate: 20.18%
• Cash-on-cash: 49.60%
• DSCR: 3.21
• 1% rule: 2.36%
• Cash to close: $14,840

Investor read

• This is a 3-bed/1.0-bath single-family listed at $53k.
• At list price, monthly cash flow is $153 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $53k).
• It's been on market 103 days — a 9% lower offer ($48k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $48k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.8%/yr); year-one equity from $366 of loan paydown is wiped out by about $970 of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#382 in PA, #3,416 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: employment F.
• Charleroi SD (rural): math 20% / reading 51% proficiency, ranked #421 of 539 in PA (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Charleroi Area El Ctr (math 17% / reading 51%, grade F, #1,076 of 1,518 statewide, top 71%, 584 students, 62% FRL); Charleroi Area Ms (math 12% / reading 51%, grade F, #367 of 512 statewide, top 73%, 329 students, 54% FRL); Charleroi Area Hs (math 74% / reading 24%, grade D, #138 of 437 statewide, top 34%, 476 students, 33% FRL).
• Watch-outs: flood insurance adds $460/mo; built in 1895 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 85 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 489 units permitted in Washington County in 2024 (30 in 5+ unit buildings).
• Washington County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $6k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $37k; 43% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-1.8% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 8→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 20.2% vs local median 15.3% in Charleroi — 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

• It's been on market 103 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1895 — 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?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.