218 Locust St

Rural Valley, PA 16249

$134,900D

3 bd · 2.0 ba · 1,230 sqft · Built 1976 · SingleFamily · Active · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,095/mo
• Mortgage (P&I): −$707
• Tax + insurance: −$340
• HOA: −$0
• Vac / Maint / Mgmt: −$230
• Net cashflow: $-183/mo
• Annual: $-2,195/yr
• Cap rate: 4.67%
• Cash-on-cash: -5.81%
• DSCR: 0.74
• 1% rule: 0.81%
• Cash to close: $37,772

Investor read

• This is a 3-bed/2.0-bath single-family listed at $135k.
• At list price, monthly cash flow is $-183 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $103k (24.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $109k (18.9% below list).
• It's been on market 94 days — a 9% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $103k (24.0% below list) — sets the bar for cash-flow.
• In year one you build about $114 of equity ($933 loan paydown + $-819 appreciation (-0.6% local appreciation)).
• Location reads 72/100 on livability (#635 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Armstrong SD (rural): math 38% / reading 58% proficiency, ranked #233 of 539 in PA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Shannock Valley El Sch (math 42% / reading 57%, grade D, #654 of 1,518 statewide, top 47%, 336 students, 100% FRL); West Hills Intermediate Sch (math 37% / reading 59%, grade C-, #153 of 512 statewide, top 30%, 475 students, 100% FRL); West Shamokin Jshs (math 30% / reading 62%, grade D-, #178 of 437 statewide, top 42%, 524 students, 100% FRL) — zoned schools average 100% FRL vs 37% district-wide (63 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.5% of price.
• Market conditions: 9 active listings in the ZIP; 58 units permitted in Armstrong County in 2024 (20 in 5+ unit buildings).
• Armstrong County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $56k; list at $135k implies a 141% gain — meaningful room to come down on a strong offer.

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 94 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?