540 Green St

Lansdale, PA 19446

$474,750D-

4 bd · 2.0 ba · 1,800 sqft · Built 1979 · MultiFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,894/mo
• Mortgage (P&I): −$2,490
• Tax + insurance: −$640
• HOA: −$0
• Vac / Maint / Mgmt: −$818
• Net cashflow: $-53/mo
• Annual: $-642/yr
• Cap rate: 6.16%
• Cash-on-cash: -0.48%
• DSCR: 0.98
• 1% rule: 0.82%
• Cash to close: $132,930

Investor read

• This is a 2 × 2-bed/1-bath units multifamily listed at $475k.
• At list price, monthly cash flow is $-53 ($-642/yr) — negative. Per door: $-27/mo.
• To cash-flow at today's rent, offer at most $465k (2.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $389k (18.0% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $389k (18.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#31 in PA, #170 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, housing A+.
• North Penn SD (suburban): math 48% / reading 67% proficiency, ranked #76 of 539 in PA (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: York Avenue El Sch (math 42% / reading 67%, grade C, #504 of 1,518 statewide, top 37%, 283 students, 42% FRL); Penndale Ms (math 32% / reading 63%, grade C-, #156 of 512 statewide, top 32%, 1,208 students, 43% FRL); North Penn Shs (math 78% / reading 50%, grade B-, #67 of 437 statewide, top 15%, 3,184 students, 34% FRL) — zoned schools average 40% FRL vs 20% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.1%/yr); 190 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,936 units permitted in Montgomery County in 2024 (530 in 5+ unit buildings).
• Montgomery County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $80k; list at $475k implies a 494% 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.
• Cap rate 6.2% vs local median 3.4% in Lansdale — 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.
• This rent runs 44% of the median local income ($106k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1979 — 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.
• Schools are A-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?
• 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.