126 Shoaf Rd

Smithfield, PA 15478

$17,900C-

2 bd · 1.0 ba · 1,054 sqft · Built 1900 · MultiFamily · Active · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,679/mo
• Mortgage (P&I): −$94
• Tax + insurance: −$39
• HOA: −$0
• Vac / Maint / Mgmt: −$353
• Net cashflow: $1,193/mo
• Annual: $14,321/yr
• Cap rate: 86.30%
• Cash-on-cash: 285.74%
• DSCR: 13.71
• 1% rule: 9.38%
• Cash to close: $5,012

Investor read

• This is a 2-bed/1.0-bath multifamily listed at $18k.
• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $18k).
• It's been on market 58 days — a 3% lower offer ($17k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $17k (3.0% below list) — sets the bar for market timing.
• In year one you build about $944 of equity ($124 loan paydown + $820 appreciation (4.6% local appreciation)).
• Location reads 64/100 on livability (#1,189 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Albert Gallatin Area SD (rural): math 26% / reading 46% proficiency, ranked #419 of 539 in PA (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 201 units permitted in Fayette County in 2024 (10 in 5+ unit buildings).
• Fayette County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.6% appreciation + 3.0% rent growth), your $5k cash investment doubles in ~1 year — after that, you're playing with house money.

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 1900 — 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.
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.