7804 Dougherty Dr

Middle Smithfield, PA 18302

$175,000B-

3 bd · 2.0 ba · 1,296 sqft · Built 2022 · Other · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,727/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$292
• HOA: −$0
• Vac / Maint / Mgmt: −$573
• Net cashflow: $945/mo
• Annual: $11,341/yr
• Cap rate: 12.77%
• Cash-on-cash: 23.14%
• DSCR: 2.03
• 1% rule: 1.56%
• Cash to close: $49,000

Investor read

• This is a 3-bed/2.0-bath other listed at $175k. Condition is rated good.
• At list price, monthly cash flow is $945 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $175k).
• It's been on market 38 days — a 3% lower offer ($170k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $170k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• East Stroudsburg Area SD (rural): math 25% / reading 43% proficiency, ranked #413 of 539 in PA (top 77%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Resica El Sch (math 27% / reading 47%, grade F, #1,004 of 1,518 statewide, top 68%, 416 students, 62% FRL); J T Lambert Intermediate Sch (math 11% / reading 44%, grade F, #399 of 512 statewide, top 79%, 942 students, 61% FRL); East Stroudsburg Shs South (math 43% / reading 50%, grade D-, #177 of 437 statewide, top 40%, 1,338 students, 48% FRL) — zoned schools average 57% FRL vs 42% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 272 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 278 units permitted in Monroe County in 2024 (52 in 5+ unit buildings).
• Monroe County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 5y ago 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $49k cash investment doubles in ~6 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.