726 E Dewart St

Shamokin, PA 17872

$160,000D

5 bd · 2.0 ba · 4,410 sqft · Built 1910 · Other · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,416/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$300
• HOA: −$0
• Vac / Maint / Mgmt: −$297
• Net cashflow: $-20/mo
• Annual: $-245/yr
• Cap rate: 6.14%
• Cash-on-cash: -0.55%
• DSCR: 0.98
• 1% rule: 0.89%
• Cash to close: $44,800

Investor read

• This is a 5-bed/2.0-bath other listed at $160k.
• At list price, monthly cash flow is $-20 ($-245/yr) — negative.
• To cash-flow at today's rent, offer at most $156k (2.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (11.5% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $142k (11.5% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($1k loan paydown + $3k appreciation (1.9% local appreciation)).
• Location reads 68/100 on livability (#887 in PA) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F, employment F.
• Shamokin Area SD (town): math 19% / reading 40% proficiency, ranked #450 of 539 in PA (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Shamokin Area El Sch (math 22% / reading 36%, grade F, #1,146 of 1,518 statewide, top 76%, 832 students, 100% FRL); Shamokin Area Ms (math 12% / reading 40%, grade F, #412 of 512 statewide, top 81%, 346 students, 100% FRL); Shamokin Area Hs (math 42% / reading 30%, grade F, #300 of 437 statewide, top 70%, 702 students, 80% FRL) — zoned schools average 93% FRL vs 57% district-wide (37 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 78 active listings in the ZIP; 81 units permitted in Northumberland County in 2024 (0 in 5+ unit buildings).
• Northumberland County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 11y 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.
• Current owner paid $128k; 25% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.9% appreciation + 3.0% rent growth), your $45k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1910 — 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 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?
• 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.
• 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.