518 South St

Jim Thorpe, PA 18229

$224,900B-

3 bd · 1.0 ba · 1,140 sqft · Built 1900 · MultiFamily · Pending · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,271/mo
• Mortgage (P&I): −$1,179
• Tax + insurance: −$363
• HOA: −$0
• Vac / Maint / Mgmt: −$897
• Net cashflow: $1,832/mo
• Annual: $21,980/yr
• Cap rate: 16.07%
• Cash-on-cash: 34.90%
• DSCR: 2.55
• 1% rule: 1.90%
• Cash to close: $62,972

Investor read

• This is a 3-bed/1.0-bath multifamily listed at $225k.
• At list price, monthly cash flow is $2k ($22k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $225k).
• It's been on market 21 days — a 2% lower offer ($222k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $222k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#675 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: employment C-, amenities F, commute F.
• Jim Thorpe Area SD (rural): math 25% / reading 47% proficiency, ranked #394 of 539 in PA (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: L B Morris El Sch (math 20% / reading 47%, grade F, #1,081 of 1,518 statewide, top 71%, 624 students, 31% FRL); Jim Thorpe Area Hs (math 62% / reading 75%, grade B, #53 of 437 statewide, top 13%, 565 students, 45% FRL) — zoned schools at 38% FRL track the district average.
• Zoned-school proficiency averages 51% at this address vs 36% district-wide (+15 pts) — the actual schools serving this property are materially stronger than the Jim Thorpe Area SD average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 152 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); 180 units permitted in Carbon County in 2024 (10 in 5+ unit buildings).
• Carbon County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $8k; list at $225k implies a 2711% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $63k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 16.1% vs local median 4.1% in Jim Thorpe — 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.
• At $4,271/mo this rent would consume 77% of the median local household income ($67k/yr) (locally 192% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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.
• 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?
• 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.