346 Centennial Ave

Hanover, PA 17331

$219,995F

2 bd · 2.0 ba · 1,140 sqft · Built 1990 · SingleFamily · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,328/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$463
• HOA: −$0
• Vac / Maint / Mgmt: −$279
• Net cashflow: $-567/mo
• Annual: $-6,807/yr
• Cap rate: 3.20%
• Cash-on-cash: -11.05%
• DSCR: 0.51
• 1% rule: 0.60%
• Cash to close: $61,599

Investor read

• This is a 2-bed/2.0-bath single-family listed at $220k.
• At list price, monthly cash flow is $-567 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $120k (45.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (39.6% below list).
• It's been on market 22 days — a 2% lower offer ($217k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $120k (45.6% below list) — sets the bar for cash-flow.
• 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 76/100 on livability (#373 in PA, #3,295 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities C-, employment D, commute F.
• Hanover Public SD (urban): math 34% / reading 54% proficiency, ranked #294 of 539 in PA (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hanover Street El Sch (math 37% / reading 62%, grade D, #654 of 1,518 statewide, top 47%, 252 students, 80% FRL); Hanover Ms (math 22% / reading 48%, grade F, #322 of 512 statewide, top 64%, 615 students, 69% FRL); Hanover Shs (math 67%, 585 students, 64% FRL) — zoned schools average 71% FRL vs 49% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+4.7%/yr); 391 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,328 units permitted in York County in 2024 (338 in 5+ unit buildings).
• 3 sale attempts since 27y 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 $155k; 42% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.