5-B Mel Ron Ct

Schlusser, PA 17015

$210,000D-

2 bd · 1.5 ba · 1,056 sqft · Built 1995 · Condo · Pending · 82 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,848/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$350
• HOA: −$136
• Vac / Maint / Mgmt: −$388
• Net cashflow: $-127/mo
• Annual: $-1,528/yr
• Cap rate: 5.57%
• Cash-on-cash: -2.60%
• DSCR: 0.88
• 1% rule: 0.88%
• Cash to close: $58,800

Investor read

• This is a 2-bed/1.5-bath condo listed at $210k.
• At list price, monthly cash flow is $-127 ($-2k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $185k (12.0% below list).
• It's been on market 82 days — a 6% lower offer ($197k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $185k (12.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#1,058 in PA) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Cumberland Valley SD (suburban): math 54% / reading 71% proficiency, ranked #52 of 539 in PA (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Middlesex El Sch (math 42% / reading 57%, grade D, #654 of 1,518 statewide, top 47%, 414 students, 49% FRL); Eagle View Ms (math 39% / reading 67%, grade C+, #90 of 512 statewide, top 19%, 1,021 students, 29% FRL); Cumberland Valley Hs (math 66% / reading 24%, grade D-, #191 of 437 statewide, top 44%, 3,035 students, 25% FRL) — zoned schools average 34% FRL vs 13% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 49% at this address vs 62% district-wide (-13 pts) — the specific schools serving this property underperform the Cumberland Valley SD average; the district grade overstates school quality for this exact location.
• Market conditions: 188 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,052 units permitted in Cumberland County in 2024 (310 in 5+ unit buildings).
• Cumberland County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 12y 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 $92k; list at $210k implies a 128% gain — meaningful room to come down on a strong offer.
• Cap rate 5.6% vs local median 4.0% in Schlusser — 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.

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?
• It's been on market 82 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?