507 Washington Ave

Clairton, PA 15025

$820,000C

3 bd · 1.0 ba · 1,242 sqft · Built 1940 · MultiFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,606/mo
• Mortgage (P&I): −$4,300
• Tax + insurance: −$1,367
• HOA: −$0
• Vac / Maint / Mgmt: −$2,017
• Net cashflow: $1,922/mo
• Annual: $23,063/yr
• Cap rate: 9.11%
• Cash-on-cash: 10.04%
• DSCR: 1.45
• 1% rule: 1.17%
• Cash to close: $229,600

Investor read

• This is a 9 × 1-bed/?-bath units multifamily listed at $820k.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $214/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $820k).
• It's been on market 21 days — a 2% lower offer ($808k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $808k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $25k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#1,308 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: crime C-, health & safety D+, schools F.
• Clairton City SD (suburban): math 7% / reading 21% proficiency, ranked #520 of 539 in PA (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+10.5%/yr); 94 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 63% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 2,996 units permitted in Allegheny County in 2024 (1,588 in 5+ unit buildings).
• Current owner paid $164k; list at $820k implies a 400% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $230k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 9.1% vs local median 12.7% in Clairton — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $9,606/mo this rent would consume 151% of the median local household income ($77k/yr) (locally 572% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1940 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.