418 State St

East Greenville, PA 18041

$324,900F

3 bd · 1.5 ba · 1,448 sqft · Built 2001 · Townhouse · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,700/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$526
• HOA: −$0
• Vac / Maint / Mgmt: −$567
• Net cashflow: $-97/mo
• Annual: $-1,159/yr
• Cap rate: 5.94%
• Cash-on-cash: -1.27%
• DSCR: 0.94
• 1% rule: 0.83%
• Cash to close: $90,972

Investor read

• This is a 3-bed/1.5-bath townhouse listed at $325k.
• At list price, monthly cash flow is $-97 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $308k (5.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $270k (16.9% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $270k (16.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#94 in PA, #684 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, cost of living A+; Watch: commute F.
• Upper Perkiomen SD (suburban): math 39% / reading 55% proficiency, ranked #189 of 539 in PA (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hereford El Sch (math 32% / reading 42%, grade F, #1,004 of 1,518 statewide, top 68%, 506 students, 44% FRL); Upper Perkiomen Hs (math 64% / reading 24%, grade F, #207 of 437 statewide, top 47%, 1,059 students, 23% FRL).
• Market conditions: 16 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,936 units permitted in Montgomery County in 2024 (530 in 5+ unit buildings).
• Montgomery County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 24y ago; this cycle's ask is 86% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $175k; list at $325k implies a 86% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→16/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.