865 E Brady Rd

East Franklin, PA 16218

$194,900D

4 bd · 1.0 ba · 1,522 sqft · Built 1937 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,278/mo
• Mortgage (P&I): −$1,022
• Tax + insurance: −$235
• HOA: −$0
• Vac / Maint / Mgmt: −$268
• Net cashflow: $-247/mo
• Annual: $-2,968/yr
• Cap rate: 4.77%
• Cash-on-cash: -5.44%
• DSCR: 0.76
• 1% rule: 0.66%
• Cash to close: $54,572

Investor read

• This is a 4-bed/1.0-bath single-family listed at $195k.
• At list price, monthly cash flow is $-247 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $151k (22.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (34.4% below list).
• It's been on market 20 days — a 2% lower offer ($192k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $128k (34.4% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($1k loan paydown + $9k appreciation (4.8% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Armstrong SD (rural): math 38% / reading 58% proficiency, ranked #233 of 539 in PA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Hills Primary Sch (math 52% / reading 62%, grade C+, #444 of 1,518 statewide, top 32%, 548 students, 100% FRL); West Hills Intermediate Sch (math 37% / reading 59%, grade C-, #153 of 512 statewide, top 30%, 475 students, 100% FRL); Armstrong Jshs (math 37% / reading 55%, grade D-, #178 of 437 statewide, top 42%, 1,478 students, 100% FRL) — zoned schools average 100% FRL vs 37% district-wide (63 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1937 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 58 units permitted in Armstrong County in 2024 (20 in 5+ unit buildings).
• Armstrong County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 9y 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 $195k implies a 112% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1937 — 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.
• 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.