1163 Cherry Street Ext

Wellsboro, PA 16901

$229,900D-

3 bd · 2.5 ba · 1,344 sqft · Built 1960 · SingleFamily · Active · 58 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,060/mo
• Mortgage (P&I): −$1,206
• Tax + insurance: −$333
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $-701/mo
• Annual: $-8,410/yr
• Cap rate: 2.63%
• Cash-on-cash: -13.06%
• DSCR: 0.42
• 1% rule: 0.46%
• Cash to close: $64,372

Investor read

• This is a 3-bed/2.5-bath single-family listed at $230k.
• At list price, monthly cash flow is $-701 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $106k (53.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (53.9% below list).
• It's been on market 58 days — a 3% lower offer ($223k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (53.9% below list) — sets the bar for 1% rule.
• In year one you build about $25k of equity ($2k loan paydown + $23k appreciation (10.0% local appreciation)).
• Location reads 75/100 on livability (#426 in PA, #3,882 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment D-.
• Wellsboro Area SD (rural): math 37% / reading 58% proficiency, ranked #230 of 539 in PA (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Don Gill El Sch (math 33% / reading 51%, grade F, #883 of 1,518 statewide, top 61%, 318 students, 55% FRL); Rock L Butler Ms (math 32% / reading 61%, grade D+, #172 of 512 statewide, top 35%, 480 students, 50% FRL); Wellsboro Area Hs (math 77%, 439 students, 45% FRL) — zoned schools average 50% FRL vs 31% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 35 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 32 units permitted in Tioga County in 2024 (0 in 5+ unit buildings).
• Tioga County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 8 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 $145k; list at $230k implies a 59% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$40k 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?
• It's been on market 58 days. Have you received any prior offers? Is the seller open to a 54% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.