2114-R Spring

Spring, PA 19609

$254,900C-

4 bd · 2.5 ba · 2,292 sqft · Built 1907 · SingleFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,449/mo
• Mortgage (P&I): −$1,337
• Tax + insurance: −$492
• HOA: −$0
• Vac / Maint / Mgmt: −$514
• Net cashflow: $106/mo
• Annual: $1,269/yr
• Cap rate: 6.79%
• Cash-on-cash: 1.78%
• DSCR: 1.08
• 1% rule: 0.96%
• Cash to close: $71,372

Investor read

• This is a 4-bed/2.5-bath single-family listed at $255k.
• At list price, monthly cash flow is $106 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $245k (3.9% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $245k (3.9% 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 $8k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Wilson SD (suburban): math 46% / reading 59% proficiency, ranked #127 of 539 in PA (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Whitfield El Sch (math 42% / reading 56%, grade D, #712 of 1,518 statewide, top 47%, 576 students, 32% FRL); Wilson West Ms (math 30% / reading 60%, grade D, #187 of 512 statewide, top 38%, 739 students, 31% FRL); Wilson Hs (math 61% / reading 24%, grade F, #225 of 437 statewide, top 51%, 2,059 students, 34% FRL).
• Watch-outs: built in 1907 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 45 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 258 units permitted in Berks County in 2024 (27 in 5+ unit buildings).
• Berks County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 24y ago; this cycle's ask is 76% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $155k; list at $255k implies a 64% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 36% of the median local income ($83k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1907 — 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.
• 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.