78 State St

Bradford, PA 16701

$82,900C

3 bd · 1.0 ba · 1,280 sqft · Built 1890 · Other · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $926/mo
• Mortgage (P&I): −$435
• Tax + insurance: −$156
• HOA: −$0
• Vac / Maint / Mgmt: −$194
• Net cashflow: $140/mo
• Annual: $1,685/yr
• Cap rate: 8.33%
• Cash-on-cash: 7.26%
• DSCR: 1.32
• 1% rule: 1.12%
• Cash to close: $23,212

Investor read

• This is a 3-bed/1.0-bath other listed at $83k.
• At list price, monthly cash flow is $140 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($926 rent vs $83k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $573 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#814 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Bradford Area SD (town): math 41% / reading 60% proficiency, ranked #187 of 539 in PA (top 35%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: George Blaisdell El Sch (567 students, 100% FRL); Floyd C Fretz Ms (math 33% / reading 60%, grade D+, #172 of 512 statewide, top 35%, 568 students, 100% FRL); Bradford Area Hs (math 72% / reading 24%, grade D, #153 of 437 statewide, top 37%, 751 students, 100% FRL) — zoned schools average 100% FRL vs 47% district-wide (53 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 78 active listings in the ZIP; 29 units permitted in McKean County in 2024 (0 in 5+ unit buildings).
• McKean County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 8y 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 $50k; list at $83k implies a 66% gain — meaningful room to come down on a strong offer.
• Cap rate 8.3% vs local median 4.3% in Bradford — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• Built in 1890 — 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.