1096 - 1098 Valley St

McKees Rocks, PA 15136

$369,500B

30 bd · 25.0 ba · — sqft · Built — · MultiFamily · Active · 126 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,996/mo
• Mortgage (P&I): −$1,938
• Tax + insurance: −$682
• HOA: −$0
• Vac / Maint / Mgmt: −$2,099
• Net cashflow: $5,277/mo
• Annual: $63,322/yr
• Cap rate: 23.65%
• Cash-on-cash: 61.98%
• DSCR: 3.76
• 1% rule: 2.71%
• Cash to close: $103,460

Investor read

• This is a 5 × 6-bed/5.0-bath units multifamily listed at $370k. Condition is rated good.
• At list price, monthly cash flow is $5k ($63k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $370k).
• It's been on market 126 days — a 12% lower offer ($325k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $325k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#143 in PA, #1,154 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment F.
• Sto-Rox SD (suburban): math 4% / reading 18% proficiency, ranked #532 of 539 in PA (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Sto-Rox Primary Ctr (math 8% / reading 27%, grade F, #1,295 of 1,518 statewide, top 86%, 328 students, 100% FRL); Sto-Rox Upper El Sch (math 3% / reading 20%, grade F, #492 of 512 statewide, top 96%, 218 students, 100% FRL); Sto-Rox Jshs (math 2% / reading 2%, grade F, #437 of 437 statewide, top 100%, 517 students, 92% FRL) — zoned schools average 98% FRL vs 77% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising fast (+13.1%/yr); 125 active listings in the ZIP; 2,996 units permitted in Allegheny County in 2024 (1,588 in 5+ unit buildings).
• 2 sale attempts 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.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $103k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 23.6% vs local median 10.0% in McKees Rocks — 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.
• At $9,996/mo this rent would consume 174% of the median local household income ($69k/yr) (locally 768% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 126 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — Worn appearance
• Minor: bathroom cabinet — Worn appearance
• Minor: paint touch-ups — Faded paint