103 Main St

Northampton, PA 18067

$305,000D

3 bd · 1.0 ba · 2,162 sqft · Built 1900 · SingleFamily · Active · 75 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,383/mo
• Mortgage (P&I): −$1,599
• Tax + insurance: −$468
• HOA: −$0
• Vac / Maint / Mgmt: −$500
• Net cashflow: $-185/mo
• Annual: $-2,218/yr
• Cap rate: 5.57%
• Cash-on-cash: -2.60%
• DSCR: 0.88
• 1% rule: 0.78%
• Cash to close: $85,400

Investor read

• This is a 3-bed/1.0-bath single-family listed at $305k.
• At list price, monthly cash flow is $-185 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $272k (10.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (21.9% below list).
• It's been on market 75 days — a 6% lower offer ($287k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $238k (21.9% 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 $9k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#226 in PA, #1,961 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Northampton Area SD (suburban): math 47% / reading 54% proficiency, ranked #153 of 539 in PA (top 28%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Colonel John Siegfried El Sch (math 42% / reading 62%, grade C-, #586 of 1,518 statewide, top 42%, 808 students, 51% FRL); Northampton Area Ms (math 24% / reading 46%, grade F, #322 of 512 statewide, top 64%, 1,256 students, 42% FRL); Northampton Area Hs (math 60% / reading 24%, grade F, #230 of 437 statewide, top 53%, 1,862 students, 31% FRL) — zoned schools average 42% FRL vs 22% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.3%/yr); 99 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 567 units permitted in Northampton County in 2024 (151 in 5+ unit buildings).
• 5 sale attempts since 3y ago; this cycle's ask has dropped $48k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• 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.
• Cap rate 5.6% vs local median 4.1% in Northampton — 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.
• This rent runs 31% of the median local income ($94k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 75 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 B-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.