Barberry Duplex Plan

Upper Hanover, PA 18073

$401,990D

6 bd · 5.0 ba · 1,621 sqft · Built — · MultiFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,680/mo
• Mortgage (P&I): −$2,108
• Tax + insurance: −$670
• HOA: −$0
• Vac / Maint / Mgmt: −$773
• Net cashflow: $129/mo
• Annual: $1,550/yr
• Cap rate: 6.68%
• Cash-on-cash: 1.38%
• DSCR: 1.06
• 1% rule: 0.92%
• Cash to close: $112,557

Investor read

• This is a 2 × 3-bed/2.5-bath units multifamily listed at $402k. Condition is rated poor.
• At list price, monthly cash flow is $129 ($2k/yr) — positive. Per door: $65/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $368k (8.5% below list).
• It's been on market 33 days — a 3% lower offer ($390k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $368k (8.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Upper Perkiomen SD (suburban): math 39% / reading 55% proficiency, ranked #189 of 539 in PA (top 35%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hereford El Sch (math 32% / reading 42%, grade F, #1,004 of 1,518 statewide, top 68%, 506 students, 44% FRL); Upper Perkiomen Ms (math 33% / reading 58%, grade D+, #184 of 512 statewide, top 36%, 742 students, 35% FRL); Upper Perkiomen Hs (math 64% / reading 24%, grade F, #207 of 437 statewide, top 47%, 1,059 students, 23% FRL).
• Market conditions: 105 active listings in the ZIP; 1,936 units permitted in Montgomery County in 2024 (530 in 5+ unit buildings).
• Montgomery County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Questions for listing agent

• It's been on market 33 days. Have you received any prior offers? Is the seller open to a 8% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage and potential leaks are visible.
• Major: siding — Peeling paint and possible rot are evident.
• Major: interior walls/paint — The exterior condition suggests the interior may be in poor condition.
• Major: landscaping — Minimal and in poor condition, with no visible curb appeal.
• Major: windows — The condition of the exterior suggests they may be in poor condition.
• Major: HVAC/mechanicals — The overall condition suggests they may be in poor condition.