200 S Chestnut St

Ambler, PA 19002

$1,500,000C

84 bd · None ba · 7,464 sqft · Built 1900 · MultiFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,515/mo
• Mortgage (P&I): −$7,866
• Tax + insurance: −$2,500
• HOA: −$0
• Vac / Maint / Mgmt: −$3,258
• Net cashflow: $1,891/mo
• Annual: $22,688/yr
• Cap rate: 7.81%
• Cash-on-cash: 5.40%
• DSCR: 1.24
• 1% rule: 1.03%
• Cash to close: $420,000

Investor read

• This is a 6×2bd/1ba + 1×1bd/1ba units multifamily listed at $1.50M.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $270/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($16k rent vs $1.50M).
• It's been on market 15 days — a 2% lower offer ($1.48M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.48M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $45k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#55 in PA, #387 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D+.
• Wissahickon SD (suburban): math 61% / reading 77% proficiency, ranked #18 of 539 in PA (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Shady Grove El Sch (math 59% / reading 70%, grade B, #249 of 1,518 statewide, top 19%, 664 students, 25% FRL); Wissahickon Ms (math 46% / reading 78%, grade B+, #32 of 512 statewide, top 7%, 1,127 students, 21% FRL); Wissahickon Shs (math 81% / reading 24%, grade C-, #107 of 437 statewide, top 25%, 1,459 students, 24% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.9%/yr); 126 active listings in the ZIP; high-income renter base; 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.
• 3 sale attempts since 16y 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 $480k; list at $1.50M implies a 212% gain — meaningful room to come down on a strong offer.
• Cap rate 7.8% vs local median 2.9% in Ambler — 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 $15,515/mo this rent would consume 130% of the median local household income ($144k/yr) (locally 538% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Built in 1900 — 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.
• Schools are A-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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.