7500 Ellesmere St

Swissvale, PA 15218

$509,999B-

12 bd · 6.0 ba · — sqft · Built — · MultiFamily · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,924/mo
• Mortgage (P&I): −$2,674
• Tax + insurance: −$784
• HOA: −$0
• Vac / Maint / Mgmt: −$1,454
• Net cashflow: $2,011/mo
• Annual: $24,135/yr
• Cap rate: 11.03%
• Cash-on-cash: 16.90%
• DSCR: 1.75
• 1% rule: 1.36%
• Cash to close: $142,800

Investor read

• This is a 6 × 2-bed/1-bath units multifamily listed at $510k.
• At list price, monthly cash flow is $2k ($24k/yr) — positive. Per door: $335/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $510k).
• It's been on market 37 days — a 3% lower offer ($495k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $495k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#95 in PA, #694 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime C-, amenities D+.
• Woodland Hills SD (suburban): math 13% / reading 30% proficiency, ranked #486 of 539 in PA (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Edgewood El Steam Academy (math 12% / reading 32%, grade F, #1,221 of 1,518 statewide, top 81%, 531 students, 100% FRL); Dickson Prep Steam Academy (math 8% / reading 27%, grade F, #455 of 512 statewide, top 89%, 642 students, 100% FRL); Woodland Hills Hs (math 37% / reading 30%, grade F, #323 of 437 statewide, top 74%, 949 students, 89% FRL) — zoned schools average 96% FRL vs 69% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+6.0%/yr); 79 active listings in the ZIP; 2,996 units permitted in Allegheny County in 2024 (1,588 in 5+ unit buildings).
• 5 sale attempts since 13y 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 $375k; 36% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 6.0% rent growth), your $143k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 11.0% vs local median 6.3% in Swissvale — 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 $6,924/mo this rent would consume 122% of the median local household income ($68k/yr) (locally 605% 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 37 days. Have you received any prior offers? Is the seller open to a 3% 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?
• 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?
• 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.