316 Ohara Rd T 316 Rd Unit T 316

Scranton, PA 18444

$60,000D-

3 bd · 2.0 ba · 1,800 sqft · Built 2005 · SingleFamily · Pending · 392 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,100/mo
• Mortgage (P&I): −$2,015
• Tax + insurance: −$641
• HOA: −$0
• Vac / Maint / Mgmt: −$441
• Net cashflow: $-997/mo
• Annual: $-11,963/yr
• Cap rate: 3.18%
• Cash-on-cash: -11.12%
• DSCR: 0.51
• 1% rule: 0.55%
• Cash to close: $107,609

Investor read

• This is a 3-bed/2.0-bath single-family listed at $60k. Condition is rated fair.
• At list price, monthly cash flow is $-997 ($-12k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $60k).
• It's been on market 392 days — a 12% lower offer ($53k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $53k (12.0% below list) — sets the bar for market timing.
• In year one you build about $41k of equity ($3k loan paydown + $38k appreciation (10.0% local appreciation)).
• Location reads 87/100 on livability (#50 in PA, #283 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: employment D.
• North Pocono SD (rural): math 45% / reading 71% proficiency, ranked #82 of 539 in PA (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Moscow El Sch (math 62% / reading 82%, grade A-, #123 of 1,518 statewide, top 9%, 591 students, 43% FRL); North Pocono Ms (math 25% / reading 69%, grade D+, #163 of 512 statewide, top 33%, 665 students, 36% FRL); North Pocono Hs (math 72%, 905 students, 33% FRL).
• Watch-outs: property tax is 9.6% of price.
• Market conditions: 97 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 251 units permitted in Lackawanna County in 2024 (0 in 5+ unit buildings).
• Lackawanna County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts; this cycle's ask has dropped $300k (83%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$66k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 392 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Fencing — Fencing is damaged and leaning, requiring structural repairs.
• Major: Trees — Trees are overgrown and branches are falling, posing safety hazards and requiring trimming.
• Minor: Kitchen cabinets — Cabinets are outdated but not structurally damaged.
• Minor: Bathroom fixtures — Fixtures are dated but functional.
• Minor: Kitchen flooring — Flooring is outdated but structurally sound.
• Minor: Bathroom flooring — Flooring is outdated but structurally sound.