1099-LB Plan

Upper Macungie, PA 18031

$64,900B+

2 bd · 2.0 ba · 1,029 sqft · Built — · Manufactured · Active · 475 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,072/mo
• Mortgage (P&I): −$340
• Tax + insurance: −$175
• HOA: −$0
• Vac / Maint / Mgmt: −$435
• Net cashflow: $1,122/mo
• Annual: $13,464/yr
• Cap rate: 28.27%
• Cash-on-cash: 78.48%
• DSCR: 4.49
• 1% rule: 3.19%
• Cash to close: $18,172

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $65k. Condition is rated good.
• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $65k).
• It's been on market 475 days — a 12% lower offer ($57k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $57k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.7%/yr); year-one equity from $449 of loan paydown is wiped out by about $466 of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Parkland SD (suburban): math 59% / reading 70% proficiency, ranked #40 of 539 in PA (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Fogelsville Sch (math 63% / reading 73%, grade B+, #187 of 1,518 statewide, top 13%, 511 students, 28% FRL); Springhouse Ms (math 50% / reading 71%, grade B+, #39 of 512 statewide, top 8%, 1,344 students, 29% FRL); Parkland Hs (math 81% / reading 24%, grade C-, #107 of 437 statewide, top 25%, 3,220 students, 25% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising (+1.9%/yr); 125 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 765 units permitted in Lehigh County in 2024 (286 in 5+ unit buildings).
• Lehigh County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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.
• At projected returns (-0.7% appreciation + 1.9% rent growth), your $18k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 475 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.