113 Center St

Evans City, PA 16033

$220,000F

2 bd · 1.0 ba · 1,044 sqft · Built 1964 · SingleFamily · Pending · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,819/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$318
• HOA: −$0
• Vac / Maint / Mgmt: −$382
• Net cashflow: $-35/mo
• Annual: $-419/yr
• Cap rate: 6.10%
• Cash-on-cash: -0.68%
• DSCR: 0.97
• 1% rule: 0.83%
• Cash to close: $61,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $220k.
• At list price, monthly cash flow is $-35 ($-419/yr) — negative.
• To cash-flow at today's rent, offer at most $214k (2.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $182k (17.3% below list).
• It's been on market 51 days — a 3% lower offer ($213k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $182k (17.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#758 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, health & safety C-, amenities F.
• Seneca Valley SD (rural): math 48% / reading 67% proficiency, ranked #73 of 539 in PA (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 12% free/reduced lunch — higher-income household profile.
• Zoned schools: Ehrman Crest El Sch (math 59% / reading 69%, grade B, #289 of 1,518 statewide, top 19%, 758 students, 19% FRL); Ryan Gloyer Ms (math 32% / reading 64%, grade C-, #153 of 512 statewide, top 30%, 1,123 students, 21% FRL); Seneca Valley Hs (math 71% / reading 75%, grade B+, #35 of 437 statewide, top 8%, 2,307 students, 18% FRL).
• Market conditions: 69 active listings in the ZIP; 987 units permitted in Butler County in 2024 (0 in 5+ unit buildings).
• Butler County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 26y ago; this cycle's ask has dropped $30k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $130k; list at $220k implies a 69% gain — meaningful room to come down on a strong offer.
• Cap rate 6.1% vs local median 2.5% in Evans City — 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.

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 51 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Built in 1964 — 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 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?
• 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.