3000 E High St #83

Sanatoga, PA 19464

$20,000D+

2 bd · 1.0 ba · 672 sqft · Built 1969 · Manufactured · Pending · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,466/mo
• Mortgage (P&I): −$105
• Tax + insurance: −$61
• HOA: −$0
• Vac / Maint / Mgmt: −$308
• Net cashflow: $993/mo
• Annual: $11,912/yr
• Cap rate: 65.85%
• Cash-on-cash: 212.72%
• DSCR: 10.46
• 1% rule: 7.33%
• Cash to close: $5,600

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $20k.
• At list price, monthly cash flow is $993 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $20k).
• It's been on market 51 days — a 3% lower offer ($19k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $19k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $138 of loan paydown is wiped out by about $600 of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#526 in PA, #4,881 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Pottsgrove SD (suburban): math 29% / reading 50% proficiency, ranked #318 of 539 in PA (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lower Pottsgrove El Sch (math 30% / reading 49%, grade F, #947 of 1,518 statewide, top 65%, 661 students, 48% FRL); Pottsgrove Ms (math 17% / reading 51%, grade F, #334 of 512 statewide, top 67%, 697 students, 49% FRL); Pottsgrove Shs (math 60% / reading 30%, grade D-, #192 of 437 statewide, top 44%, 1,021 students, 34% FRL).
• Watch-outs: property tax is 3.2% of price.
• Market conditions: Rents rising fast (+4.9%/yr); 213 active listings in the ZIP; solid renter incomes; 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.
• At projected returns (-3.0% appreciation + 4.9% rent growth), your $6k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 65.9% vs local median 3.1% in Sanatoga — 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

• It's been on market 51 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.