517 Broad St

Tamaqua, PA 18252

$275,000B-

6 bd · 2.0 ba · 3,306 sqft · Built 1900 · MultiFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,758/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$458
• HOA: −$0
• Vac / Maint / Mgmt: −$789
• Net cashflow: $1,068/mo
• Annual: $12,820/yr
• Cap rate: 10.95%
• Cash-on-cash: 16.65%
• DSCR: 1.74
• 1% rule: 1.37%
• Cash to close: $77,000

Investor read

• This is a 6-bed/2.0-bath multifamily listed at $275k.
• 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 ($4k rent vs $275k).
• It's been on market 15 days — a 2% lower offer ($271k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $271k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#209 in PA, #1,844 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute D+, employment F.
• Tamaqua Area SD (rural): math 31% / reading 53% proficiency, ranked #331 of 539 in PA (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Tamaqua El Sch (math 35% / reading 56%, grade D-, #801 of 1,518 statewide, top 53%, 695 students, 68% FRL); Tamaqua Area Ms (math 20% / reading 46%, grade F, #346 of 512 statewide, top 69%, 433 students, 61% FRL); Tamaqua Area Shs (math 47% / reading 62%, grade C-, #99 of 437 statewide, top 23%, 691 students, 50% FRL) — zoned schools average 60% FRL vs 37% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 76 active listings in the ZIP; 169 units permitted in Schuylkill County in 2024 (0 in 5+ unit buildings).
• Schuylkill County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 10 sale attempts since 12y 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 $67k; list at $275k implies a 310% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $77k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 11.0% vs local median 6.3% in Tamaqua — 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

• Built in 1900 — 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.
• 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.