1001 City Ave Unit E-506

Penn Wynne, PA 19096

$249,000D

3 bd · 2.5 ba · 1,910 sqft · Built 1962 · Condo · Pending · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,545/mo
• Mortgage (P&I): −$1,306
• Tax + insurance: −$481
• HOA: −$1,876
• Vac / Maint / Mgmt: −$744
• Net cashflow: $-863/mo
• Annual: $-10,355/yr
• Cap rate: 2.45%
• Cash-on-cash: -13.71%
• DSCR: 0.39
• 1% rule: 1.42%
• Cash to close: $69,720

Investor read

• This is a 3-bed/2.5-bath condo listed at $249k. Condition is rated good.
• At list price, monthly cash flow is $-863 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (50.1% below list).
• Meets the 1% rule at list price ($4k rent vs $249k).
• It's been on market 52 days — a 3% lower offer ($242k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $124k (50.1% below list) — sets the bar for cash-flow.
• 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 89/100 on livability (#30 in PA, #167 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, commute A+; Watch: cost of living F.
• Lower Merion SD (suburban): math 74% / reading 84% proficiency, ranked #3 of 539 in PA (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 7% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $66/mo; HOA is 53% of rent.
• Market conditions: Rents falling (-7.2%/yr); 69 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 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.
• Climate carrying-cost: severe flood risk; major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 52 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?