1201 Waverly Rd

Lower Merion, PA 19035

$1,050,000D+

4 bd · 3.0 ba · 3,294 sqft · Built 1954 · SingleFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,500/mo
• Mortgage (P&I): −$5,506
• Tax + insurance: −$1,621
• HOA: −$0
• Vac / Maint / Mgmt: −$1,575
• Net cashflow: $-1,203/mo
• Annual: $-14,433/yr
• Cap rate: 4.92%
• Cash-on-cash: -4.91%
• DSCR: 0.78
• 1% rule: 0.71%
• Cash to close: $294,000

Investor read

• This is a 4-bed/3.0-bath single-family listed at $1.05M.
• At list price, monthly cash flow is $-1k ($-14k/yr) — negative.
• To cash-flow at today's rent, offer at most $838k (20.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $750k (28.6% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $750k (28.6% below list) — sets the bar for 1% rule.
• In year one you build about $62k of equity ($7k loan paydown + $54k appreciation (5.2% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• 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.
• Zoned schools: Gladwyne Sch (math 80% / reading 89%, grade A+, #14 of 1,518 statewide, top 2%, 540 students, 9% FRL); Welsh Valley Ms (math 63% / reading 80%, grade A, #9 of 512 statewide, top 2%, 814 students, 16% FRL); Harriton Shs (math 85%, 1,261 students, 14% FRL).
• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 33 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 3 sale attempts since 31y ago; this cycle's ask is 40% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $700k; list at $1.05M implies a 50% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$99k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: 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?
• Built in 1954 — 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.
• 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.
• 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.