128 State Route 981

Smithton, PA 15012

$149,900D

2 bd · 1.0 ba · 1,200 sqft · Built 1922 · Other · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,159/mo
• Mortgage (P&I): −$786
• Tax + insurance: −$235
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $-105/mo
• Annual: $-1,264/yr
• Cap rate: 5.45%
• Cash-on-cash: -3.01%
• DSCR: 0.87
• 1% rule: 0.77%
• Cash to close: $41,972

Investor read

• This is a 2-bed/1.0-bath other listed at $150k.
• At list price, monthly cash flow is $-105 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $131k (12.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (22.7% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $116k (22.7% below list) — sets the bar for 1% rule.
• In year one you build about $16k of equity ($1k loan paydown + $15k appreciation (10.0% local appreciation)).
• Location reads 56/100 on livability (#1,643 in PA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Belle Vernon Area SD (suburban): math 34% / reading 56% proficiency, ranked #267 of 539 in PA (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rostraver El Sch (math 37% / reading 57%, grade D-, #737 of 1,518 statewide, top 52%, 646 students, 45% FRL); Belle Vernon Area Ms (math 12% / reading 52%, grade F, #362 of 512 statewide, top 71%, 334 students, 46% FRL); Belle Vernon Area Hs (math 57%, 752 students, 36% FRL).
• Watch-outs: built in 1922 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 95 active listings in the ZIP; 415 units permitted in Westmoreland County in 2024 (10 in 5+ unit buildings).
• Westmoreland County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 1922 — 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 F-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.
• 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.