6 N Main St

New Hope, PA 18955

$375,000B+

8 bd · 5.5 ba · 3,927 sqft · Built 1850 · MultiFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,872/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$1,149
• HOA: −$0
• Vac / Maint / Mgmt: −$2,703
• Net cashflow: $7,053/mo
• Annual: $84,635/yr
• Cap rate: 30.34%
• Cash-on-cash: 85.87%
• DSCR: 4.82
• 1% rule: 3.43%
• Cash to close: $105,000

Investor read

• This is a 8-bed/5.5-bath multifamily listed at $375k.
• At list price, monthly cash flow is $7k ($85k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($13k rent vs $375k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $9k of equity ($3k loan paydown + $6k appreciation (1.6% local appreciation)).
• Location reads 74/100 on livability (#494 in PA, #4,556 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, employment A+, health & safety A+; Watch: amenities D+, commute F, cost of living F.
• New Hope-Solebury SD (suburban): math 63% / reading 75% proficiency, ranked #17 of 539 in PA (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 5% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $460/mo; built in 1850 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 663 units permitted in Bucks County in 2024 (106 in 5+ unit buildings).
• Bucks County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (1.6% appreciation + 3.0% rent growth), your $105k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); 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.
• Cap rate 30.3% vs local median 1.0% in New Hope — 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 1850 — 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?
• 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?
• 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.