1001 City Ave Unit E-404

Penn Wynne, PA 19096

$145,000C+

2 bd · 2.0 ba · 1,222 sqft · Built 1962 · Condo · Active · 163 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,745/mo
• Mortgage (P&I): −$760
• Tax + insurance: −$308
• HOA: −$1,092
• Vac / Maint / Mgmt: −$576
• Net cashflow: $8/mo
• Annual: $93/yr
• Cap rate: 6.91%
• Cash-on-cash: 2.19%
• DSCR: 1.10
• 1% rule: 1.89%
• Cash to close: $40,600

Investor read

• This is a 2-bed/2.0-bath condo listed at $145k. Condition is rated fair.
• At list price, monthly cash flow is $8 ($93/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $145k).
• It's been on market 163 days — a 12% lower offer ($128k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $128k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k 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: crime A+, commute A+, employment 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.
• Zoned schools: Penn Wynne Sch (math 79% / reading 86%, grade A+, #32 of 1,518 statewide, top 2%, 615 students, 18% FRL); Bala-Cynwyd Ms (math 66% / reading 84%, grade A, #6 of 512 statewide, top 1%, 809 students, 12% FRL); Lower Merion Hs (math 87%, 1,712 students, 17% FRL).
• Watch-outs: flood insurance adds $66/mo; HOA is 40% of rent.
• Market conditions: Rents falling (-7.2%/yr); 91 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals lingering (median 52d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 62% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Cap rate 6.9% vs local median 3.0% in Penn Wynne — 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.
• This rent is only 18% of the median local income ($186k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• It's been on market 163 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.

Repairs flagged (vision-AI assessment)

• Major: Balcony tiles — Broken tiles and exposed concrete
• Major: Flooring — Worn and dirty carpet
• Major: Paint — Worn and discolored paint
• Major: Bathroom fixtures — Outdated and worn fixtures
• Major: Kitchen appliances — Outdated and worn appliances