203 S Main St

Derry, PA 17099

$190,900C+

4 bd · 1.0 ba · 1,774 sqft · Built 1950 · Other · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,000/mo
• Mortgage (P&I): −$1,001
• Tax + insurance: −$243
• HOA: −$0
• Vac / Maint / Mgmt: −$420
• Net cashflow: $336/mo
• Annual: $4,027/yr
• Cap rate: 8.40%
• Cash-on-cash: 7.53%
• DSCR: 1.34
• 1% rule: 1.05%
• Cash to close: $53,452

Investor read

• This is a 4-bed/1.0-bath other listed at $191k.
• At list price, monthly cash flow is $336 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $191k).
• It's been on market 30 days — a 2% lower offer ($188k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $188k (1.5% below list) — sets the bar for market timing.
• In year one you build about $9k of equity ($1k loan paydown + $8k appreciation (4.1% local appreciation)).
• Location reads 67/100 on livability (#952 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Mifflin County SD (town): math 28% / reading 49% proficiency, ranked #380 of 539 in PA (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Indian Valley El Sch (math 47% / reading 62%, grade C, #504 of 1,518 statewide, top 37%, 368 students, 55% FRL); Mifflin Co Ms (math 16% / reading 51%, grade F, #342 of 512 statewide, top 67%, 689 students, 59% FRL); Mifflin Co Hs (math 76% / reading 24%, grade D+, #133 of 437 statewide, top 30%, 1,086 students, 34% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 13 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 58 units permitted in Mifflin County in 2024 (0 in 5+ unit buildings).
• Mifflin County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.1% appreciation + 3.0% rent growth), your $53k cash investment doubles in ~4 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.
• Cap rate 8.4% vs local median 4.5% in Derry — 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 1950 — 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 B-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 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.