254-256 E Madison St

Marion, PA 17201

$325,000D

4 bd · 0.0 ba · 2,001 sqft · Built 1900 · MultiFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,842/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$542
• HOA: −$0
• Vac / Maint / Mgmt: −$597
• Net cashflow: $-1/mo
• Annual: $-10/yr
• Cap rate: 6.29%
• Cash-on-cash: -0.01%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $91,000

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $325k. Condition is rated good.
• At list price, monthly cash flow is $-1 ($-10/yr) — negative. Per door: $0/mo.
• To cash-flow at today's rent, offer at most $325k (0.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $284k (12.6% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $284k (12.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#1,248 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A, employment B+; Watch: amenities F, commute F, health & safety D-.
• Chambersburg Area SD (other): math 26% / reading 48% proficiency, ranked #383 of 539 in PA (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: New Franklin El Sch (math 42% / reading 47%, grade F, #815 of 1,518 statewide, top 56%, 227 students, 85% FRL); Chambersburg Area Ms - South (math 17% / reading 45%, grade F, #374 of 512 statewide, top 73%, 1,054 students, 69% FRL); Chambersburg Area Shs (math 46% / reading 10%, grade F, #362 of 437 statewide, top 83%, 2,348 students, 60% FRL) — zoned schools average 71% FRL vs 41% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.4%/yr); 164 active listings in the ZIP; 633 units permitted in Franklin County in 2024 (112 in 5+ unit buildings).
• Cap rate 6.3% vs local median 2.6% in Marion — 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.
• At $2,842/mo this rent would consume 56% of the median local household income ($61k/yr) (locally 1306% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1900 — 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — Aesthetic update needed
• Minor: bathroom shower curtain — Needs replacement