713 Cypress Ct

Montgomeryville, PA 19454

$245,000D+

2 bd · 2.0 ba · 920 sqft · Built 1987 · Manufactured · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,129/mo
• Mortgage (P&I): −$1,285
• Tax + insurance: −$207
• HOA: −$0
• Vac / Maint / Mgmt: −$447
• Net cashflow: $190/mo
• Annual: $2,278/yr
• Cap rate: 7.22%
• Cash-on-cash: 3.32%
• DSCR: 1.15
• 1% rule: 0.87%
• Cash to close: $68,600

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $245k.
• At list price, monthly cash flow is $190 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $213k (13.1% below list).
• It's been on market 26 days — a 2% lower offer ($241k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $213k (13.1% 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 $7k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#327 in PA, #2,871 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D, commute F.
• North Penn SD (suburban): math 48% / reading 67% proficiency, ranked #76 of 539 in PA (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Montgomery El Sch (math 58% / reading 74%, grade B+, #238 of 1,518 statewide, top 16%, 643 students, 17% FRL); Pennbrook Ms (math 43% / reading 70%, grade B, #66 of 512 statewide, top 13%, 807 students, 25% FRL); North Penn Shs (math 78% / reading 50%, grade B-, #67 of 437 statewide, top 15%, 3,184 students, 34% FRL).
• Market conditions: Rents rising fast (+4.6%/yr); 101 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 3 sale attempts since 5y ago; this cycle's ask is 56% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $162k; list at $245k implies a 51% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: 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 7.2% vs local median 2.9% in Montgomeryville — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.