701 W Market St

Pottsville, PA 17901

$274,900B-

6 bd · 1.0 ba · 4,000 sqft · Built 1900 · MultiFamily · Active · 632 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,754/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$458
• HOA: −$0
• Vac / Maint / Mgmt: −$788
• Net cashflow: $1,066/mo
• Annual: $12,791/yr
• Cap rate: 10.95%
• Cash-on-cash: 16.62%
• DSCR: 1.74
• 1% rule: 1.37%
• Cash to close: $76,972

Investor read

• This is a 1×3.0bd/1.0ba + 1×2.0bd/1.0ba + 1×1.6666666666666667bd/?ba units multifamily listed at $275k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive. Per door: $355/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $275k).
• It's been on market 632 days — a 12% lower offer ($242k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $242k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#442 in PA, #4,025 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F, employment F.
• Pottsville Area SD (town): math 29% / reading 46% proficiency, ranked #395 of 539 in PA (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Clarke El Ctr (math 26% / reading 49%, grade F, #997 of 1,518 statewide, top 66%, 805 students, 70% FRL); Lengel Ms (math 22% / reading 43%, grade F, #355 of 512 statewide, top 70%, 699 students, 66% FRL); Pottsville Area Hs (math 52% / reading 74%, grade B-, #69 of 437 statewide, top 16%, 898 students, 57% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.7%/yr); 177 active listings in the ZIP; 169 units permitted in Schuylkill County in 2024 (0 in 5+ unit buildings).
• Schuylkill County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 13y ago; this cycle's ask has dropped $75k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $30k; list at $275k implies a 816% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.7% rent growth), your $77k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 10.9% vs local median 7.5% in Pottsville — 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 $3,754/mo this rent would consume 72% of the median local household income ($62k/yr) (locally 622% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 632 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• 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.