242 Skyview Ln

Brownstown, PA 17543

$375,000F

3 bd · 1.5 ba · 1,002 sqft · Built 1958 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,039/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$425
• HOA: −$0
• Vac / Maint / Mgmt: −$428
• Net cashflow: $-781/mo
• Annual: $-9,372/yr
• Cap rate: 3.79%
• Cash-on-cash: -8.93%
• DSCR: 0.60
• 1% rule: 0.54%
• Cash to close: $105,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $375k.
• At list price, monthly cash flow is $-781 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $237k (36.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $204k (45.6% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $204k (45.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#653 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F.
• Warwick SD (suburban): math 42% / reading 58% proficiency, ranked #158 of 539 in PA (top 29%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: John R Bonfield El Sch (math 35% / reading 55%, grade D-, #809 of 1,518 statewide, top 54%, 476 students, 45% FRL); Warwick Ms (math 23% / reading 57%, grade F, #257 of 512 statewide, top 52%, 578 students, 35% FRL); Warwick Shs (math 86% / reading 50%, grade B, #59 of 437 statewide, top 14%, 1,230 students, 28% FRL) — zoned schools average 36% FRL vs 20% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 218 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1,093 units permitted in Lancaster County in 2024 (201 in 5+ unit buildings).
• Lancaster County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1958 — 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.
• 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.