2230 Mckees Rocks Rd

Pittsburgh, PA 15136

$205,000D-

2 bd · 1.0 ba · 773 sqft · Built 1920 · SingleFamily · Active · 184 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,169/mo
• Mortgage (P&I): −$1,075
• Tax + insurance: −$468
• HOA: −$0
• Vac / Maint / Mgmt: −$245
• Net cashflow: $-620/mo
• Annual: $-7,436/yr
• Cap rate: 2.67%
• Cash-on-cash: -12.95%
• DSCR: 0.42
• 1% rule: 0.57%
• Cash to close: $57,400

Investor read

• This is a 2-bed/1.0-bath single-family listed at $205k.
• At list price, monthly cash flow is $-620 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $96k (53.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (43.0% below list).
• It's been on market 184 days — a 12% lower offer ($180k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $96k (53.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#76 in PA, #546 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime D-.
• Montour SD (suburban): math 62% / reading 75% proficiency, ranked #29 of 539 in PA (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Montour El Sch (math 61% / reading 74%, grade B+, #192 of 1,518 statewide, top 13%, 1,191 students, 26% FRL); David E Williams Ms (math 57% / reading 76%, grade A-, #20 of 512 statewide, top 4%, 931 students, 27% FRL); Montour Hs (math 92% / reading 75%, grade A, #12 of 437 statewide, top 3%, 936 students, 20% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+13.1%/yr); 126 active listings in the ZIP; 2,996 units permitted in Allegheny County in 2024 (1,588 in 5+ unit buildings).
• 4 sale attempts since 12y ago; this cycle's ask has dropped $40k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 2.7% vs local median 3.7% in Pittsburgh — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• It's been on market 184 days. Have you received any prior offers? Is the seller open to a 53% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?