Kennedy Plan

Middlesex, PA 16059

$409,990F

3 bd · 2.5 ba · 1,901 sqft · Built — · Townhouse · Active · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,800/mo
• Mortgage (P&I): −$2,392
• Tax + insurance: −$760
• HOA: −$0
• Vac / Maint / Mgmt: −$588
• Net cashflow: $-940/mo
• Annual: $-11,278/yr
• Cap rate: 3.82%
• Cash-on-cash: -8.83%
• DSCR: 0.61
• 1% rule: 0.61%
• Cash to close: $127,702

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $410k.
• At list price, monthly cash flow is $-940 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $320k (21.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $280k (31.7% below list).
• It's been on market 48 days — a 3% lower offer ($398k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $280k (31.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.3%/yr); year-one equity from $3k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Mars Area SD (rural): math 58% / reading 78% proficiency, ranked #24 of 539 in PA (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Market conditions: 48 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 987 units permitted in Butler County in 2024 (0 in 5+ unit buildings).
• Butler County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

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 48 days. Have you received any prior offers? Is the seller open to a 32% concession, seller financing, or rate buy-down credit?
• 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.