5391 Chapmans Rd

Cetronia, PA 18069

$499,000B+

5 bd · 3.0 ba · 2,423 sqft · Built 1956 · MultiFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,070/mo
• Mortgage (P&I): −$2,617
• Tax + insurance: −$753
• HOA: −$0
• Vac / Maint / Mgmt: −$1,485
• Net cashflow: $2,216/mo
• Annual: $26,586/yr
• Cap rate: 11.78%
• Cash-on-cash: 19.60%
• DSCR: 1.87
• 1% rule: 1.42%
• Cash to close: $139,720

Investor read

• This is a 5-bed/3.0-bath multifamily listed at $499k.
• At list price, monthly cash flow is $2k ($27k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $499k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $8k of equity ($3k loan paydown + $4k appreciation (0.9% local appreciation)).
• Location reads 93/100 on livability (#6 in PA, #18 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: schools D.
• Parkland SD (suburban): math 59% / reading 70% proficiency, ranked #40 of 539 in PA (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $66/mo; built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 51 active listings in the ZIP; 765 units permitted in Lehigh County in 2024 (286 in 5+ unit buildings).
• Lehigh County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $28k; list at $499k implies a 1715% gain — meaningful room to come down on a strong offer.
• At projected returns (0.9% appreciation + 3.0% rent growth), your $140k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1956 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.