544 Moorestown Dr

Chapman, PA 18014

$199,900D

2 bd · 1.0 ba · 800 sqft · Built 1950 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,490/mo
• Mortgage (P&I): −$1,048
• Tax + insurance: −$273
• HOA: −$0
• Vac / Maint / Mgmt: −$313
• Net cashflow: $-145/mo
• Annual: $-1,735/yr
• Cap rate: 5.42%
• Cash-on-cash: -3.10%
• DSCR: 0.86
• 1% rule: 0.75%
• Cash to close: $55,972

Investor read

• This is a 2-bed/1.0-bath single-family listed at $200k.
• At list price, monthly cash flow is $-145 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $174k (12.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $149k (25.5% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $149k (25.5% below list) — sets the bar for 1% rule.
• 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 66/100 on livability (#1,053 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: employment C-, amenities F, commute F.
• Northampton Area SD (suburban): math 47% / reading 54% proficiency, ranked #153 of 539 in PA (top 28%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Moore El Sch (math 64% / reading 74%, grade A-, #151 of 1,518 statewide, top 12%, 354 students, 30% FRL); Northampton Area Ms (math 24% / reading 46%, grade F, #322 of 512 statewide, top 64%, 1,256 students, 42% FRL); Northampton Area Hs (math 60% / reading 24%, grade F, #230 of 437 statewide, top 53%, 1,862 students, 31% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 62 active listings in the ZIP; 567 units permitted in Northampton County in 2024 (151 in 5+ unit buildings).
• Current owner paid $20k; list at $200k implies a 899% gain — meaningful room to come down on a strong offer.
• Cap rate 5.4% vs local median 2.2% in Chapman — 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.

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 1950 — 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.
• 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?
• 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.