8840 Max Way

Breinigsville, PA 18031

$82,000A-

3 bd · 2.0 ba · 1,568 sqft · Built 1990 · SingleFamily · Pending · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,533/mo
• Mortgage (P&I): −$430
• Tax + insurance: −$203
• HOA: −$0
• Vac / Maint / Mgmt: −$532
• Net cashflow: $1,368/mo
• Annual: $16,416/yr
• Cap rate: 27.28%
• Cash-on-cash: 74.97%
• DSCR: 4.34
• 1% rule: 3.09%
• Cash to close: $22,960

Investor read

• This is a 3-bed/2.0-bath single-family listed at $82k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($16k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $82k).
• It's been on market 26 days — a 2% lower offer ($81k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-0.7%/yr); year-one equity from $567 of loan paydown is wiped out by about $589 of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#1,251 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, employment B+; Watch: amenities F, commute F, health & safety F.
• 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.
• Zoned schools: Fogelsville Sch (math 63% / reading 73%, grade B+, #187 of 1,518 statewide, top 13%, 511 students, 28% FRL); Springhouse Ms (math 50% / reading 71%, grade B+, #39 of 512 statewide, top 8%, 1,344 students, 29% FRL); Parkland Hs (math 81% / reading 24%, grade C-, #107 of 437 statewide, top 25%, 3,220 students, 25% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising (+1.9%/yr); 125 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 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.
• 4 sale attempts since 17y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $70k; 17% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-0.7% appreciation + 1.9% rent growth), your $23k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 27.3% vs local median 2.9% in Breinigsville — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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 A-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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — dated and in poor condition
• Major: bathroom cabinets — dated and in poor condition
• Major: kitchen appliances — old and outdated
• Major: interior walls — dated wallpaper and peeling paint