5 E Penn Ave

Wernersville, PA 19565

$2,750,000B-

None bd · None ba · 8,000 sqft · Built 1890 · MultiFamily · Pending · 588 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $51,828/mo
• Mortgage (P&I): −$14,421
• Tax + insurance: −$4,583
• HOA: −$0
• Vac / Maint / Mgmt: −$10,884
• Net cashflow: $21,939/mo
• Annual: $263,274/yr
• Cap rate: 15.87%
• Cash-on-cash: 34.19%
• DSCR: 2.52
• 1% rule: 1.88%
• Cash to close: $770,000

Investor read

• This is a 42 × 2-bed/?-bath units multifamily listed at $2.75M.
• At list price, monthly cash flow is $22k ($263k/yr) — positive. Per door: $522/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($52k rent vs $2.75M).
• It's been on market 588 days — a 12% lower offer ($2.42M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.42M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $19k of loan paydown is wiped out by about $82k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#583 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Conrad Weiser Area SD (suburban): math 27% / reading 43% proficiency, ranked #391 of 539 in PA (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 39 active listings in the ZIP; 258 units permitted in Berks County in 2024 (27 in 5+ unit buildings).
• Berks County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 4y 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $770k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 588 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1890 — 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?
• 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.