40 E Columbia Rd

East Pennsboro, PA 17025

$140,000C

2 bd · 1.0 ba · 933 sqft · Built 1936 · Townhouse · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,515/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$211
• HOA: −$0
• Vac / Maint / Mgmt: −$318
• Net cashflow: $252/mo
• Annual: $3,024/yr
• Cap rate: 8.45%
• Cash-on-cash: 7.72%
• DSCR: 1.34
• 1% rule: 1.08%
• Cash to close: $39,200

Investor read

• This is a 2-bed/1.0-bath townhouse listed at $140k.
• At list price, monthly cash flow is $252 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• East Pennsboro Area SD (suburban): math 30% / reading 57% proficiency, ranked #275 of 539 in PA (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: East Pennsboro Area Shs (math 82% / reading 72%, grade A-, #22 of 437 statewide, top 5%, 761 students, 36% FRL).
• Zoned-school proficiency averages 77% at this address vs 44% district-wide (+34 pts) — the actual schools serving this property are materially stronger than the East Pennsboro Area SD average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1936 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.5%/yr); 126 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,052 units permitted in Cumberland County in 2024 (310 in 5+ unit buildings).
• Cumberland County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts 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 $45k; list at $140k implies a 211% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 6.5% rent growth), your $39k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1936 — 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.
• 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.