110 Overlook Ln

Hemlock Farms, PA 18428

$899,000D-

3 bd · 2.5 ba · 3,877 sqft · Built 2005 · SingleFamily · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,155/mo
• Mortgage (P&I): −$4,714
• Tax + insurance: −$950
• HOA: −$250
• Vac / Maint / Mgmt: −$452
• Net cashflow: $-4,213/mo
• Annual: $-50,551/yr
• Cap rate: 0.67%
• Cash-on-cash: -20.08%
• DSCR: 0.11
• 1% rule: 0.24%
• Cash to close: $251,720

Investor read

• This is a 3-bed/2.5-bath single-family listed at $899k.
• At list price, monthly cash flow is $-4k ($-51k/yr) — negative.
• To cash-flow at today's rent, offer at most $155k (82.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $215k (76.0% below list).
• It's been on market 81 days — a 6% lower offer ($845k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $155k (82.8% below list) — sets the bar for cash-flow.
• In year one you build about $96k of equity ($6k loan paydown + $90k appreciation (10.0% local appreciation)).
• Location reads 68/100 on livability (#884 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, health & safety A+; Watch: schools C-, amenities F, commute F.
• Wallenpaupack Area SD (rural): math 39% / reading 59% proficiency, ranked #192 of 539 in PA (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 374 active listings in the ZIP; 213 units permitted in Pike County in 2024 (0 in 5+ unit buildings).
• Pike County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $100k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$155k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 0.7% vs local median 6.9% in Hemlock Farms — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• It's been on market 81 days. Have you received any prior offers? Is the seller open to a 83% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.