329-331 Market St

Berwick, PA 18603

$248,900B+

9 bd · 7.5 ba · 3,378 sqft · Built 1900 · MultiFamily · Pending · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,501/mo
• Mortgage (P&I): −$1,305
• Tax + insurance: −$415
• HOA: −$0
• Vac / Maint / Mgmt: −$945
• Net cashflow: $1,836/mo
• Annual: $22,028/yr
• Cap rate: 15.14%
• Cash-on-cash: 31.61%
• DSCR: 2.41
• 1% rule: 1.81%
• Cash to close: $69,692

Investor read

• This is a 3 × 3-bed/2.5-bath units multifamily listed at $249k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $612/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $249k).
• It's been on market 17 days — a 2% lower offer ($245k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $245k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#412 in PA, #3,762 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Berwick Area SD (other): math 32% / reading 57% proficiency, ranked #291 of 539 in PA (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Berwick Area Ms (math 19% / reading 54%, grade F, #307 of 512 statewide, top 61%, 844 students, 100% FRL); Berwick Area Hs (math 57% / reading 70%, grade B-, #69 of 437 statewide, top 16%, 782 students, 100% FRL) — zoned schools average 100% FRL vs 46% district-wide (54 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 90 active listings in the ZIP; 82 units permitted in Columbia County in 2024 (0 in 5+ unit buildings).
• Columbia County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $70k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.1% vs local median 5.4% in Berwick — 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

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — 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 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — poor condition
• Major: bathroom fixtures — poor condition
• Major: kitchen flooring — dated and worn
• Major: bathroom flooring — dated and worn