1435 Wesleys Run

Lower Merion, PA 19035

$1,900,000D+

4 bd · 4.5 ba · 6,482 sqft · Built 2000 · SingleFamily · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $16,500/mo
• Mortgage (P&I): −$9,964
• Tax + insurance: −$3,224
• HOA: −$296
• Vac / Maint / Mgmt: −$3,465
• Net cashflow: $-449/mo
• Annual: $-5,386/yr
• Cap rate: 6.01%
• Cash-on-cash: -1.01%
• DSCR: 0.95
• 1% rule: 0.87%
• Cash to close: $532,000

Investor read

• This is a 4-bed/4.5-bath single-family listed at $1.90M.
• At list price, monthly cash flow is $-449 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.82M (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.65M (13.2% below list).
• It's been on market 52 days — a 3% lower offer ($1.84M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.65M (13.2% below list) — sets the bar for 1% rule.
• In year one you build about $111k of equity ($13k loan paydown + $98k appreciation (5.2% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Lower Merion SD (suburban): math 74% / reading 84% proficiency, ranked #3 of 539 in PA (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Gladwyne Sch (math 80% / reading 89%, grade A+, #14 of 1,518 statewide, top 2%, 540 students, 9% FRL); Black Rock Ms (1,032 students, 13% FRL); Harriton Shs (math 85%, 1,261 students, 14% FRL).
• Market conditions: 33 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,936 units permitted in Montgomery County in 2024 (530 in 5+ unit buildings).
• Montgomery County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 22y 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 $1.32M; 44% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$178k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; 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

• 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 52 days. Have you received any prior offers? Is the seller open to a 13% 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?
• 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.
• 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.