228-230 Church St

Phoenixville, PA 19460

$649,900B-

8 bd · 5.6 ba · 4,000 sqft · Built 1900 · MultiFamily · Pending · 224 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,920/mo
• Mortgage (P&I): −$3,408
• Tax + insurance: −$1,083
• HOA: −$0
• Vac / Maint / Mgmt: −$1,873
• Net cashflow: $2,555/mo
• Annual: $30,666/yr
• Cap rate: 11.01%
• Cash-on-cash: 16.85%
• DSCR: 1.75
• 1% rule: 1.37%
• Cash to close: $181,972

Investor read

• This is a 3×2bd/1.4ba + 1×3bd/1.4ba units multifamily listed at $650k.
• At list price, monthly cash flow is $3k ($31k/yr) — positive. Per door: $639/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $650k).
• It's been on market 224 days — a 12% lower offer ($572k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $572k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 91/100 on livability (#11 in PA, #48 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, employment A+.
• Phoenixville Area SD (suburban): math 44% / reading 66% proficiency, ranked #88 of 539 in PA (top 16%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.6%/yr); 174 active listings in the ZIP; high-income renter base; 1,513 units permitted in Chester County in 2024 (354 in 5+ unit buildings).
• Chester County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts since 25y ago; this cycle's ask has dropped $130k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $159k; list at $650k implies a 309% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.6% rent growth), your $182k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.0% vs local median 2.7% in Phoenixville — 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.
• At $8,920/mo this rent would consume 86% of the median local household income ($124k/yr) (locally 1021% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 224 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 1900 — 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 A-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.