1001 City Ave Unit E-223

Penn Wynne, PA 19096

$160,000C

2 bd · 2.0 ba · 1,222 sqft · Built 1962 · Condo · Active · 271 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,712/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$333
• HOA: −$1,092
• Vac / Maint / Mgmt: −$569
• Net cashflow: $-122/mo
• Annual: $-1,465/yr
• Cap rate: 5.88%
• Cash-on-cash: -1.49%
• DSCR: 0.93
• 1% rule: 1.69%
• Cash to close: $44,800

Investor read

• This is a 2-bed/2.0-bath condo listed at $160k. Condition is rated average.
• At list price, monthly cash flow is $-122 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $142k (11.0% below list).
• Meets the 1% rule at list price ($3k rent vs $160k).
• It's been on market 271 days — a 12% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $141k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#30 in PA, #167 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• 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: Penn Wynne Sch (math 79% / reading 86%, grade A+, #32 of 1,518 statewide, top 2%, 615 students, 18% FRL); Bala-Cynwyd Ms (math 66% / reading 84%, grade A, #6 of 512 statewide, top 1%, 809 students, 12% FRL); Lower Merion Hs (math 87%, 1,712 students, 17% FRL).
• Watch-outs: flood insurance adds $66/mo; HOA is 40% of rent.
• Market conditions: Rents falling (-7.2%/yr); 91 active listings in the ZIP; 28 comparable units currently listed for rent nearby; rentals lingering (median 52d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 61% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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.
• 2 sale attempts; this cycle's ask has dropped $50k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe flood risk; 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.
• Cap rate 5.9% vs local median 3.0% in Penn Wynne — 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.
• This rent is only 17% of the median local income ($186k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 271 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1962 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and in need of updating
• Moderate: bathroom fixtures — dated and in need of updating
• Minor: flooring — carpeted floors in living areas
• Minor: interior walls — light-colored walls, some discoloration