397 Towamensing Trl

Penn Forest, PA 18210

$239,900D+

3 bd · 2.0 ba · 1,344 sqft · Built 1988 · SingleFamily · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,150/mo
• Mortgage (P&I): −$1,258
• Tax + insurance: −$430
• HOA: −$33
• Vac / Maint / Mgmt: −$452
• Net cashflow: $-23/mo
• Annual: $-272/yr
• Cap rate: 6.18%
• Cash-on-cash: -0.40%
• DSCR: 0.98
• 1% rule: 0.90%
• Cash to close: $67,172

Investor read

• This is a 3-bed/2.0-bath single-family listed at $240k.
• At list price, monthly cash flow is $-23 ($-272/yr) — negative.
• To cash-flow at today's rent, offer at most $236k (1.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $215k (10.4% below list).
• It's been on market 32 days — a 3% lower offer ($233k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $215k (10.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.9%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Jim Thorpe Area SD (rural): math 25% / reading 47% proficiency, ranked #394 of 539 in PA (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 453 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 180 units permitted in Carbon County in 2024 (10 in 5+ unit buildings).
• Carbon County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts; this cycle's ask is 10330% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $185k; 30% above their basis — modest negotiation headroom, anchor on the comps not their cost.

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 32 days. Have you received any prior offers? Is the seller open to a 10% 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.