1759 Eden Rd

Lancaster, PA 17601

$535,000C

4 bd · 2.0 ba · 2,240 sqft · Built 1940 · MultiFamily · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,507/mo
• Mortgage (P&I): −$2,806
• Tax + insurance: −$587
• HOA: −$0
• Vac / Maint / Mgmt: −$1,156
• Net cashflow: $958/mo
• Annual: $11,500/yr
• Cap rate: 8.44%
• Cash-on-cash: 7.68%
• DSCR: 1.34
• 1% rule: 1.03%
• Cash to close: $149,800

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $535k.
• At list price, monthly cash flow is $958 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $535k).
• It's been on market 22 days — a 2% lower offer ($527k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $527k (1.5% 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 $16k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#71 in PA, #498 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime C-, employment C-.
• Manheim Township SD (suburban): math 53% / reading 68% proficiency, ranked #61 of 539 in PA (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Nitrauer Sch (math 67% / reading 77%, grade A-, #123 of 1,518 statewide, top 9%, 466 students, 33% FRL); Manheim Twp Ms (math 34% / reading 63%, grade C-, #146 of 512 statewide, top 30%, 955 students, 32% FRL); Manheim Twp Hs (math 81% / reading 24%, grade C-, #107 of 437 statewide, top 25%, 1,899 students, 29% FRL).
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+4.0%/yr); 327 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1,093 units permitted in Lancaster County in 2024 (201 in 5+ unit buildings).
• Lancaster County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $250k; list at $535k implies a 114% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.4% vs local median 4.0% in Lancaster — 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 $5,507/mo this rent would consume 65% of the median local household income ($102k/yr) (locally 1296% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Built in 1940 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.