300 Friedensburg Rd

Mount Penn, PA 19606

$799,900C+

70 bd · None ba · 5,768 sqft · Built 1920 · MultiFamily · Active · 704 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,898/mo
• Mortgage (P&I): −$4,195
• Tax + insurance: −$967
• HOA: −$0
• Vac / Maint / Mgmt: −$3,129
• Net cashflow: $6,607/mo
• Annual: $79,289/yr
• Cap rate: 16.21%
• Cash-on-cash: 35.40%
• DSCR: 2.58
• 1% rule: 1.86%
• Cash to close: $223,972

Investor read

• This is a 7 × 10-bed/?-bath units multifamily listed at $800k.
• At list price, monthly cash flow is $7k ($79k/yr) — positive. Per door: $944/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($15k rent vs $800k).
• It's been on market 704 days — a 12% lower offer ($704k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $704k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#356 in PA, #3,123 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D+, amenities F, commute F.
• Antietam SD (suburban): math 13% / reading 35% proficiency, ranked #468 of 539 in PA (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 166 active listings in the ZIP; solid renter incomes; 258 units permitted in Berks County in 2024 (27 in 5+ unit buildings).
• Berks County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $95k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $150k; list at $800k implies a 433% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $224k cash investment doubles in ~4 years — after that, you're playing with house money.
• 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.
• At $14,898/mo this rent would consume 209% of the median local household income ($86k/yr) (locally 619% 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 704 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 1920 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.