2204 Freeport Rd

New Kensington, PA 15068

$32,190B-

2 bd · 1.5 ba · 1,040 sqft · Built 1920 · Other · Active · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,126/mo
• Mortgage (P&I): −$169
• Tax + insurance: −$115
• HOA: −$0
• Vac / Maint / Mgmt: −$237
• Net cashflow: $606/mo
• Annual: $7,268/yr
• Cap rate: 28.87%
• Cash-on-cash: 80.64%
• DSCR: 4.59
• 1% rule: 3.50%
• Cash to close: $9,013

Investor read

• This is a 2-bed/1.5-bath other listed at $32k.
• At list price, monthly cash flow is $606 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $32k).
• It's been on market 39 days — a 3% lower offer ($31k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $31k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $222 of loan paydown is wiped out by about $966 of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#840 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D, crime F, amenities F.
• New Kensington-Arnold SD (suburban): math 16% / reading 31% proficiency, ranked #483 of 539 in PA (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Roy A. Hunt El Sch (math 18% / reading 32%, grade F, #1,174 of 1,518 statewide, top 77%, 607 students, 100% FRL); Valley Jshs (math 13% / reading 27%, grade F, #387 of 437 statewide, top 89%, 869 students, 90% FRL) — zoned schools average 95% FRL vs 56% district-wide (39 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.8% of price; built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.9%/yr); 169 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); 415 units permitted in Westmoreland County in 2024 (10 in 5+ unit buildings).
• Westmoreland County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 27y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 1.9% rent growth), your $9k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 28.9% vs local median 7.1% in New Kensington — 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.

Questions for listing agent

• It's been on market 39 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.