36 Main St

Delaware Water Gap, PA 18327

$759,499C+

None bd · 16.0 ba · 5,280 sqft · Built 1902 · MultiFamily · Active · 159 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,164/mo
• Mortgage (P&I): −$3,983
• Tax + insurance: −$1,266
• HOA: −$0
• Vac / Maint / Mgmt: −$1,714
• Net cashflow: $1,201/mo
• Annual: $14,410/yr
• Cap rate: 8.19%
• Cash-on-cash: 6.78%
• DSCR: 1.30
• 1% rule: 1.07%
• Cash to close: $212,660

Investor read

• This is a 3×1bd/1ba + 1×2bd/1ba units multifamily listed at $759k. Condition is rated good.
• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $300/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $759k).
• It's been on market 159 days — a 12% lower offer ($668k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $668k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.9%/yr); year-one equity from $5k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#585 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: health & safety D, amenities F, commute F.
• Stroudsburg Area SD (suburban): math 33% / reading 49% proficiency, ranked #315 of 539 in PA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1902 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 278 units permitted in Monroe County in 2024 (52 in 5+ unit buildings).
• Monroe County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-0.9% appreciation + 3.0% rent growth), your $213k cash investment doubles in ~10 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 159 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 1902 — 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.
• 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.