20 W Washington St

Chambersburg, PA 17201

$140,000B-

4 bd · 2.0 ba · 2,500 sqft · Built 1945 · Other · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,949/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$245
• HOA: −$0
• Vac / Maint / Mgmt: −$409
• Net cashflow: $560/mo
• Annual: $6,720/yr
• Cap rate: 11.09%
• Cash-on-cash: 17.14%
• DSCR: 1.76
• 1% rule: 1.39%
• Cash to close: $39,200

Investor read

• This is a 4-bed/2.0-bath other listed at $140k.
• At list price, monthly cash flow is $560 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#530 in PA, #4,894 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: amenities D+, crime D, employment D.
• Chambersburg Area SD (other): math 26% / reading 48% proficiency, ranked #383 of 539 in PA (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Stevens El Sch (math 12% / reading 27%, grade F, #1,276 of 1,518 statewide, top 85%, 335 students, 100% FRL); Chambersburg Area Ms - South (math 17% / reading 45%, grade F, #374 of 512 statewide, top 73%, 1,054 students, 69% FRL); Chambersburg Area Shs (math 46% / reading 10%, grade F, #362 of 437 statewide, top 83%, 2,348 students, 60% FRL) — zoned schools average 76% FRL vs 41% district-wide (35 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.4%/yr); 162 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 633 units permitted in Franklin County in 2024 (112 in 5+ unit buildings).
• 3 sale attempts since 28y ago; this cycle's ask is 87% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $75k; list at $140k implies a 87% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.4% rent growth), your $39k cash investment doubles in ~7 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.
• Cap rate 11.1% vs local median 3.9% in Chambersburg — 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.
• This rent runs 38% of the median local income ($61k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1945 — 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.
• Crime grade is D 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.