2640 Cumberland Hwy

Larimer, PA 15552

$125,000D

2 bd · 1.0 ba · 900 sqft · Built 1976 · Manufactured · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $861/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$88
• HOA: −$0
• Vac / Maint / Mgmt: −$181
• Net cashflow: $-64/mo
• Annual: $-764/yr
• Cap rate: 5.68%
• Cash-on-cash: -2.18%
• DSCR: 0.90
• 1% rule: 0.69%
• Cash to close: $35,000

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $125k.
• At list price, monthly cash flow is $-64 ($-764/yr) — negative.
• To cash-flow at today's rent, offer at most $114k (9.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $86k (31.1% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $86k (31.1% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($864 loan paydown + $5k appreciation (4.1% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Meyersdale Area SD (rural): math 38% / reading 64% proficiency, ranked #177 of 539 in PA (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Meyersdale Area El Sch (math 42% / reading 62%, grade C-, #586 of 1,518 statewide, top 42%, 320 students, 60% FRL); Meyersdale Area Ms (math 27% / reading 62%, grade D, #194 of 512 statewide, top 39%, 186 students, 57% FRL); Meyersdale Area Hs (math 64% / reading 74%, grade B, #49 of 437 statewide, top 12%, 271 students, 36% FRL).
• Market conditions: 26 active listings in the ZIP; 78 units permitted in Somerset County in 2024 (0 in 5+ unit buildings).
• Somerset County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.1% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1976 — 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.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.