118 W Evergreen St

West Grove, PA 19390

$325,000B

2 bd · 3.0 ba · 3,477 sqft · Built 1900 · MultiFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,256/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$542
• HOA: −$0
• Vac / Maint / Mgmt: −$1,314
• Net cashflow: $2,696/mo
• Annual: $32,355/yr
• Cap rate: 16.25%
• Cash-on-cash: 35.55%
• DSCR: 2.58
• 1% rule: 1.92%
• Cash to close: $91,000

Investor read

• This is a 2-bed/3.0-bath multifamily listed at $325k. Condition is rated fair.
• At list price, monthly cash flow is $3k ($32k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $325k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#183 in PA, #1,542 nationally) — a professional / high-income tenant draw. Strengths: crime A+, housing A+, employment A; Watch: amenities F, commute F.
• Avon Grove SD (suburban): math 54% / reading 61% proficiency, ranked #63 of 539 in PA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Avon Grove Intrmd Sch (math 48% / reading 58%, grade C, #571 of 1,518 statewide, top 38%, 1,457 students, 32% FRL); Fred S Engle Ms (math 49% / reading 69%, grade B, #50 of 512 statewide, top 10%, 819 students, 30% FRL); Avon Grove Hs (math 80% / reading 24%, grade C-, #112 of 437 statewide, top 26%, 1,747 students, 24% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 73 active listings in the ZIP; 1,513 units permitted in Chester County in 2024 (354 in 5+ unit buildings).
• Chester County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $91k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 16.2% vs local median 1.8% in West Grove — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: Kitchen countertops and cabinets — Severe wear and tear, likely requiring replacement.
• Major: Bathroom fixtures and tiles — Outdated and worn, likely requiring replacement.
• Major: Flooring — Significant wear and tear, likely requiring replacement.
• Major: Interior walls and paint — Cracks and peeling paint, likely requiring repainting.
• Major: Exterior siding and paint — Peeling paint and possible rot, likely requiring replacement.
• Major: Windows — Old and likely not energy-efficient, requiring replacement.