1427 Elmwood Ave

Sharon Hill, PA 19079

$189,999C+

5 bd · 2.0 ba · 1,613 sqft · Built 1935 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,508/mo
• Mortgage (P&I): −$996
• Tax + insurance: −$732
• HOA: −$0
• Vac / Maint / Mgmt: −$527
• Net cashflow: $253/mo
• Annual: $3,035/yr
• Cap rate: 7.89%
• Cash-on-cash: 5.70%
• DSCR: 1.25
• 1% rule: 1.32%
• Cash to close: $53,200

Investor read

• This is a 5-bed/2.0-bath single-family listed at $190k.
• At list price, monthly cash flow is $253 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $190k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#142 in PA, #1,147 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A; Watch: amenities D.
• Southeast Delco SD (suburban): math 13% / reading 33% proficiency, ranked #478 of 539 in PA (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Sharon Hill Sch (math 8% / reading 32%, grade F, #1,259 of 1,518 statewide, top 84%, 573 students, 100% FRL); Academy Park Hs (math 31% / reading 39%, grade F, #311 of 437 statewide, top 71%, 1,355 students, 95% FRL) — zoned schools average 98% FRL vs 63% district-wide (35 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 4.1% of price; built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 35 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 weeks tenant-placement turnaround); 299 units permitted in Delaware County in 2024 (5 in 5+ unit buildings).
• Current owner paid $77k; list at $190k implies a 147% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.9% vs local median 3.2% in Sharon Hill — 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

• Built in 1935 — 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.
• 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.