287-301 Stambaugh

Sharon, PA 16146

$749,000B-

300 bd · 150.0 ba · — sqft · Built 1950 · MultiFamily · Pending · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $22,249/mo
• Mortgage (P&I): −$3,928
• Tax + insurance: −$1,248
• HOA: −$0
• Vac / Maint / Mgmt: −$4,672
• Net cashflow: $12,401/mo
• Annual: $148,806/yr
• Cap rate: 26.16%
• Cash-on-cash: 70.95%
• DSCR: 4.16
• 1% rule: 2.97%
• Cash to close: $209,720

Investor read

• This is a 15 × 20-bed/?-bath units multifamily listed at $749k. Condition is rated good.
• At list price, monthly cash flow is $12k ($149k/yr) — positive. Per door: $827/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($22k rent vs $749k).
• It's been on market 80 days — a 6% lower offer ($704k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $704k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#1,100 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D+, crime F, amenities F.
• Sharon City SD (suburban): math 20% / reading 42% proficiency, ranked #446 of 539 in PA (top 83%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 74 active listings in the ZIP; 62 units permitted in Mercer County in 2024 (0 in 5+ unit buildings).
• Mercer County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $100k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $210k cash investment doubles in ~2 years — after that, you're playing with house money.
• At $22,249/mo this rent would consume 585% of the median local household income ($46k/yr) (locally 685% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 80 days. Have you received any prior offers? Is the seller open to a 6% 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 1950 — 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F 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?