303 W South St

Cumberland, PA 15320

$55,900B+

2 bd · 1.0 ba · 780 sqft · Built 1952 · SingleFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,236/mo
• Mortgage (P&I): −$293
• Tax + insurance: −$141
• HOA: −$0
• Vac / Maint / Mgmt: −$260
• Net cashflow: $542/mo
• Annual: $6,506/yr
• Cap rate: 17.93%
• Cash-on-cash: 41.56%
• DSCR: 2.85
• 1% rule: 2.21%
• Cash to close: $15,652

Investor read

• This is a 2-bed/1.0-bath single-family listed at $56k. Condition is rated good.
• At list price, monthly cash flow is $542 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $56k).
• It's been on market 21 days — a 2% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (1.5% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($386 loan paydown + $2k appreciation (3.4% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Carmichaels Area SD (rural): math 17% / reading 36% proficiency, ranked #465 of 539 in PA (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Carmichaels Area El Ctr (math 22% / reading 37%, grade F, #1,125 of 1,518 statewide, top 75%, 444 students, 61% FRL); Carmichaels Area Ms (math 5% / reading 35%, grade F, #438 of 512 statewide, top 86%, 227 students, 52% FRL); Carmichaels Area Hs (math 37%, 285 students, 26% FRL) — zoned schools at 46% FRL track the district average.
• Watch-outs: property tax is 2.5% of price; built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 24 active listings in the ZIP; 30 units permitted in Greene County in 2024 (0 in 5+ unit buildings).
• Greene County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (3.4% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 17.9% vs local median 2.3% in Cumberland — 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 1952 — 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.