1 Broad St

Nanticoke, PA 18634

$609,000B-

63 bd · 49.0 ba · 5,130 sqft · Built — · MultiFamily · Pending · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,927/mo
• Mortgage (P&I): −$3,194
• Tax + insurance: −$1,015
• HOA: −$0
• Vac / Maint / Mgmt: −$2,085
• Net cashflow: $3,634/mo
• Annual: $43,604/yr
• Cap rate: 13.45%
• Cash-on-cash: 25.57%
• DSCR: 2.14
• 1% rule: 1.63%
• Cash to close: $170,520

Investor read

• This is a 7 × 9-bed/?-bath units multifamily listed at $609k.
• At list price, monthly cash flow is $4k ($44k/yr) — positive. Per door: $519/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $609k).
• It's been on market 64 days — a 6% lower offer ($572k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $572k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#520 in PA, #4,791 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, commute F, employment D-.
• Greater Nanticoke Area SD (suburban): math 14% / reading 34% proficiency, ranked #479 of 539 in PA (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 59 active listings in the ZIP; 349 units permitted in Luzerne County in 2024 (16 in 5+ unit buildings).
• Luzerne County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 7 sale attempts since 12y ago; this cycle's ask is 64005% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $90k; list at $609k implies a 577% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $171k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 13.5% vs local median 6.3% in Nanticoke — 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

• It's been on market 64 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?
• 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.
• 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.