184 Southern Vly

Seven Fields, PA 16046

$314,000D

3 bd · 2.5 ba · 1,424 sqft · Built 2006 · Condo · Pending · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,481/mo
• Mortgage (P&I): −$1,647
• Tax + insurance: −$375
• HOA: −$100
• Vac / Maint / Mgmt: −$521
• Net cashflow: $-161/mo
• Annual: $-1,937/yr
• Cap rate: 5.68%
• Cash-on-cash: -2.20%
• DSCR: 0.90
• 1% rule: 0.79%
• Cash to close: $87,920

Investor read

• This is a 3-bed/2.5-bath condo listed at $314k.
• At list price, monthly cash flow is $-161 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $285k (9.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $248k (21.0% below list).
• It's been on market 64 days — a 6% lower offer ($295k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $248k (21.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#266 in PA, #2,336 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities D+, health & safety D, commute F.
• Mars Area SD (rural): math 58% / reading 78% proficiency, ranked #24 of 539 in PA (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Mars Area El Sch (math 68% / reading 80%, grade A, #111 of 1,518 statewide, top 7%, 907 students, 13% FRL); Mars Area Centennial Sch (math 55% / reading 78%, grade A-, #20 of 512 statewide, top 4%, 540 students, 12% FRL); Mars Area Shs (math 82% / reading 93%, grade A, #5 of 437 statewide, top 1%, 1,054 students, 12% FRL).
• Market conditions: 112 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 987 units permitted in Butler County in 2024 (0 in 5+ unit buildings).
• Butler County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 15y ago 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.
• Current owner paid $190k; list at $314k implies a 65% gain — meaningful room to come down on a strong offer.
• Cap rate 5.7% vs local median 3.4% in Seven Fields — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 64 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?