218 Applewood Dr

Mount Pocono, PA 18370

$389,900F

3 bd · 2.0 ba · 1,866 sqft · Built 1979 · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,262/mo
• Mortgage (P&I): −$2,045
• Tax + insurance: −$631
• HOA: −$0
• Vac / Maint / Mgmt: −$475
• Net cashflow: $-888/mo
• Annual: $-10,660/yr
• Cap rate: 3.56%
• Cash-on-cash: -9.76%
• DSCR: 0.57
• 1% rule: 0.58%
• Cash to close: $109,172

Investor read

• This is a 3-bed/2.0-bath single-family listed at $390k.
• At list price, monthly cash flow is $-888 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $233k (40.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $226k (42.0% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $226k (42.0% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($3k loan paydown + $8k appreciation (2.0% local appreciation)).
• Location reads 77/100 on livability (#362 in PA, #3,166 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools F, commute F.
• Pocono Mountain SD (rural): math 37% / reading 55% proficiency, ranked #245 of 539 in PA (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 22 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 278 units permitted in Monroe County in 2024 (52 in 5+ unit buildings).
• Monroe County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $247k; list at $390k implies a 58% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.6% vs local median 5.2% in Mount Pocono — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.