5 Sunrise Dr

Palmdale, PA 17033

$40,999B

3 bd · 2.0 ba · 952 sqft · Built 1993 · Manufactured · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,638/mo
• Mortgage (P&I): −$215
• Tax + insurance: −$103
• HOA: −$0
• Vac / Maint / Mgmt: −$344
• Net cashflow: $975/mo
• Annual: $11,703/yr
• Cap rate: 34.84%
• Cash-on-cash: 101.95%
• DSCR: 5.54
• 1% rule: 3.99%
• Cash to close: $11,480

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $41k.
• At list price, monthly cash flow is $975 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $41k).
• It's been on market 86 days — a 6% lower offer ($39k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $39k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $283 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#975 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Derry Township SD (suburban): math 74% / reading 76% proficiency, ranked #15 of 539 in PA (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Hershey Primary El Sch (math 72% / reading 67%, grade A-, #151 of 1,518 statewide, top 12%, 447 students, 23% FRL); Hershey Ms (math 72% / reading 87%, grade A+, #1 of 512 statewide, top 0%, 731 students, 26% FRL); Hershey Hs (math 90% / reading 24%, grade C, #86 of 437 statewide, top 20%, 1,093 students, 22% FRL).
• Watch-outs: property tax is 2.5% of price.
• Market conditions: Rents rising fast (+4.2%/yr); 59 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 540 units permitted in Dauphin County in 2024 (194 in 5+ unit buildings).
• 5 sale attempts since 11y ago; this cycle's ask has dropped $4k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 4.2% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 86 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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.