642-644 Cherry St

Williamsport, PA 17701

$139,900B

6 bd · 2.0 ba · 2,951 sqft · Built 1895 · MultiFamily · Active Under Contract · 279 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,036/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$251
• HOA: −$0
• Vac / Maint / Mgmt: −$638
• Net cashflow: $1,414/mo
• Annual: $16,970/yr
• Cap rate: 18.42%
• Cash-on-cash: 43.32%
• DSCR: 2.93
• 1% rule: 2.17%
• Cash to close: $39,172

Investor read

• This is a 2 × 3-bed/1.5-bath units multifamily listed at $140k.
• At list price, monthly cash flow is $1k ($17k/yr) — positive. Per door: $707/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $140k).
• It's been on market 279 days — a 12% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $123k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $967 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#523 in PA, #4,841 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, employment D, amenities F.
• Williamsport Area SD (urban): math 38% / reading 45% proficiency, ranked #349 of 539 in PA (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cochran Primary Sch (math 32% / reading 37%, grade F, #1,049 of 1,518 statewide, top 71%, 508 students, 80% FRL); Williamsport Area Ms (math 25% / reading 36%, grade F, #376 of 512 statewide, top 74%, 712 students, 68% FRL); Williamsport Area Shs (math 75% / reading 10%, grade F, #226 of 437 statewide, top 52%, 1,479 students, 64% FRL) — zoned schools average 71% FRL vs 55% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1895 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.4%/yr); 189 active listings in the ZIP; 73 units permitted in Lycoming County in 2024 (15 in 5+ unit buildings).
• Lycoming County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $51k; list at $140k implies a 174% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 4.4% rent growth), your $39k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 18.4% vs local median 6.1% in Williamsport — 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.
• At $3,036/mo this rent would consume 68% of the median local household income ($53k/yr) (locally 2178% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 279 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Built in 1895 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.