1300 E Kercher Ave #83

West Myerstown, PA 17067

$80,000B-

2 bd · 2.0 ba · 1,078 sqft · Built 1997 · SingleFamily · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,597/mo
• Mortgage (P&I): −$420
• Tax + insurance: −$133
• HOA: −$435
• Vac / Maint / Mgmt: −$335
• Net cashflow: $274/mo
• Annual: $3,287/yr
• Cap rate: 10.40%
• Cash-on-cash: 14.68%
• DSCR: 1.65
• 1% rule: 2.00%
• Cash to close: $22,400

Investor read

• This is a 2-bed/2.0-bath single-family listed at $80k. Condition is rated average.
• At list price, monthly cash flow is $274 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $80k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $553 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Eastern Lebanon County SD (rural): math 27% / reading 50% proficiency, ranked #360 of 539 in PA (top 67%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: HOA is 27% of rent.
• Market conditions: 65 active listings in the ZIP; 315 units permitted in Lebanon County in 2024 (36 in 5+ unit buildings).
• Lebanon County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~8 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.
• Cap rate 10.4% vs local median 4.3% in West Myerstown — 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 does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Roof inspection — No visible damage, but may need inspection.
• Minor: Siding touch-up — Siding appears intact but may need touch-up.
• Minor: Interior wall touch-up — Interior walls appear clean but may need touch-up.
• Minor: Window cleaning — Windows appear intact but may need cleaning.
• Minor: Landscaping improvement — Landscaping is simple and functional but could be improved for curb appeal.