324 Ash St

Stowe, PA 19464

$250,000F

3 bd · 1.0 ba · 1,523 sqft · Built 1880 · Townhouse · Active · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,895/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$439
• HOA: −$0
• Vac / Maint / Mgmt: −$398
• Net cashflow: $-253/mo
• Annual: $-3,031/yr
• Cap rate: 5.08%
• Cash-on-cash: -4.33%
• DSCR: 0.81
• 1% rule: 0.76%
• Cash to close: $70,000

Investor read

• This is a 3-bed/1.0-bath townhouse listed at $250k.
• At list price, monthly cash flow is $-253 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $205k (17.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $190k (24.2% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $190k (24.2% 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 $8k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#441 in PA, #4,019 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Pottsgrove SD (suburban): math 29% / reading 50% proficiency, ranked #318 of 539 in PA (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lower Pottsgrove El Sch (math 30% / reading 49%, grade F, #947 of 1,518 statewide, top 65%, 661 students, 48% FRL); Pottsgrove Ms (math 17% / reading 51%, grade F, #334 of 512 statewide, top 67%, 697 students, 49% FRL); Pottsgrove Shs (math 60% / reading 30%, grade D-, #192 of 437 statewide, top 44%, 1,021 students, 34% FRL).
• Watch-outs: built in 1880 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.9%/yr); 213 active listings in the ZIP; solid renter incomes; 1,936 units permitted in Montgomery County in 2024 (530 in 5+ unit buildings).
• Montgomery County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 12 sale attempts since 27y 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 $180k; 39% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 1880 — 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.
• 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.